Advanced Supply Chain Management
June 2024 Examination
Q1. Sourcing strategies used by Maruti helped it in lower down its costs to the tune of
approximately Rs. 60 crores and improve the delivery time by 20 per cent. Discuss how
sourcing could have helped Maruti in efficient procurement processes. (10 Marks)
Q2. Designing a distribution network is a systematic process that involves a number of steps.
Discuss these steps in detail with relevant FMCG industry examples. (10 Marks)
Q3. Mega Electronic Limited supplies electronic components to various TV manufacturers.
In the year 2022 the cost of goods sold by Mega Electronic was Rs.240 crores. The company
was in a very bad shape with huge accumulated losses. After an in-depth study the
management found its different process and technologies was not correctly aligning the
capabilities of its supply chain with its business strategies. The company carried an average
inventory of Rs.60 crore and it was estimated the cost of capital as 10%, storage cost was
7% and risk cost was 6% per unit per annum of inventory. Mega Electronic created a task
force to examine the different supply chain drivers and improve its utilization. In the next
financial year, 2023, the cost of goods sold remained the same but the company, due to
various improvement initiatives undertaken, was able to increase its inventory turnover by 3
times of what it had achieved in the year 2022.
a. Calculate the savings achieved by Mega Electronic Limited through its improvement
initiatives. (5 Marks)
b. Discuss some 5 different parameters Mega Electronics Limited can use for measuring its
performance of its supply chain. (5 Marks)