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Birla Institute of Technology & Science, Pilani Distance Learning Programmes Division First Semester 2007-2008 Comprehensive Examination (EC-2 Regular) Course No. Course Title Nature of Exam Weightage Duration Date of Exam Note: 1. 2. 3. 4.

: QMJ ZG621 : SUPPLY CHAIN MANAGEMENT : Open Book : 60% : 3 Hours : 30/09/2007 (AN)

No. of Pages =2 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. Mobile phones and computers of any kind should not be brought inside the examination hall. Use of any unfair means will result in severe disciplinary action.

Q.1 (a). Q.1 (b). Q.1 (c). Q.2

In what way do supply chain flows affect the success or failure of a firm like Amazon? List two supply chain decisions that have a significant impact on supply chain profitability. How can a home delivery company like peapod use pricing of its delivery services to improve its profitability? What types of industries or situations are best suited to each pure strategy for developing aggregate planning? Give your answer with proper justification. [5 + 5 + 5 = 15]

Prefab, a furniture manufacturer, uses 20,000 square feet of plywood per month. Their trucking company charges Prefab $800 per shipment independent of the quantity purchased. The manufacturer offers an all unit quantity discount with a price of $1 per square foot for orders under 20,000 square feet, $0.98 per square fit for orders between 20,000 square feet and 40,000 square feet and $0.96 per square foot for orders larger than 40,000 square feet. Prefab incurs a holding cost of 20 percent. What is the optimal lot size for Prefab? What is the annual cost of such a policy? What is the inventory if the manufacturer did not offer a quantity discount but sold all plywood at $0.96 per square foot? [7] Why is Amazon.com able to provide a large variety of books and...
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