Sem: Sep-2024 Maximum Marks: 50 Examination: End Exam Date: Duration: 1.5 hrs
Programme code: Programme: MBA for working executive (program code-18)	Class: FY	Semester: II Batch-1 G&B (OPS&SCM)
College: K. J. Somaiya Institute of Management	Name of the department/Section/Center: Operations & SCM
Course Code:	Name of the Course: Logistics & SCM
Instructions: Q1 is compulsory

Question No.	Max. Marks
Q1	Case - Cool Air conditioners “Cool Air” Air conditioners is a manufacturer of commercial air-conditioning units which are exclusively used on the roof of malls and restaurants. Nearly 80 percent are replacement models which means that the company relies heavily on repeat customers. An air conditioner breaks down with little or no warning. Often the customer is under pressure on finding a replacement within a day or two to run his business. Therefore, the customer is mainly concerned with supplier response no matter who the supplier is. “Cool Air” Air conditioners hired “Reliable Logistics” a consulting company to help optimize their distribution network and revive sales. At that time, they had 20 distribution centers and warehouses around the country stocking 40 different models. “Reliable Logistics” first thought of shrinking the distribution network to four or five strategically located warehouses, each with extensive inventory. This strategy would have decreased “Cool Air” Air conditioners costs , but would have made rapid delivery tough. The marketing Manager of “Cool Air” Air conditioners suggested that the company should go in the opposite direction and expand to 30 locations with a full range of products. But that would have been prohibitively expensive. Questions What do think are the problems faced by “Cool Air” Air conditioners? Comment on the idea of “Reliable Logistics” to reduce the distribution centres/warehouses from 20 to 4 or 5 strategic locations. What would you suggest to ensure the local availability with minimum inventory for “Cool Air” Air conditioners in their distribution network?	10 marks
Q2	Answer any (two ) (5 marks each) Discuss the impact of inventory on the profitability of the company.? What are the various value added services done in a modern warehouse? Describe the types of supply chains and how do you make a supply chain effective.	10 marks
Q3	Write short notes on (any one) a) Containerization b) Vendor Managed inventory c) Reverse Logistics	5 Marks