Description

Supply Chain Management

Sep 2026 Examination

 

Q1 A national value-retail chain has rapidly expanded into tier-2 and tier-3 cities with a promise of low prices and reliable product availability. However, the company is facing frequent stockouts of fast-moving products, excess inventory of slow-moving items, and rising transportation costs. Marketing promotions are often introduced without coordination with operations, while regional warehouses continue to depend on outdated data and manual planning systems. Using the concept of strategic fit, explain how the company should redesign its supply chain strategy to align with its competitive promise of affordability and rapid replenishment. Illustrate your answer with suitable supply chain decisions related to sourcing, inventory, distribution, technology adoption, and performance measurement. (10 Marks)

Ans 1.

Introduction

This value-retail chain’s rapid tier-2 and tier-3 expansion has exposed a strategic fit gap, where its competitive promise of affordability and rapid replenishment is undermined by uncoordinated promotions, outdated regional planning systems, and inconsistent inventory outcomes across stockouts and excess stock. Applying strategic fit requires aligning every supply chain decision with the company’s core competitive priority, ensuring sourcing, inventory, distribution, and technology work together rather than each region pursuing

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Q2 A regional grocery distributor dealing in fresh produce is facing increasing spoilage, rising freight costs, and inconsistent service levels to retail outlets. Some stores experience stockouts during peak demand periods, while others maintain excess inventory that expires before sale. Currently, management evaluates performance mainly through monthly sales revenue and total logistics cost, which fails to identify operational inefficiencies. Evaluate the supply chain performance metrics that should receive highest managerial priority in this situation. Justify how these metrics can help reduce waste, improve responsiveness, and enhance customer satisfaction. (10 Marks)

Ans 2.

Introduction

This grocery distributor’s reliance on monthly sales revenue and total logistics cost fails to capture the operational inefficiencies actually driving spoilage, inconsistent service, and freight cost increases, meaning management needs performance metrics that directly diagnose where and why the supply chain is underperforming rather than only summarizing financial outcomes after the fact, particularly given the perishable nature of the products

 

Q3(A) An Indian e-commerce retailer is preparing for a nationwide festive sale expected to create highly uneven demand across different product categories. In earlier sale periods, the company experienced stockouts of fast-moving products, delayed deliveries, and excess inventory in warehouses. To improve performance, the firm plans to redesign its safety inventory management system using predictive forecasting, regional demand analysis, and supplier coordination. Design a suitable safety inventory strategy for the company and explain how the proposed system can help maintain service levels and reduce delivery delays during peak demand conditions. (5 Marks)

Ans 3A.

Introduction

This e-commerce retailer’s festive sale stockouts and delays stem from safety inventory decisions that failed to anticipate highly uneven demand across product categories, requiring a redesigned strategy combining predictive forecasting, regional analysis, and supplier coordination to maintain service levels during peak conditions.

Concept and Application

Category-Specific Safety Stock Levels

Rather than applying uniform safety stock policies across all products, categories with

 

Q3(B) HomeKart, a national e-commerce company selling household essentials, is experiencing rapid growth in customer orders across urban, semi-urban, and rural markets. The company faces challenges such as fragmented inventory information, inconsistent logistics performance, and high last-mile delivery costs. To improve customer experience and operational efficiency, the company plans to redesign its e-business-enabled distribution network using digital technologies and partner collaboration. Design a suitable e-business-enabled distribution network strategy for the company and explain how the proposed system can improve visibility, flexibility, and delivery responsiveness across diverse markets. (5 Marks)

Ans 3B.

Introduction

HomeKart’s fragmented inventory visibility, inconsistent logistics, and high last-mile costs across urban, semi-urban, and rural markets require an e-business-enabled distribution network that uses digital integration and partner collaboration to unify visibility and improve