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Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA SEMESTER 3 EXAMINATION WINTER 2018
Subject Code: 3539273 Date: 11/12/2018
Subject Name: Inventory Management, Material Planning and
Management
Time: 10:30 AM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Briefly discuss the following:
Zero inventory
Advantages of outsourcing
Material Requirement Planning
Work in progress inventory
Dependent and independent demand
Coding in materials management
Objectives of materials management
14
Q.2 Discuss the similarities and differences between fixed order versus fixed
inventory system.
07
Inventory is important for any manufacturing company. It should be
maintained properly. What are the various types of inventory required for
a manufacturing company?
07
OR
Which are the various inventory control techniques? Discuss with
example.
07
Q.3 Depict your understanding for modern MRP. Also discuss MRP-II. 07
It is important to prepare master production schedule to get an idea about
material management in the organization. How MPS is helpful in
materials management?
07
OR
Q.3 How distribution planning is useful in managing inventory at multiple
locations for an MNC?
07
What do you understand by JIT? In which industries sectors it is
advisable to go for JIT?
07
Q.4 How deterministic model is different from probabilistic model? Discuss
with suitable example.
07
Materials management is dependent on the organization structure. How
organization structure is impacting material management?
07
OR
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Q.4 Briefly discuss EOQ model of inventory management. 07
Write a note on strategic inventory management.
07
Q.5 Case Study
A car manufacturing company decided to have their new
manufacturing plant at West Bengal state of India with an intention
of manufacturing the lowest cost car, making it affordable for
everyone. Project execution team of the company started setting up
manufacturing facilities on war footing basis and almost after 50%
work was done and 60% time was consumed, due to the political
and legal environment of the business, Car company had to stop the
execution of the project.
After losing few more weeks as a part of conflict resolution
mechanism, both the government officials and company authorities
came to the conclusion that project will not be able to take shape at
this state and will not get executed further on that land.
After loosing sizable time and resources, company decided to shift the
manufacturing facility to another state (Gujarat). After doing so, the
major challenge company's board of director were facing that of
having production started on planned date as it was earlier and to do
so, how to expedite project of setting up manufacturing process.
The other major challenge was, as sizable resources (capital mainly)
were lost the process, Producing the car at the lowest cost was another
major challenge they were facing.
Third and important challenge for the company officials was to
maintain the consistency in quality in spite of expediting
manufacturing plant execution process and dropping the cost at every
stage. It is not easy for the top management to take decision.
Based on this information answer the following questions:
How materials management is helpful in addressing the problem of
execution of the plant at new site?
Due to the new location, how the company will manage the
customers and suppliers of raw materials?
OR
How inventory management is helpful in dropping the cost?
If you are appointed as an inventory manager, which techniques of
inventory management will you adopt and why? Justify your
answer.
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