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Birla Institute of Technology & Science, Pilani Distance Learning Programmes Division First Semester 2007-2008 Comprehensive Examination (EC-2 Regular) Course No. Course Title Nature of Exam Weightage Duration Date of Exam Note: 1. 2. 3. 4. : QMJ ZG621 : SUPPLY CHAIN MANAGEMENT : Open Book : 60% : 3 Hours : 30/09/2007 (AN) No. of Pages =2 No. of Questions = 7 Please follow all the Instructions to Candidates given on the cover page of the answer book. All parts of a question should be answered consecutively. Each answer should start from a fresh page. Mobile phones and computers of any kind should not be brought inside the examination hall. Use of any unfair means will result in severe disciplinary action. Q.1 (a). Q.1 (b). Q.1 …show more content…

Each book costs on average $10 and the holding cost incurred by Books On-Line is 25 percent. Books On-Line replenishes inventory every week and aims for a 99.7 percent CSL. Assume a replenishment lead time of one week. A warehouse is designed to carry 50 percent more than the replenishment order +safety stock. The amortized fixed cost per year of warehouse is $100,000+x, where is x is the capacity in books. The weekly operating cot of a warehouse is $0.15y, where y is the number of books shipped. Books On-Line is planning its network strategy. Detail all costs involved if one warehouse will be there in the central zone. [10] What types of industries would be most likely to choose a best of breed approach to their IT systems? What types would be more likely to choose a single large integrated solution? What issues must be considered when designing a supply chain relationship to improve the [6 + 5 = 11] chances of developing cooperation and trust? Q.7 (a). Q.7 (b). ********* Page 2 of

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