Description
Supply Chain Management
Dec 2026 Examination
Q1. A leading global apparel retailer is facing frequent stockouts and excess inventory because its supply chain was designed mainly for cost efficiency, with centralised warehouses and long replenishment cycles. However, customers now expect high product availability and faster delivery. The company is therefore considering a shift towards a more agile and responsive supply chain.
Apply the Strategic Fit Framework to redesign the retailer’s supply chain so that it better supports its competitive strategy. In your answer, recommend suitable changes in supply chain configuration, technology adoption, and cross-functional collaboration to improve responsiveness, product availability and customer service. (10 Marks)
Ans 1.
Introduction
This global apparel retailer built its supply chain mainly for cost efficiency. It relies on centralised warehouses and long replenishment cycles. That design now works against it, since customers expect high product availability and fast delivery in a competitive retail market. The Strategic Fit Framework offers a clear way to resolve this mismatch. It aligns supply chain capabilities directly with competitive strategy. Applying this framework here means rethinking configuration, technology, and collaboration together, rather than treating responsiveness as a single isolated fix. A well-aligned supply chain can restore product availability and customer
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Q2 (A). An e-commerce company aims to provide same-day delivery in both urban and rural areas. It uses AI-based route optimisation, regional hubs and local delivery partners. However, the company faces challenges in balancing delivery speed, cost, environmental impact and access for underserved customers.
Evaluate the effectiveness of the company’s distribution strategy in balancing operational efficiency with social and environmental responsibility. (5 Marks)
Ans 2(A).
Introduction
This e-commerce company wants same-day delivery across both urban and rural areas. It is using AI route optimisation, regional hubs, and local delivery partners. Balancing delivery speed, cost, environmental impact, and fair access for underserved customers is proving to be a genuine challenge across this expanding network.
Concept and Application
Strengths of the Current Distribution Strategy
AI-based route optimisation genuinely reduces travel distance and fuel consumption. Regional
Q2 (B). A large online grocery retailer operates warehouses across different regions in India. It currently keeps safety stock at each location, but rising costs have led management to consider centralising safety stock at regional distribution centres. While centralisation may reduce inventory costs, it could increase lead times and transportation costs for some customers. Evaluate the multi-location and centralised approaches to safety stock management and recommend a suitable approach for the retailer. (5 Marks)
Ans 2(B).
Introduction
This online grocery retailer currently holds safety stock separately at each regional warehouse. Rising costs are pushing management to consider centralising this stock at regional distribution centres instead. This decision involves a genuine trade-off between lower inventory costs and longer delivery times for some customers.
Concept and Application
Benefits of Multi-Location Safety Stock
Keeping safety stock at each individual location allows faster replenishment and shorter delivery
