Description

Supply Chain Management

April 2025 Examination

 

 

1. You are the Chief Operations Officer of a growing e-commerce company struggling with high operational costs and delivery delays. To address these challenges, your company is considering outsourcing logistics and customer support services. Identify and analyze the factors you would consider before selecting an outsourcing partner. Design a strategy to monitor the performance of the outsourced processes and ensure quality control and also discussed factors to be considered before selecting an outsourcing partner. Propose measures to manage potential risks, such as data security and loss of brand identity, while working with the outsourcing partner. (10 Marks)

Ans 1.

Introduction

Outsourcing logistics and customer support is a strategic decision for e-commerce companies seeking to reduce operational costs and enhance delivery efficiency. By collaborating with external service providers, businesses can leverage specialized expertise, advanced technology, and economies of scale. However, outsourcing poses significant risks such as data security breaches, service quality inconsistency, and potential dilution of brand identity. As the Chief Operations Officer of a growing e-commerce company, the choice of an outsourcing partner is critical to overcoming current challenges, such as high operational costs and delivery delays, while ensuring sustainable growth. Selecting the right partner involves analyzing multiple

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2. Imagine you are a supply chain manager for a popular consumer electronics brand. The company recently launched a new product, and initial demand spikes have caused significant disruptions in the supply chain. The manufacturing team has overproduced, leading to excess inventory, while the retailers are now reporting declining sales. Identify the factors that might have contributed to the bullwhip effect in this scenario. Propose strategies to stabilize the supply chain and prevent similar disruptions in the future. (10 Marks)

Ans 2.

Introduction

The bullwhip effect is a common challenge in supply chain management, characterized by increasing variability in demand forecasts as one moves upstream in the supply chain. This phenomenon often leads to excessive inventory, stockouts, and inefficiencies across the network. In the case of a popular consumer electronics brand, the launch of a new product has resulted in initial demand spikes, causing significant disruptions. While retailers are now experiencing declining sales, the manufacturing team has overproduced, leading to surplus inventory. Such issues arise from misaligned demand forecasting, poor communication, and d

 

 

3. You are the supply chain manager for a global apparel brand that experiences significant variability in customer demand due to seasonal trends. The company currently follows a push strategy, manufacturing large volumes of products based on forecasted demand. However, unsold inventory during off-seasons and stockouts during peak seasons have led to inefficiencies and lost sales.
4. Analyze the challenges associated with the current push-based approach in this scenario. (5 Marks)

Ans 3a.

Introduction

The push-based strategy relies on forecasting demand and manufacturing products in large volumes before they are sold. While this approach can be cost-effective in stable demand conditions, it poses significant challenges for global apparel brands dealing with seasonal demand variability. The mismatch between forecasted and actual demand often leads to unsold inventory during off-seasons and stockouts during peak seasons. These inefficiencies result in

 

 

1. Propose how a hybrid push-pull strategy could be implemented to balance inventory levels and meet customer demand effectively. (5 Marks)

Ans 3b.

Introduction

The hybrid push-pull strategy combines the strengths of both push and pull models to address demand variability and optimize inventory management. Under this approach, the initial stages of production are push-based, driven by forecasts, while the final stages are pull-based, driven by actual customer demand. For global apparel brands, this strategy offers a practical solution to balance inventory levels, reduce inefficiencies, and respond more effectively to seasonal trends.