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INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management
PAPER No. 11
LOGISTICS MANAGEMENT
Date 17.06.2016 Max. Marks :100
Time 10.00 a.m. to 1.00 p.m. Duration 3 Hrs.
Instructions:
1. PART A is compulsory. Answer all questions. Total marks 32
2. From PART answer any three questions. Each question carries 16 marks . Total marks 48
3. PART C is Case Study and is compulsory. Answer the questions reflecting through understanding of the case. Total marks 20
4. Please read instructions on the answer sheet carefully.
PART A 32x1 32 marks
(compulsory- Attempt all Questions each question carries 1 mark)
Q1. State TRUE or FALSE 1 Mark each Marks)
1. Actual routines to process data are called modules.
2. Intranet is a private network that operates within a company.
3. Bar codes are a manual identification system.
4. In functional organizations, operations are classified.
5. In one level channel, intermediaries between producer and consumer are absent.
6. Stowability is vehicle space utilization as reflected by product dimensions.
7. Decrease in per unit weight transportation cost with increase in shipment size
results in economies of scale.
8. Commodity warehouses handle bulk material.
Q2. Fill in the Blanks 1 Mark each Marks)
1. Materials management involves movement of inside a firm.
2. Variance are unexpected events that disturb system
3. logistics is the process of acquisition of materials.
4. No storage is involved in warehouse operations.
5. A freight elevator carries rather than passengers.
6. In-transit brings economics when plants are geographically separated.
7. In system, materials are stored close to their point of use.
8. Bulk movement of coal is done by carrier.
Q3. Expand the following abbreviations mark each) Marks)
1. FDI 2. ICD 3. PPP 4. TMS
5. SKU 6. UPC 7. CTM 8. 4PL
June 2016
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Q4. Match the following in column A with those in column B 1 Mark each
Marks)
Column A Column B
1. Centralization A Refilling activity
2. Distributor, wholesaler, retailor B Bulk material
3. Reusable package C Break Bulk
4. Gravity principle D Three level channel
5. Overhead material handling E Material handling
6. Commodity warehouse F Carousels
7. Transportation consolidation G Increased efficiency
8. Bins on oval track H Gantry cranes
PART B
Write any three of the following questions 16 marks each 48 Marks
Q5. Explain the concepts, importance and objectives of logistics.
Q6. Discuss topologies of supply chain, flows in supply chain and capacity buffers.
Q7. Explain the principles and objectives of material handling.
Q8. Explain the measures of efficiency and productivity in physical distribution systems.
Q9. Explain logistics information system flow and technology for logistics.
PART C (Compulsory) 20 Marks
Q. 10. CASE STUDY
Parcelforce Worldwide is part of the Royal Mail Group Ltd. Royal Mail Group has three main operating brands:
· The Post Office Ltd provides counter services to the high street customer
· Royal Mail manages the delivery of letters and packets
· Parcelforce Worldwide provides express parcel delivery services for businesses and consumers.
Parcelforce Worldwide has over 30,000 business customers in the UK. It handles 200,000 parcels a day. It has
a turnover of £382 million. In 2006-07, revenues grew by 7.3% over the previous year. With its 23 partners
across 30 European countries and access to Postal Administrations through the Universal Postal Union. It
operates:
· Business to Business services, delivering parcels and supplies from companies to other
companies
· Business to Consumer services, delivering parcels to individuals in their homes around the UK
Parcelforce Worldwide competes in a free or unregulated market. A free market is open to all. Any company
can choose to operate in the market and customers can choose any supplier they wish. Suppliers therefore
need to provide good value for money to keep customers and win new business.
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In 2002, Parcelforce Worldwide was making a loss. In response, those managing the business decided to
change the type of service it offered. Instead of unguaranteed parcel deliveries typically taking between two and
four days, Parcelforce Worldwide decided to focus on time and day guaranteed, express delivery. This resulted
in a reduction of the number of parcels handled (volume) but increased the value of each delivery to Parcelforce
Worldwide.
As a result of these changes, Parcelforce Worldwide also increased operational efficiency. The business:
· reduced the number of staff it employed
· closed some of its depots
· opened a new, technologically advanced sorting centre in Coventry
These changes enabled Parcelforce Worldwide to achieve its financial targets. It turned a loss-making business
into a profitable one. However, it recognised that more could be done to improve efficiency. The business
sought to improve staff attendance rates. It wanted to cut absenteeism staff taking unauthorised or sick leave
and reduce the time lost as a result of accidents at work. To do this, Parcelforce Worldwide introduced a more
decentralised approach to management. This gives depot managers greater decision-making accountability to
improve the effectiveness of the operation in their local area.
Most companies operating in the express parcel delivery market offer similar services. Parcelforce Worldwide
remains competitive by differentiating itself in other ways. Parcelforce Worldwide has developed a unique
selling proposition based on high-quality customer service.
This customer-orientated approach is designed to attract and retain key customers. Parcelforce Worldwide
works in partnership with customers, such as the UK's examination boards, to develop and deliver services to
meet specific needs. During exam season, Parcelforce Worldwide delivers millions of exam papers, scripts and
coursework.
Questions
Analyze the above case study and prepare a detailed note of your understanding about the case study and
examine how a strategy focused on customer service can contribute to long-term business development.