MK0010- Sales, Distribution and Supply Chain Management

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ASSIGNMENT

DRIVE	FALL 2015
PROGRAM	MBADS (SEM 3/SEM 5)MBAFLEX/ MBA (SEM 3) PGDMMN (SEM 1)
SUBJECT CODE & NAME	MK0010- Sales, Distribution and Supply Chain Management
BK ID	B1721
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Q1. Why is distribution termed as the second half of marketing? Explain the different patterns of distribution.

Answer: Physical distribution is one of the unique functions of marketing. Once the function of exchange is completed, the physical distribution function is responsible for completing the marketing transaction. It involves the handling and moving of raw materials and finished goods from the producer to the final consumer. But the term physical distribution management refers to the process of designing and administering the systems to control the flow of goods. In general the function of physical distribution attempts to accomplish the delivery and is performed and managed by marketing such as dealers, merchants and mercantile agents

Physical distribution is the set of activities concerned with efficient movement of finished goods from the end of the production operation to the consumer. Physical distribution takes place within numerous wholesaling and retailing distribution channels, and includes such important decision areas as customer service, inventory control, materials handling, protective packaging, order procession, transportation, warehouse site sele

Q2. Who are called as Wholesalers? Explain different types of Wholesalers.

Answer: Wholesaler may be defined as the middlemen who operates between the producers (from whom they purchase goods) and the retailers (to whom they sell goods). Wholesaler refers to any individual or business firm selling goods in relatively large quantities to buyers(retailers) other than the ultimate consumers. Thus the manufacturers who sell their products directly to retailers may also be regarded as wholesalers. The specialised knowledge and skill of wholesalers increases the efficiency of the distribution network. The wholesalers provide important services and solve the problems of both the manufacturers and the retailers.

 1. Merchant Wholesalers:

Q3 An organization needs to be extremely cautious in making investments in various types of inventories. The extent of control required to be maintained on all items is not the same. Explain some important tools of Inventory management like ABC analysis, Just-In-Time & Economic order quantity model.

Answer: When people talk about an inventory management tool, it is easy to be confused. There is an unlimited number of subjects that deserve discussion as an inventory management tool. They fall into four categories:

1)                  software,

2)                  hardware,

3)                  theoretical management models, and

4)                  audit systems.

Having all four properly integrated and working

Q4 Explain the SCOR model with a diagrammatic representation.

Answer: SCOR model:- In collaboration with 69 members consisting of manufacturers, logistics / distribution service providers and software solutions suppliers Supply Chain Council introduced Supply Chain Operations Reference-model (SCOR). Numbers of companies have pooled their real-world supply chain experiences to build a flexible framework and a common language that can help companies improve their supply chain internally and externally

The model defines common supply chain management process, matches them against “best practices. It provides companies with powerful tool in improving supply chain operations. It allows manufacturers, suppliers, distributors and

Q5 When one member of distribution channel tries to maximize its profits at the expense of rest of the members, it will create conflicts, resulting in the decline of profits. To avoid these conflicts, now retail firms have started forming vertical Marketing systems (VMS). Explain the three types of VMS through which goods and services are usually distributed to customers.

Answer: A vendor management system (VMS) is an Internet-enabled, often Web-based application that acts as a mechanism for business to manage and procure staffing services – temporary, and, in some cases, permanent placement services – as well as outside contract or contingent labor. Typical features of a VMS application include order distribution, consolidated billing and significant enhancements in reporting capability that outperforms manual systems and processes.

A vertical marketing system (VMS) refers to a channel of distribution in which there is formal cooperation among members at the

Q6 Describe the supply chain Benchmarking Procedure.

Answer: Supply chain benchmarking is a management tool companies use to measure the efficiency and effectiveness of their supply chain. Supply chain benchmarking often focuses on how companies use a supply chain to benefit consumers, the costs associated with the supply chain, and the resources used to develop and deploy a consistent level of service by way of the supply chain.

A supply chain is an organizational system companies use to move consumer products from their warehouse to consumers. Supply chains often include a variety of different companies, such as delivery companies, warehouses, distributors, and retailers. Business owners and managers use benchmarking to compare their company's supply chain with a competing company's supply chain or the industry standard. Benchmarking is a management tool that allows companies to improve their operational performance.

A standard against which the performance of a security, mutual fund or investment manager can be measured. Generally, broad market and market-

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