KAMLA LOHTIA SANATAN DHARAM COLLEGE

MST- MARCH, 2020

PAPER- PGDIB- BUSINESS LOGISTIC MANAGEMENT

Time Allowed: 3 hours Maximum Marks: 60

Note: Attempt five questions in all, including Question No. 1 which is compulsory and selecting one
question from each unit.

1. Multiple choice Questions. Attempt all the questions.

I. ________ is the time that elapses between issuing replenishment order and receiving the materials
in stores.
a. Replenishment Time c. Idle Time
b.Lead Time d. None of the above

II. Which of the following is not a part of Supply Chain Management?

a. Supplier c. Competitor
b.Manufacturer d. Customer

III. Distribution requirement planning is a system for

a. Inventory Management c. Both a and b
b.Distribution Planning d. None of the above

IV. 3-PL stands for

a. Three Points Logistic c. Three Points Location
b.Third Party Logistics d. None of the above

V. What system is used to signal a need for inventory in JIT?

a. Inventory Card c. Kaizen
b.Kanban System d. Toyota Production System

VI. Which term is used for short distance movement of inventory?

a. Transportation c. Material Processing
b.Material Handling d. Material Layout

VII. What do you mean by Multimodal transportation?

a. Moving goods using different vehicles 
b.Using new technology transportation routes
c. Direct loading from 1 delivery vehicle to another without storage
d.None of the above

VIII. The minimum stock level is calculated as

a. Reorder Level - (Normal Consumption X Normal Delivery time)
b.Reorder Level + (Normal Consumption X Normal Delivery time)
c. Reorder Level - (Normal Consumption/Normal Delivery time)
d.Reorder Level + (Normal Consumption/Normal Delivery time)

IX. A U.S. equipment manufacturer finds a less expensive source of supply in China for steel forgings
currently purchased from a United State’s supplier. The manufacturer switches from the U.S. to the
Chinese forging supplier. This is an example of which of the following important trends in
operations and supply chain management?
a. Electronic Commerce c. Radio Frequency & Identification (RFID)
 b.Increasing Competition & Globalisation d. Relationship Management

X. A network of manufacturers and service providers that work together to convert and move goods
from the raw materials stage through to the end user" is the definition of
a. Supply Chain c. Service operations
b.Operations Management d. Operations Function

XI. Which of these people work closely with manufacturing, marketing, and purchasing of
import/export supply chains?
a. Sourcing Manager c. Production Manager
b.Analyst d. International Logistics Manager

XII. Which of the following is not a component of Logistics?

a. Material Handling c. Sales Promotion
b.Packaging d. None of the above

XIII. Which of the following is not included in Warehousing Cost?

a. Storage Costs c. Transportation Costs
b.Administration Costs d. None of the above

XIV. Calculate EOQ: Annual Demand- 1000 units, Order Cost- Rs. 30, Holding Cost- 20% & Unit Cost-
Rs. 480.
a. 25 units c. 125 units
b.28 units d. 54.77 units

XV. When manufacturers and distributors partner together for delivery of goods to customer it is known
as:
a. Supply Chain c. Supply & Demand Chain
b.Channels of Distribution d. Value Delivery Network

XVI. Which of the following is not an area of responsibility for logistics manager?
a. Inventory c. Warehousing
b.Purchasing d. Marketing

XVII. What is a type of packaging?

a. Primary c. Secondary
b.Tertiary d. All of the above

XVIII. In supply chain, material flows in one direction where as _____ flows in both direction
a. Process c. Product
b.Information d. Service

XIX. A process for managing interactions with customer

a. Customer Relationship Management c. Customer Interactive Model
b.Supply Chain Management d. Customer Communications Channel

XX. Which is not a type of warehouse?

a. Buffer Storage Warehouse c. Cold Storage Warehouse
b.Bonded Warehouse d. None of the above 1 X 20= 20
 UNIT- I

2. Explain the meaning and importance of Logistics. How would you explain distribution as marketing
element?

3. Discuss the integration between logistics, marketing and distribution elements.

UNIT- II

4. What are the pros and cons of various transporting system?

5. Explain transportation administration and costing in relation to marketing function.

UNIT- III

6. Discuss the modern concepts & basic considerations for locating distribution houses.

7. A company uses 1000 items per month supplied ordinarily at a price of Rs. 3.00 per item. 
Carrying costs are 16% of the value of the average inventory.
The ordering costs are Rs. 20 per order. 
The supplier however offers discounts as per the table below:
Order size Price per item
Less than 2000 Rs. 3
2000 to 3999 Rs. 2.90
4000 or more Rs. 2.85
Calculate EOQ. Calculate total cost at EOQ.

UNIT- IV

8. What is order process? Explain its types and process in detail.

9. Explain customer service as well as its model for performance measurement.

10 X 4= 40