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OM0012 – Supply Chain Management

OM0012 – Supply Chain Management


Summer 2013

Master of Business Administration- MBA Semester 3

OM 0012 – Supply Chain Management


Q1. It is necessary for Supply Chain managers to identify the obstacles to co-ordination in the Supply Chain so that they can take suitable actions that help achieve co-ordination. Explain the major categories of obstacles. (Incentive obstacles; Information processing obstacles; Operational obstacles; Pricing obstacles; Behavioral obstacles — 10 marks, i.e. 2 marks each) 10 Marks


Answer : Categories of obstacles in SCM :


1. Incentive obstacles:


There are always obstacles that hinder effective coordination in a supply chainLocal sub-optimization is a common incentive, in which members of a supply chain take actions to benefit themselves but not the entire chain. Another example is that the efficiency of a sales force might be appraised by the quantity of sales as compared with the companies next in the downstream supply chain but not as compared with end-users (final customers). In this case, sales size is hardly related to actual customer demand.


Q2. Write a note on assessment tool.

(Planning assessment- 1 mark; Sample Schedule for Conducting an Assessment — 3 marks; Description/Using an of assessment tool — 4 marks; Completing assessment tool-2 marks) 10 Marks


Answer :  Planning assessment :


Determining whether an assessment is appropriate and feasible depends on when the assessment is being conducted; the availability of adequate financial, human, and material resources; whether similar information can be obtained from already-existing sources; and stakeholder agreement.




Q3. How can differential advantage be achieved through Supply Chain Management?

(Competitive-forces approach — 2 marks; capabilities approach — 6 marks ; conclusion — 2 marks) 10 Marks


Answer : Approaches to achieve differential advantage in SCM :


There are basically two approaches to achieve differential advantage. These are :


1. Competitive-forces approach :


The Porter’s Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you’re considering moving into. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable.


Q4. Discuss the five basic components of Supply Chain Management.

 (5 components X 2 marks =unit 10) 10 Marks


Answer : Basic components of SCM :


Supply chain management (SCM) is a process used by companies to ensure that their supply chain is efficient and cost-effective. A supply chain is the collection of steps that a company takes to transform raw components into the final product. The following are five basic components of SCM.


1. Plan :


The first stage in supply chain management is known as plan. A plan or strategy must be developed to address how a given good or service will meet the needs of the customers. A significant portion of the strategy should focus on planning a profitable supply chain.


Q5. Explain Relationship Marketing’s impact on firms.

(7 impacts X 1.25 = 8.75 marks; conclusion — 1.25 marks) 10 Marks


Answer : Relationship Marketing’s impact on firms :


1. Centralization and Sharing of Data:


With  Relationship Management systems, data is stored in one centralized location, making it readily accessible to all members of an business or organization. This enables the company’s staff to more easily communicate with and market to their customers. If one sales person is on vacation, for instance, the information about his customers is available to the entire sales team, and they are able to pick up where he left off without jeopardizing a customer relationship.



Q6. The Global Supply Chain Forum (GSCF) framework consists of eight supply chain management processes. Explain them.

 (8 process X 1.25 marks)


Answer : Supply chain management processes of GSCF :


a. Customer service management process:


Customer relationship management concerns the relationship between an organization and its customers. Customer service is the source of customer information. It also provides the customer with real-time information on scheduling and product availability through interfaces with the company’s production and distribution operations.

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