Question Paper for 3rd Sem

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Birla Institute of Technology & Science, Pilani
Distance Learning Programmes Division
First Semester 2008-2009
Comprehensive Examination (EC-2 Regular)
Course No.
Course Title
Nature of Exam
Date of Exam

: QMJ ZG621
: Open Book
: 60%
: 3 Hours
: 28/09/2008 (AN)

No. of Pages
No. of Questions = 7

Please follow all the Instructions to Candidates given on the cover page of the answer book. All parts of a question should be answered consecutively. Each answer should start from a fresh page. Leave about one inch margin space on all four sides of the answersheet. Mobile phones and computers of any kind should not be used inside the examination hall.


Discuss how you would set up a collaboration mechanism for the enterprises in a supply chain.


Consider a supermarket deciding on the size of its replenishment order from Proctor & Gamble. What costs should it take into account when making this decision?


Weekly demand for Motorola cell phones at Best Buy store is normally distributed with a mean of 300 and a standard deviation of 200. Motorola takes two weeks to supply a Best Buy order. Best Buy is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should Best Buy carry? What should their ROP be? [F-1(0.95) =1.643]



The Knitting Company (TKC) planning for its four styles those are popular during Christmas. All four styles have demand that is normally distributed. The bestselling style has an expected demand of 30,000 and a standard deviation of 5,000. Each of the other three styles has an expected demand of 8,000 with a standard deviation of 4,000.Currently all sweaters are produced before the start of the season. Production cost is $20 per sweater and they are sold for wholesale price to $35. Any unsold sweaters at the end of the season are discounted to $15 and they...
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