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Supply Chain Management
April 2025 Examination
1. You are the Chief Operations
Officer of a growing e-commerce company struggling with high operational costs
and delivery delays. To address these challenges, your company is considering
outsourcing logistics and customer support services. Identify and analyze the
factors you would consider before selecting an outsourcing partner. Design a
strategy to monitor the performance of the outsourced processes and ensure
quality control and also discussed factors to be considered before selecting an
outsourcing partner. Propose measures to manage potential risks, such as data
security and loss of brand identity, while working with the outsourcing
partner. (10 Marks)
Ans
1.
Introduction
Outsourcing
logistics and customer support is a strategic decision for e-commerce companies
seeking to reduce operational costs and enhance delivery efficiency. By
collaborating with external service providers, businesses can leverage
specialized expertise, advanced technology, and economies of scale. However,
outsourcing poses significant risks such as data security breaches, service
quality inconsistency, and potential dilution of brand identity. As the Chief
Operations Officer of a
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2. Imagine you are a supply chain
manager for a popular consumer electronics brand. The company recently launched
a new product, and initial demand spikes have caused significant disruptions in
the supply chain. The manufacturing team has overproduced, leading to excess
inventory, while the retailers are now reporting declining sales. Identify the
factors that might have contributed to the bullwhip effect in this scenario.
Propose strategies to stabilize the supply chain and prevent similar
disruptions in the future. (10 Marks)
Ans 2.
Introduction
The
bullwhip effect is a common challenge in supply chain management, characterized
by increasing variability in demand forecasts as one moves upstream in the
supply chain. This phenomenon often leads to excessive inventory, stockouts,
and inefficiencies across the network. In the case of a popular consumer
electronics brand, the launch of a new product has resulted in initial demand
spikes, causing significant disruptions. While retailers are now experiencing
declining sales, the
3. You are the supply chain manager
for a global apparel brand that experiences significant variability in customer
demand due to seasonal trends. The company currently follows a push strategy,
manufacturing large volumes of products based on forecasted demand. However,
unsold inventory during off-seasons and stockouts during peak seasons have led
to inefficiencies and lost sales.
a. Analyze the challenges
associated with the current push-based approach in this scenario. (5 Marks)
Ans
3a.
Introduction
The
push-based strategy relies on forecasting demand and manufacturing products in
large volumes before they are sold. While this approach can be cost-effective
in stable demand conditions, it poses significant challenges for global apparel
brands dealing with seasonal demand variability. The mismatch between
forecasted and actual demand often leads to unsold inventory during off-seasons
and stockouts during peak seasons. These inefficiencies result in financial
losses, reduced customer
b. Propose how a hybrid push-pull
strategy could be implemented to balance inventory levels and meet customer
demand effectively. (5 Marks)
Ans
3b.
Introduction
The
hybrid push-pull strategy combines the strengths of both push and pull models
to address demand variability and optimize inventory management. Under this
approach, the initial stages of production are push-based, driven by forecasts,
while the final stages are pull-based, driven by actual customer demand. For
global apparel brands, this strategy offers a practical solution to balance
inventory
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