INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management
PAPER No. 12
Packaging Distribution
Date 18.06.2016 Max. Marks :100
Time 10.00 a.m to 1.00 pm Duration 3 Hrs.
Instructions:
1. From Part A Answer all questions (compulsory). Each sub questions carries 1 mark. Total 32 Marks
2. From Part B Answer any 3 questions out of 5. Each question carries 16 marks. Total 48 Marks
3. Part C is a case study (compulsory) with questions. Read the case study carefully and answer the questions
Total: 20 Marks
4. Please read the instructions given in the answer sheet
PART A 32 marks
Attempt all questions. Each sub questions carries 1 mark
Q. 1. Choose correct answer from multiple options 8 marks
Which of the following is not a logistical function of packaging
Containment Communication
c)Convenience Consumption
ii) Atta is available in the market in 2kg, 5kg and 10 kg pack sizes. This can be identified as
which function of packaging
Apportionment Containment
Communication Promotion
iii) Selection of packaging materials depends on all of the following except
Production volume Transportation methods
Climate Environmental considerations
iv) Package is used to protect fragile items
Strapping Cushioning
Taping Wrapping
Material Handling Institute identifies all of the following as material handling except
Motion Time
c)Quality Space
vi) Packaging economics has elements of packaging cost
Four three six seven
vii) Which of the following have common objective of moving goods from origin to destination
Shipper and consignee Shipper and carrier
Carrier and consignee Carrier and public
viii) Carrier that provide transport to select customers are called
Private carriers Common carriers
Contract carriers Public carriers
June 2016
Q. 2. Fill in the blank (Do not reproduce the statement). 8 marks
Basic product modified with new features to exceed customer expectations is called
product.
ii) Green dot on a packet indicate that the food contained is food.
iii) Ideal package from the point of view of transportation and material handling is a

iv) are devices used to seal bottles, jars, etc.
is sometimes referred to as "final mile".
vi) The two guiding principles of transportation are economy of scale and economy of

vii) Transportation cost can be optimized through .
viii) is not a document of title.
Q.3. State True or False (Do not reproduce the statement) 8 marks
a. Packaging is used to add value to a product.
b. The determining factors for the degree of protection are volume and fragility of the
product.
c. Principle of space utilization suggests making optimum use of available floor space.
d. AGV is an example of engineered material handling system.
e. Common carriers can offer service at discriminatory prices.
f. The price per kilogram to move specific product between two locations is referred to
as the rate.
g. Bill of exchange is filed at customs to clear import cargo.
h. Maximum insurance cover is provided by institute cargo clause C.
Q.4. Expand the following 8 marks
FMCG
MVB
CTD
SWMA
LTL
PLUS
TEU
IATA
PART B 48 marks
Answer any 3 questions out of 5. Each question carries 16 marks
Q.5. Describe in your own words what you understand by packaging.
Explain functions of packaging giving examples for each.
Q.6. Explain the functions of various ancillary packing materials.
Explain the concept of channels of distribution and network design
Q. 7. Differentiate between
Package sealing and package reinforcement
Packaging cost and packaging economics
Palletization and unitization
Bill of exchange and Bill of entry
Q.8. What are the roles of the players in transportation?
Explain different types of ships highlighting their advantages.
Q.9. Write short notes on any four
Material handling principles
Declaration and labeling
RFID
Transport economics
Dangerous cargo
PART C
20 marks
Q. 10) Case Study- compulsory
John Vance, President of Vanity Products, is reading the latest financial results reported in the company
newsletter. Every time he reads this year's financials, he recalls the company's early days and the struggle
to get retailers to stock his new line of bathroom vanities, mirrors and light fixtures. Today, the company is
straining to produce enough products to meet retailer demand.
Vanity Products manufactures a variety of bathroom accessories, including vanities (medicine chest),
mirrors, lighting fixtures and shelving. The products are made of rust-and chip-resistant molded plastic and
come in a variety of modern designs and colors. The plastic construction permits VP to produce a highquality
bathroom accessory at an affordable price.
In the middle of 1990s, John focused the company's marketing attention on the large home centre chain
stores: Home Depot, Walmart, Sears and so on. Today, more than 80 percent of VPs sales are to these
retail chains, and they account for 95 percent of its growth. Without these chain customers, VP would be a
small, struggling manufacturer.
John's pleasant memories quickly fade to the realities of dealing with these large-chain retailers. In the
past two years, VP has been required to install EDI software that permits the buyers to assess VPs
inventory data file to determine availability, to place orders and to verify shipment status. The latest
demand from one of the chains, which is a precursor of what the others will want, is for VP to reduce cycle
time by shipping orders directly to the stores.
Currently, VP receives an order that is a consolidation of store orders to be served from a chain
distribution warehouse. The order is sent in truckload quantity to the distribution warehouse, where the
individual store is broken out and sent to the store. Now, each store will be ordering separately, and VP is
to deliver the order within five working days.
When John approached Tom White, Manager of logistics, with the latest demand, Tom was not very
comforting. He indicated that freight costs would certainly increase because VP would be shipping lessthan-
truckload quantities at higher freight rates. This higher freight cost could be offset with freight
consolidation software that combines stores shipments into truckload quantities for peddle runs. John liked
the idea of keeping freight costs down, because VP would have great difficulty increasing prices because
of increasing competition.
However the freight consolidation strategy would increase the shipment holding time prior to dispatch,
thereby making it difficult for VP to meet the requirement that orders be delivered in five working days.
Since cycle time reduction is the primary objective of the chain store's demand, any process adding to the
delivery time would not be acceptable.
Tom is working on an idea to establish a series of distribution warehouses in the market areas where the
chain stores are located. Tom's vision includes truckload shipments from the plants to the distribution
centers and cross-docking of products from incoming trucks delivering orders to specific stores. In
addition, each distribution warehouse would maintain a minimal level of inventory to meet emergency
orders placed by local stores.
John is skeptical of Tom's distribution warehouse idea because he feels it would increase capital costs,
inventory levels and transportation costs. He is not even certain it would meet the delivery time
requirements.
Questions:
Is John's apprehension right? Analyze.
ii) Analyze the growth of Vanity Products from the point of view of distribution.
iii) In your opinion what VP should do to reduce cycle time?