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EXAM 2018, questions

Introduction to Logistics and Supply Chain Management (RMIT)

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PLEASE NOTE THAT THE FOLLOWING QUESTIONS ARE PROVIDED AS SAMPLE

QUESTIONS ONLY, AND MAY / MAY NOT APPEAR IN THE FINAL EXAM PAPER.

EXAM COVER SHEET

NOTE: DO NOT REMOVE this exam

paper from the exam venue

EXAM DETAILS
Course Code: OMGT1082
Course Description: Intro to Logistics & SCM
Date of exam: XXXX Start time of exam: XXXXX Duration of exam: 2hr 15min
Total number of pages (incl. this cover sheet) Exam (Including Appendix) - 4 Pages
ALLOWABLE MATERIALS AND INSTRUCTIONS TO CANDIDATES

1. Write your full name and student number on each exam booklet together with the number of exam books used.

2. Students must not write, mark in any way any exam materials, read any other text other than the exam paper or
do any calculations during reading time.

3. All mobile phones must be switched off and placed under your desk. You are in breach of exam conditions if it is
on your person (ie. pocket).

4. This is a CLOSED BOOK Exam.

5. Commence each question on a new page. Carry out the instructions on the front cover of the exam script book
and the front of this exam paper.

6. Non text storing calculators are allowed.

7. Bi-lingual dictionaries are not allowed.

8. This exam paper contains: Sections A & B. Refer to instructions in each section.

9. This exam paper is worth 100 marks & comprises 40% of the total marks allocated in this course.

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Section A (5*12=60 Marks)

INSTRUCTIONS
Students are required to answer ANY FIVE (5) questions from the following SEVEN questions. All
questions are worth 12 marks each. If relevant, part marks are indicated in the question. Start every
question on a new page in your script book. Each question should be answered within 30o words.

QUESTION 1
(12 Marks)
Describe the importance of demand management for effective supply chain management.

QUESTION 2
There are four types of products and services that are purchased with varying degrees of importance.
Name all four, and choose two to discuss in terms of risk and value.
(12 Marks)
QUESTION 3
Outsourcing is a popular supply chain strategy. Elaborate the reasons for and against companies that
outsource their production process.
(12 Marks)
QUESTION 4
A. The selection of suppliers is an important integral component of any procurement process. Explain the
importance of selecting appropriate suppliers for supply chain management.
(6 Marks)
B. Explain one global trend that increases the complexities of modern supply chain.

(6 Marks)
QUESTION 5
Explain the role and importance of reverse logistics in contemporary supply chains.
(12 Marks)
QUESTION 6
Physical distribution has a special relationship to marketing. What is the nature of the relationship
between logistics and marketing?
(12
Marks)
QUESTION 7
Explain the role of transportation in the logistics management and supply chain management.
(12 Marks)
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Section B (40 Marks)

INSTRUCTIONS
Section B is worth 40 marks and contains Two (2) compulsory questions. Questions are worth 20
marks each. If relevant, part marks are indicated in the question. Start every question on a new page
in your script book.

QUESTION 8
A. Discuss the role of information in the supply chain and how it supports supply chain planning and
execution. (10 marks)
B. Discuss how seasonality can affect inventory. (10 marks)

QUESTION 9
Samsung’s flagship mobile phone product, S8 was just launched recently. One component material
that Samsung requires for the manufacturing of its S8 mobile phones is the microprocessor chip.
The information for the annual use of the microprocessor chips are given below:
 Number of pallets used in a year: 6000
 Number of microprocessor chips in a pallet: 360
 Unit price of microprocessor chip: $20.00
 Inventory carrying cost (annual): 10%
 Cost per order to replenish inventory: USD $2400.00
 In-transit inventory carrying cost: 15%
 Transit time using rail carrier: 9 days
 Transit time using motor carrier: 3 days
 Rail rate: USD$72.00 per pallet
 Motor rate: USD$128.00 per pallet
 Weight per pallet: 100.00 kg

Refer to the information given. Demonstrate your working clearly (also include the formula/s used) and give
your answer to the nearest whole number:
A. Calculate the EOQ (Economic Order Quantity).
(4 Marks)
B. How many pallets are required for the EOQ calculated?
(4 Marks)
C. How much is the ordering cost per year?
( 4 Marks)
D. What is the total cost (not considering transportation-related costs) of the EOQ?
( 4 Marks)

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E. Explain, with the help of a graph, the relationship between carrying cost and order cost to achieve the
optimal total inventory carry cost.
(4 Marks)

Appendix A – EOQ Formulas

Simple TAC

1 R or 1 R
TAC  QVW  A TAC  QS  A
2 Q 2 Q

TAC for Inventory in Transit

1 R tm or 1 R tm
TAC  QVW  A  QVY TAC  QVW  A  RVY
2 Q t 2 Q 360

Solving for Q (EOQ) gives the following expressions:

2RA or 2RA
Q  Q 
VW S

Where:
R = annual rate of demand
Q = quantity ordered (lot size in units)
A = order or setup cost
V = value or cost of one unit in dollars
W = carrying cost per dollar value in percent
S = VW = annual storage cost in $/unit per year
Y = cost of carrying inventory in transit
t = time in days
tm = inventory transit time
TAC = total annual costs in dollars per year

< End of Paper >

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