T.E.

(Mechanical) (Sem-VI) (Revised Course

2019-20) EXAMINATION JUNE 2024
Q1 (10 marks)
b. Pentagon Stationaries purchases mini drafters at Rs. 250 per piece and sells it at
Rs 300 per piece to the customers. The annual demand for the mini drafters is 1,300
per year. Pentagon stationaries incurs a holding cost of 15%. The ordering cost is Rs
500. The manufacturer has offered a discount of Rs 25 each for all the mini drafters
over the coming month. How many mini drafters should Pentagon stationaries order given
promotion? Calculate the forward buy.

Q2 (10 marks)
a. Calculate the expression for Economic order Quantity for All unit Quantity discount
model. Also determine the number of items to be ordered in each lot considering the
below mentioned data considering an all-unit quantity discount model. Consider the
demand as 50,000 items per year and the holding cost as 20 % of the unit cost.

Unit
Order Fixed order placement transportation and receiving cost
Cost
Quantity (for each order placed) in Rs
(Rs)

0-2999 15 400

3000-
13
4999

5000 or
10
more

Q3 (10 marks)
Weekday Ice Cream has decided to locate a new plant to satisfy the needs of Goan
markets as listed in the table. The suppliers from Mapusa, Margao and Quepem are
chosen to source the raw materials. Two locations i.e. Location 1(130,130) and
location 2 (80,70) are identified to be locations to setup the plant. Identify the
best location among the two with respect to the transportation costs using Gravity
Location Model. If Monday Traders, Margao changes their location to (120,70) instead
of (85,80) will there be any change in the decision regarding the best location? The
data is shown below.

Transportation cost Quantity in Coordinates

Source(S)/ Market (M) Y
(Rs/ Km) units X

Sunday Enterprises,
5 9000 90 120
Mapusa (S)

Monday Traders,
7 8000 85 80
Margao (S)

Tuesday Suppliers, 4 5000 120 30

 Quepem (S)

Pernem (M) 6 2500 85 160

Panjim (M) 5 4000 85 120

Vasco (M) 5 5500 55 85

Ponda (M) 4.5 3500 90 90

T.E. (Mechanical) Semester-VI (Revised

Course 2019-20) EXAMINATION JANUARY 2023
Open Elective- Supply Chain Management
Q2 (10 marks)
Happiness Prevails & Company a well-known dealer of Cars has 05 retail outlets serving
the entire Dharwad area (disaggregate option). Weekly demand at each outlet is
normally distributed with D- 45 cars and a standard deviation of op = 5. The lead time
for replenishment from the manufacturer in L=2 weeks. The cost of each car is Rs.
5,00,000/- and the holding cost is 20%. The dealership is considering the possibility
of replacing the 05 retail outlets with a single large outlet (Aggregate option).
Assuming the demand in the central outlet would be the sum of the demand across all
four areas and independent of each other; calculate the savings in holding cost
resulting from aggregation. The dealership has a target CSL of 0.90.

Q3 (10 marks)
Chennai Coffee Makers have decided to locate a new plant to satisfy the needs of Tamil
Nadu markets (M) as listed in the table. The suppliers (S) from Vellore, Madurai &
Tiruchirappalli are chosen to source the raw material. Two locations i. e. Location 1
(95, 95) & Location 2 (65, 75) are identified to be locations to set up the plant.
Identify the best location amongst the two with respect to transportation costs using
Gravity Location Model. If M/s. Ashwin enterprises, Vellore change their location to
(65,95) instead of (85,115), will there be any change in the decision regarding the
best location? The data is as shown below:

Transportation Quantity Coordinates

Source (S) / Market (M) Y
cost (Rs/km) in units X

M/s. Rayudu Enterprises,

15 800 85 115
Vellore (S)

M/s. Gaikwad Traders,

17 700 85 75
Madurai (S)

M/s. Jaddu suppliers,

19 600 105 25
Tiruchirapalli (S)

Canniyakumari (M) 18 550 85 155

Canchipuram (M) 14 500 85 115

 Koimbatore (M) 16 350 95 85

Q4 (10 marks)
BCL (Brake Choosers Limited), Goa purchase 3,00,000 pieces of Brake Shoes from Make
Industries, Delhi per year at a price of Rs. 100 per piece. Make industries ships each
BCL order within a day of receiving it. Demand has been constant for several years and
is expected to stay that way. BCL, Goa carries safety inventory equal to 50% of
average demand during delivery lead-time & annual holding cost 25% of cost per brake
shoe. Transportation proposals of various carriers have been received by the Manager
of BCL, Goa who has decided to include inventory costs in the transportation decision
as transportation decision affects the cycle, safety and in transit inventory for BCL,
Goa. Analyse the best transportation option from the proposals received. If the plant
manager wants the second lowest option to get the contract, by what amount should that
carrier reduce his shipping cost per piece?

LOTSIZE (IN SHIPPING COST TRANSIT TIME

CARRIER
PIECES) (RS/PIECE) (DAYS)

RAKE ROADWAYS 9000 4 8

TAKE
3000 5 5
TRANSPORT

CAKE CARRIERS 7000 3 7

Q7 (10 marks)
The following table refers to the data collected to select the best supplier amongst 4
probable suppliers i.e. A, B, C, D on the basis of cost criteria i.e. Product cost and
Lead time and benefit criteria i.e. Quality and Reliability. Analyse the given data
and solve the supplier selection problem using TOPSIS MCDM method.

Cost Benefit Cost Benefit

Weightage 0.3 0.3 0.3 0.1

Supplier PRODUCTCOST QUALITY LEAD TIME RELIABILITY

A 3000 8 2 5

B 3500 24 4 3

C 2800 16 5 4

D 3300 32 3 3

T.E. (Mechanical) (Semester - VI) (RC 2019-

20) EXAMINATION AUGUST 2022 (Open Elective
- OE644) Supply Chain Management
Q2 (10 marks)
Muktar Auto, a well-known dealer of Scooters has 04 retail outlets serving the entire
Goa region (disaggregate option). Weekly demand at each outlet is normally distributed
with a mean of 60 Scooters and a standard deviation of 5. The lead time for
replenishment from the manufacturer is 2 weeks. Muktar Auto has a target CSL of 0.90.
Calculate the disaggregate safety inventory. The dealership is considering the
possibility of replacing the 04 retail outlets with a single large outlet (Aggregate
option). Assuming the demand in the central outlet would be the sum of the demand
across all four outlets and independent of each other, calculate the aggregate safety
inventory. Also calculate the savings in Inventory holding costs.

Q3 (10 marks)
Pankaj Stationery Ltd. (PSL) is an online retailer of stationery. Ball pens represent
a significant percentage of their sales. Demand for Ball Pens is 35,000 items a year.
PSL incurs fixed order placement, transportation and receiving cost of Rs 500 each
time an order of Ball Pens is placed with manufacturer. PSL incurs a holding cost of
10%. The price charged by the manufacturer varies according to the All Unit discount
pricing schedule as shown. Evaluate the number of Ball Pens that the Manager of PSL
should order in each lot.

Order Quantity Unit cost in Rs

0-500 140

500-700 120

700 or more 100

Q6 (10 marks)
The following table refers to the data collected by the purchase manager of Bunty da
Dhaba, Punjab to select the best supplier amongst 3 probable suppliers i.e. V1, V2, V3
on the basis of cost criteria i. e. Product cost and Lead time and benefit criteria
i.e. Quality and Reliability. Analyse the given data and solve the supplier selection
problem using TOPSIS MCDM method.

Cost Benefit Cost Benefit

Weightage 0.25 0.35 0.25 0.15

Supplier PRODUCTCOST QUALITY LEAD TIME RELIABILITY

V1 500 8 2 5

V2 400 24 4 3

V3 300 16 3 4

Q7 (10 marks)
eV Motors, Goa a well-known dealer serves to the demand of their e-bikes in the entire
Goa Area (disaggregate option). It presently has 04 retail outlets. Weekly demand at
each outlet is normally distributed with 10 e-bikes and a standard deviation of 5. The
lead time for replenishment from the manufacturer in L = 2 weeks. The cost of each e-
bike is Rs. 2,00,000/- and the holding cost is 25%. Calculate the disaggregate safety
inventory. eV Motors is considering the possibility of replacing the 04 retail outlets
with a single large outlet (Aggregate option). Assuming the demand in the central
outlet would be the sum of the demand across all four areas, calculate aggregate
inventory and the savings in holding cost resulting from aggregation. The dealership
has a target CSL of 0.90.

Q8 (10 marks)
Demand for a product is 10000 items per year. The company incurs a holding cost of 10%
and a fixed order placement, transportation and receiving cost of Rs 300. The price
charged by the manufacturer varies according to the all-units discount pricing
schedule as shown. Evaluate the number of items to be ordered in each lot.

Order Quantity Unit Price (Rs.)

0- 1000 20.00

1000 - 2000 18.00

2000 and more 16.00

T.E - (Mechanical) (Sem-VI)(Revised Course

2019-2020) EXAMINATION JULY 2023 Supply
Chain Management
Q1 (10 marks)
B. Pagson Mart sells compass box. Demand for the compass box is 65000 units per year.
The manufacturer of compass box currently charges Rs. 50 per box and holding cost is
10%. Pagson mart incurs a fixed order cost of Rs. 3000 each time it places orders for
compass box with the manufacturer. Evaluate the optimal size for the compass box for
Pagson mart. The manufacturer has offered a discount of Rs. 3/- for all units
purchased by Pagson mart over the coming month. How many units of the product should
Pagson mart order given the promotion? Calculate the cycle inventory and forward buy
in presence of the trade promotion.

Q2 (10 marks)
B. As a supply chain consultant, you are entrusted with giving optimal solution with
regards to transportation costs to an industrial house which plans to manufacture
either of two products i.e. Product A and Product B. As per the data provided by you
as per shown in the table, markets and demands for both the Products are found to be
same but the suppliers are different. The Industrial house has already purchased plot
in an area for its business which is denoted by coordinates (50, 70). Comment on which
of the two Products the Industrial house should manufacture.

Supply sources/Markets Transportation cost Quantity Coordinates Y

 (Rs/Km) X

Markets

P 8 50 35 95

Q 7 80 40 95

R 8 60 50 85

Supply sources (Product

A)

S 6 75 35 95

T 8 60 15 95

Supply sources (Product

B)

U 8 35 35 95

V 7 60 15 95

Q3 (10 marks)
B. The following data refers to an All Unit Quantity Discount pricing schedule. The
Demand for the product is 100000 items per year. The Holding cost is 20% of unit cost.
Fixed order placement, transportation and receiving cost for each order placed
irrespective of order quantity is Rs 400. Find the number of items to be ordered in
each lot.

Order Quantity Unit cost in Rs

0-3000 20

3000-5500 18

5500 or more 16

Q5 (10 marks)
B. A Company purchases 90,000 products per year from its vendor at a price of Rs 500/-
per piece. The vendor ships the order within a day of receiving it. Demand has been
constant for several years and is expected to stay that way. The company carries a
safety Inventory equal to 50% of average demand during delivery lead time and annual
Holding cost 15% of cost per piece. Transportation proposals of various carriers have
been received by the Manager of the company who has decided to include inventory costs
in the Transportation decision as it affects the cycle, safety and In Transit
inventory for the company. Analyse the best Transportation option from the proposals
received.

Lot Size (in Shipping cost Transit time

Carrier
pieces) (Rs/piece) (days)

Konkan Rail 8000 4 7

 Princess 3000 5 5
Transport

RAO Carriers 4000 8 5

Q6 (10 marks)
B. An automobile manufacture wants to select the best supplier to supply seat belts
from their probable supplier list based on four criteria i.e. cost, quality, lead time
and capacity. The weights for criteria and rating of each supplier for criteria given
by experts are tabulated as shown below. There are three suppliers in the list who
supply the assembly as per the specifications namely supplier A, B and C. The purchase
manager has hired you as a consultant to select the best supplier amongst the three
options. As an expert in solving multi criteria decisionmaking problems, kindly
evaluate the above problem using TOPSIS and assist the purchase manager to select the
best supplier amongst the given option considering cost and lead time as non-
beneficial and Quality and capacity as beneficial criteria.

Criteria weightage 0.5 0.3 0.2 0.1

Supplier Cost Quality Lead Time Capacity

A 9 9 7 7

B 8 8 1 9

C 8 7 3 7

Q7 (10 marks)
B. M/s Mola Motors a well-known dealer of motor cycles has 04 retail outlets serving
the entire Goa region (disaggregate option). Weekly demand at each outlet is normally
distributed and is as shown in the Table. The lead time for replenishment from the
manufacturer is 2 weeks. The cost of each Motor cycle is Rs. 1,00,000/- and the
holding cost is 20%. The dealership is considering the possibility of replacing the 04
retail outlets with a single large outlet (Aggregate option). Assuming the demand in
the central outlet would be the sum of the demand across all four areas and
independent of each other, calculate the disaggregation and aggregation safety
inventory for the two options. The dealership has a target CSL of 0.90.

Retail Outlet Mean Standard Deviation

1 50 5

2 45 8

3 60 10

4 55 12

T.E. (Mechanical) Semester — VI (Revised

Course 2019-20) EXAMINATION AUGUST 2022
Supply Chain Management
Q2 (10 marks)
a) Demand for a product is 120000 items per year. The company incurs a holding cost of
25 % and a fixed order placement, transportation and receiving cost of Rs 200. The
price charged by the manufacturer varies according to the all units discount pricing
schedule as shown. Evaluate the number of items to be ordered in each lot.

Order Quantity Unit Price (Rs.)

0-3000 12.00

3000-6000 11.00

6000 and more 9.00

Q3 (10 marks)
b) Two locations i.e., Location 1 (75, 60) and Location 2 (45, 30) are identified to
be locations to set up a new plant by Goa Motors (GM) to satisfy the needs of Goan
markets for e-vehicles as listed in the table. The suppliers from Mapusa, Margao and
Canacona are chosen to source the raw material. Identify the best location amongst the
two with respect to transportation costs using Gravity Location Model. The data is as
shown below:

Transportation Cost Quantity (in Coordinates

Sources/Markets Y
(Rs/km) units) X

Supply

Goa Electronics,
6 120 40 85
Mapusa

Metals Goa Limited,

7 100 60 63
Margao

Goa Spares & Parts,

9 90 60 45
Cancona

Markets

Pernem 9 35 40 105

Panaji 7 50 30 85

Vasco 8 65 40 75

Ponda 6 65 50 75

T.E. - (Mechanical) (Sem-VI) (Revised

Course 2019-2020) EXAMINATION JANUARY 2024
OPEN ELECTIVE - Supply Chain Management
Q2 (10 marks)
a) The Orange company prices J-Pods at Rs. 550 per unit. Good Buy sells the J-Pods at
Rs 775. Annual demand at this retail price turns out to be 4,50,000 units. Good Buy
incurs ordering, receiving, and transportation costs of Rs. 10,000 for each lot of J-
Pods ordered. The holding cost used by the retailer is 20 %. Evaluate the optimal lot
size. The Orange company has discounted J-Pods by Rs 40 for the short term. How many
units of the product should Good Buy order given the promotion? Determine the forward
buy in the presence of trade promotion.

Q3 (10 marks)
b) Two locations i.e., Location 1 (80, 60) and Location 2 (45, 35) are identified to
be locations to set up a new plant by Goa Motors (GM) to satisfy the needs of Goan
markets for e-vehicles as listed in the table. The suppliers from Mapusa, Margao and
Canacona are chosen to source the raw material. Identify the best location amongst the
two with respect to transportation costs using Gravity Location Model. The data is as
shown below:

Transportation Cost Quantity (in Coordinates

Sources/Markets Y
(Rs/km) units) X

Supply

Goa Electronics,
6 120 40 85
Mapusa

Metals Goa Limited,

5 100 40 65
Margao

Goa Spares & Parts,

4 90 60 45
Canacona

Markets

Pernem 8 35 40 105

Panaji 9 50 30 85

Vasco 6 65 40 75

Ponda 7 65 50 75

Q5 (10 marks)
b) Shruti Computers, Goa purchase 50,000 pieces of pen drives from Sharad and Co.,
Pune per year at a price of Rs. 400 per piece. Sharad and Co. ships each Shruti
Computers order within two days of receiving it. Demand has been constant for several
years and is expected to stay that way. Shruti computers, Goa carries safety Inventory
equal to 50% of average demand during delivery lead-time and annual holding cost 25%
of cost per pen drive. Transportation proposals of various carriers have been received
by the plant manager of Shruti computers who has decided to include inventory costs in
the transportation decision as transportation decision affects the cycle, safety and
in transit inventory for Shruti Computers. Analyze the best transportation option from
the proposals received. If the plant manager wants the second lowest option to get the
contract, by what amount should that carrier reduce his shipping cost per piece?

Lot Size (in Shipping Cost Transit Time

Carrier
pieces) (Rs/piece) (Days)

India Fast
400 7 6
Transport

Hindustan
600 8 7
Carriers

Bharat Logistics 800 9 5

Q7 (10 marks)
a) An automobile manufacture wants to select the best supplier to supply rear view
mirror assembly from their probable supplier list based on four criteria i.e. cost,
quality, lead time and capacity. The weights for criteria and rating of each supplier
for criteria given by experts are tabulated as shown below. There are three suppliers
in the list who supply the assembly as per the specifications namely supplier A, B and
C. The purchase manager has hired you as a consultant to select the best supplier
amongst the three options. As an expert in solving multi-criteria decision-making
problems, kindly evaluate the problem using TOPSIS and assist the purchase manager to
select the best supplier amongst the given option considering cost and lead time as
non-beneficial and quality and capacity as beneficial criteria.

Cost Quality Lead Time Capacity

Weightage 0.5 0.3 0.2 0.1

A 5 5 5 5

B 3 3 3 3

C 4 4 4 4

Q8 (10 marks)
a) eV Motors, Goa a well-known dealer serves to the demand of their e-bikes in the
entire Goa Area (disaggregate option). It presently has 04 retail outlets. Weekly
demand at each outlet is normally distributed with 10 e-bikes and a standard deviation
of 5. The lead time for replenishment from the manufacturer in L = 2 weeks. The cost
of each e-bike is Rs. 2,00,000/- and the holding cost is 25%. Calculate the
disaggregate safety inventory. eV Motors is considering the possibility of replacing
the 04 retail outlets with a single large outlet (Aggregate option). Assuming the
demand in the central outlet would be the sum of the demand across all four areas,
calculate aggregate inventory and the savings in holding cost resulting from
aggregation. The dealership has a target CSL of 0.90.

Q8 (10 marks)
b) Demand for a product is 10000 items per year. The company incurs a holding cost of
10% and a fixed order placement, transportation and receiving cost of Rs 300. The
price charged by the manufacturer varies according to the all-units discount pricing
schedule as shown. Evaluate the number of items to be ordered in each lot.

Order Quantity Unit Price (Rs.)

0- 1000 20.00

1000 - 2000 18.00

2000 and more 16.00