TYBMS SEM 5 Logistics & Supply Chain Management (November 2025 Question Paper with Solution)

 Paper/Subject Code: 46001/Logistics & Supply Chain Management

TYBMS SEM 5

Logistics & Supply Chain Management

(November 2025 Question Paper with Solution)

Course: TYBMS

Semester : V

Subject : Logistics & SCM

University : University of Mumbai

Exam : November 2025

Introduction

This article provides the TYBMS Semester 5 Logistics & SCM question paper for the November 2025 examination along with detailed solutions. The solutions are explained step-by-step to help students understand the method used to solve each problem and prepare for their university examination.

Q.P.	Link
November 2018	Solution
April 2019	Solution
November 2019	Solution
November 2022	Solution
April 2023	Solution
November 2023	Solution
April 2025	Solution
November 2025	Solution

NOTE:

1) All Questions are compulsory with internal choice options and carry 15 marks each.

2) Figures to the right indicate full marks

3) Use of simple Calculator is allowed

4) Working note should form part of your answer for practical questions.

Q.1) A) Choose the correct option (Any 8):            (08)

1) Logistics is the decision to buy logistics services from external so than operate in house.

(a) Reverse, 

(b) Green, 

(c) Outsourcing, 

(d) Standard

2) _________ warehouse is a combination of both private and public warehouse.

(a) Agricultural, 

(b) Cold chain, 

(c) Custom, 

(d) Contractual

3) ________ is not an objective of inventory management.

(a) Minimising waste, 

(b) Optimum utilisation of space,

(c) Blockage of investment, 

(d) Avoid over ordering

4) The primary goal of the __________ logistics cycle is to move products or materials backward through the distribution network. 

(a) Green, 

(b) Reverse, 

(c) Inbound, 

(d) Outbound

5) Lack of communication between members of supply chain leads to ________ effect.

(a) Miscommunication, 

(b) Bull-Whip, 

(c) Classical, 

(d) Bad

6) In method of demand forecasting an attempt is made to develop forecast through group consensus.

(a) Delphi 

(b) Naive

(c) Consumer Survey

(d) Regression

7) A unit train is also known ________ train.

(a) Resident, 

(b) Flat far, 

(c) Block, 

(d) Freight

8) Elimination of waste is an important characteristic of ________ supply chain.

(a) Lean

(b) Hybrid

(c) Agile

(d) Global

9) is not an LT. related tool used in Logistics. 

(a) EDI, 

(b) RFID, 

(c) ERP, 

(d) S-OS

10) The main objective of is to reduce the number of times the product is handled 

(a) Packaging, 

(b) Transportation, 

(c) Material Handling, 

(d) Warehousing

Q.1) b) True or False (Any 7):    (07)

1) Deep water ports are ports which has the capability to accommodate a fully loaded ship.

Ans: True

2) Consumer packaging aims at attractive appeal and information sharing.

Ans: True

3) TOFC is a type of Fishy back.

Ans: True

4) Transportation creates time utility.

Ans: False

5) COFC stands for Container on Flat car.

Ans: True

6) Ensuring perfect order is one of the objective of Packaging function.

Ans: False

7) Double stack container is form of intermodal freight transport.

Ans: True

8) Outbound logistics deals with procurement of spare parts and raw materials.

Ans: False

9) Maritime logistics involves shipment of goods (cargo) and people by waterways.

Ans: True

10) Regression analysis is a qualitative method of demand forecasting,

Ans: False

Q.2) a) Explain the concept of Logistics with the help of any 6 functions of Logistics.     (08)

Logistics is that part of supply chain process that plans, implements and controls the flow of goods, services and related information from the point of origin to the point of consumption. This process consists of various independent and dependent functions which needs proper planning, execution and control. The major logistical functions are explained below.

1. Order Processing: The activities of logistics begin with a receipt of a purchase order from the buyer via mail, telephone, email or sometimes the order is placed by suppliers on behalf of his customers. After receipt of an order, the next step is order processing i.e. refers to activities associated with receipt of an order and delivering goods to the customer with proper documents. Order processing involves order ready for delivery, order delivery and order status reporting.

2. Warehousing: This is an important function of logistics and include activities like: 

(i) Provide storage facility to raw materials and finished product. 

(ii) Provide facilities like consolidation, grading, branding packaging, protection of goods, etc. 

(iii) Balance demand and supply of raw material to production unit and finished product to marked.

(iv) Maintain minimum balance of inventory. 

(v) Effective utilisation of warehouse space and take measures to minimise warehouse operating cost.

Now highly automated, computerised material handling and centralised warehouses are available on rental basis for selection.

3. Inventory Management: Inventory is a major logistics function in which adequate level of inventory is maintained to meet customer demand and smooth flow of production. The major issue is how to strike a balance between carry too less or too much inventory. Now, just in time is one of those effective inventory systems which enables to keep stock at very low level. This helps to optimise storage space usage at reduced cost.

4. Transportation: Transportation is the most important function of logistics because it affects delivery performance, product pricing conditions of arrived goods and also the level of consumer satisfaction From logistics view point, a firm is required to decide the basic question i.e. whether to have own fleet of trucks or outsource transport activity. Now use of containers, intermodal transport, RORO ships double stack cargo trains are becoming popular modes of transport which saves time and transport cost.

5. Material Handling: Material handling is the movement, protection storage and control of raw materials and finished products throughout manufacturing, warehousing, distribution, consumption and disposal of material and product. Material handling has direct impact on working in warehouse, manufacturing plants, distribution centre and logistics costs.

6. Logistical Packaging: Logistical packaging is of two types: (a) Product packaging which the customer sees on the shelf of a retail store and (b) Transport packaging where products are packed in bulk so as to avoid any breakage, damage during transit. In recent years concepts like green logistics, reverse logistics have also added a new dimension to traditional meaning of packaging.

7. Information Flow: Information is the lifeblood of logistics and supply chain management. The prime function of logistics is to allow free movement of goods and faster and effective flow of information among the supply chain members. Use of computers and information technology for order processing, data storage and retrieval, cargo tracking are very helpful to improve communication and information flow.

8. Other functions/Activities of logistics are customer service, demand forecasting, procurement, production planning, product design and development.

Logistics is a critical component of supply chain management that involves the planning, execution, and control of the movement and storage of goods, services, and information. It ensures that products are delivered to the right place, at the right time, and in the right condition.

b) What do you mean by Warehousing? Explain Warehousing Strategies

MEANING AND DEFINITION OF WAREHOUSING

A warehouse is a place which stores goods on a large-scale basis in a systematic and orderly manner and makes them available conveniently when needed. According to Robert Hughes, "Warehousing is a set of activities that are involved in receiving and storing goods and preparing them for 'shipment".

Warehousing is not just storage of goods but involves variety of activities such as receiving, identifying, holding, assembling and dispatching as per the demand.

Warehouses are used by all types of business organisations and is one of the most important function of logistics supply chain management.

A warehousing strategy signifies selecting the right geographical sites and the number of warehouses required to achieve objectives like place and time utility, enhancing sales and marketing, reducing the cost and improving market presence Most organisations use a combination of public, private and contras yearly needs while a public warehouse may be used for peak sea requirements.

Importance/Need/Benefits of Warehousing Strategy

1. A warehouse strategy gives the organisation cost as well as servic benefits. It helps the organisation to deliver its products by minimisire the cost and reducing the transportation time.

2. A strategically selected warehouse helps the organisation in gaining time and place utility thereby, adding the value to the producs delivered to the customers. It enables to deliver the product at the right time, at the right price and quantities and at the place the customer wants.

3. An organisation can cater to the fluctuating nature of demand and maintain steady flow of supply.

4. Efficient warehousing strategy, helps an organisation to deal with the competition in the market effectively.

5. Warehousing strategy can help in achieving overall objectives of the organisation-in terms of customer service level and availability of products to customers at minimum cost of product distribution.

Forms of Warehousing Strategies

Formation of warehousing strategy encompasses decisions regarding following three factors: (1) Location Strategy, (2) Number and Size Strategy and (3) Type of Warehouse Strategy

1. LOCATION STRATEGY

Selecting the right location of the warehouse is indeed a challenging task The best location is one which can deliver the products to the customers ahead of its competitors, reduces the travel time and minimises the overall cost. Finding such a warehouse location is a strategic decision and may require careful consideration of many factors such as:

(i) Nearness to present and potential customers' base.

(ii) Connectivity to the supply points or manufacturing bases.

(iii) Transport connectivity such as roads, airports, docks or railways

(iv) Network of distributors or retailers who can deliver the products at customer's doorsteps.

(v) Availability of skilled and capable workforce who can carry out material handling efficiently in warehouse.

(vi) Availability of other infrastructure such as internet, electricity, etc.

NUMBER AND SIZE OF WAREHOUSE 

operate from a Once the location is selected, the next strategic decision is to decide the number and size of the warehouse, i.e., whether an organisation should single facility location i.e. centralised or multi-site i.e. decentralised. It is very difficult to design and implement either of the two strategies. Given the fluctuating nature of the customer demand, organisations focus on the transportation cost and the fixed facility costs while selecting single or multiple warehouses. Besides cost, there are many other factors which an organisation should consider before answering the issue of number and size of warehouses.

Nature of the product and its sales in each market

(i) Geographical spread of the market

(iii) The extent of seasonality of demand

(iv) Time required to replenish the stocks in the warehouse

(v) The level of peak demand

(vi) Other distributors and retailers outlets serviced by each warehouse.

(vii) Future markets and competitions.

(viii) Cost of operating each warehouse.

The decision on the size of the warehouse is generally taken along with the total number of warehouses. Here also the cost factor is the main consideration, for obvious reasons like:

(i) As the number of warehouses increase, the inventory carrying cost increases but the transportation cost and the cost of lost sales decreases.

() As a general rule, warehouse size and costs are inversely interrelated. So, small-sized warehouses are uneconomic compared to larger ones.

(i) If sales projected in a particular market area are small, warehouse size has to be small.

(iv) While deciding the size of the warehouse, volume of sales, desired market share in the area and operating cost of each warehouse should be considered.

3. TYPES OF WAREHOUSE STRATEGY

This relates to selection of private/public/contract/centralised requirements. As already discussed earlier each type of warehouse offer some benefits and limitations. An organisation has to carefully select the decentralised warehouse that can fulfil the firm's storage and type of warehouse considering the following factors.

(i) Characteristics of products, such as size, weight, dimension, etc.

(ii) The proximity of a warehouse to means of transportation.

(iii) Space availability to store, manage and move goods.

(iv) Ability to store goods that are sensitive to environmental condition such as temperature and humidity.

(v) Licenses and certifications to address trade permits and other legalities.

While framing warehouse strategy, there are five qualitative decisions are to be made.

(i) Presence Synergy: This refers to marketing benefits of locating the inventory nearby the customers. This benefit is best offered by private or contract warehouses.

(ii) Industry Synergies: This refers to benefit of collaborating with other firms in the industry and serving the customers. The public and contract warehouses provide the benefit of industry synergy.

(iii) Operating Flexibility: This refers to the benefit of exercising contri over warehousing and inventory control functions. This means flexibility in the operations. Private warehouse offer this benefit.

(iv) Location Flexibility: This refers to benefit of changing or adjusting the warehouse location as per the changing demands for the product. Public and contract warehouses offer location flexibility.

(v) Scale Economies: This refers to the cost advantage obtained b efficient storage space utilisation and use of advanced material handling techniques, thereby reducing the cost.

"OR"

c) From the following data calculate a 4 period weighted moving average with weights as 4, 3, 2 and 1. The largest weight is assigned to most recent period and current demand value. Also forecast the demand for 9 month.                 (10)

Period (months)	1	2	3	4	5	6	7	8	9
Demand in units	100	120	130	135	145	150	160	175	?

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Period (months)	Demand in units	4 Period Moving	4 Period Moving  Average
1	100	-
2	120	-
3	130	-
4	135	-
5	145	485	127
6	150	530	136.5
7	160	560	143.5
8	175	590	151.5
9	?	630	162.5

d) Explain the concept of packaging with the help of its any four functions.        (05)

MEANING AND DEFINITION OF PACKAGING

Packaging is a process of preparing goods for safe, secure, convenient handling, transport, distribution, storage, selling, consumption, reuse or disposal of waste. With the development of packaging logistics concept, the definition and scope of packaging has also been enlarged and many other allied and inter-related services have been added to the definition of packaging. Logistical packaging is defined as:

1. "Logistical packaging is the science, art and technology of ensuring safety and protecting product against spoilage, preserving the original qualities of the product for distribution, storage, sale and use. It also refers to process of designing, evaluating utility and production of packages."

2. "Packaging logistics uses a system approach to examine all the essential roles of packaging in supply chain, from the purchase of raw materials to production to sale of goods, as well as transport and distribution."

FUNCTIONS/BENEFITS OF PACKAGING

The following are the important functions of packaging.

1. Product Identification: Packaging serves as a means to distinguish or identify the product in an already crowded market. Unique design Packaging size, shape, coloured container, etc. are used to make the product unique, noticeable and different in the competitive market. For example, Maggi 2 Minutes Noodles. It's rectangular shape, yellow colour and picture of bowl full of ready to eat noodles makes it attractive and unique in its category.

2. Product Protection: The main function of packaging is to protect product against temperature fluctuation (ice cream), vibration (TV). protection against fungus (for camera lens), spoilage (milk and vegetables), dirt, insects, breakage, etc.

3. Kissan Pizza and Convenience: Packaging should be simple and easy to handle and transport from one place to another. For example, Kiss Pasta Sauce is available in bottle shaped plastic handy pouch which is easy to carry mainly in travelling. Packaging should enable retailers to store, display and sale goods without much difficulty.

4. Communication: This is an important function of logistical packaging.

This function is very important for cargo identification and tracking facility. Package contains information about manufacturer, product, type of container, Universal Product Code (UPC). The information is very useful to identify product for receiving order, picking, etc. Package also provides special handling instructions like side up, handle with care, hazardous chemicals, glassware, temperature instructions, storage considerations, etc.

5. Tracking: This facility enables to track the flow of goods from receiving, storing, retrieved and transported. This is an efficient and effective system of controlling pilferage, theft and monitoring material flow.

6. Logistical and Other Functions: Packaging functions can be further classified as under:

(a) Environmental Functions: Relates to reverse logistics, recycling, disposal of waste, use of eco-friendly and biodegradable packing materials.

(b) Logistical Functions: To ensure safety and security of product, easy of storing and handling, use of automation and technology in packaging logistics.

(c) Unitization : It is a process of consolidation of several units into one single unit to reduce material handling cost and ensure easy handling.

(d) Protection during transport and ease of transport.

(e) Display the original package for point of purchase advertising.

7. of Packaging Cost: Efficient logistics packaging helps in minimising losses in transit, improves the operating efficiency of material handling, transportation and better use of space utility. This result in remarkable reduction in packaging cost.

8. Apportionment: To apportion means to divide and share. On the basis of quantity/volume of buying, packaging should be designed to meet the consumer requirements. For example, floor cleaners for industrial buyers and hospitals is available in cans of 5 litres whereas for home users it is available in 500 ml or 1000 ml bottles.

9. Containment: Product package should provide adequate space to pack pre-determined volume. For example, for packing 500 ml milk, the correct size of pouch should allow adequate space plus some space for sealing. Packing 500 ml milk in 1 litre pouch is not advisable.

10. Other Functions: The other functions of packaging include promotion, information, easy handling, trouble-free transportation.

(Q.3) a) Explain the concept of Supply Chain Management with the help of steps involved in the process of supply chain Management.     (08)

A supply chain includes all functions like purchasing, manufacturing transporting, etc. involved in receiving a purchase order from customer and fulfilling the customer request. Alongwith basic functions like purchasing, manufacturing, other functions like: product development, marketing finance and customer service are also part of supply chain.

1. The Council of Supply Chain Management Professionals' define SCM as "planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. It also includes co-ordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers".

2. "Supply chain management is the process and activity of sourcing the raw materials or components an enterprise needs to create a product or service and deliver that product or service to customers."

Steps Involved in Supply Chain Management

The process of Supply Chain Management can be broken down into several key steps:

1. Planning

The first step in SCM involves strategic planning to align supply chain activities with business goals. This includes demand forecasting, inventory management, and resource allocation. Effective planning ensures that the supply chain operates smoothly and meets customer demands.

2. Sourcing

Sourcing involves identifying and selecting suppliers who will provide the goods and services needed for production. This step includes negotiating contracts, establishing payment terms, and building relationships with suppliers. The goal is to ensure a reliable supply of quality materials at competitive prices.

3. Manufacturing

Once the materials are sourced, the next step is manufacturing. This involves converting raw materials into finished products. Efficient manufacturing processes are crucial for minimizing costs and maximizing output. This step also includes quality control measures to ensure that products meet specified standards.

4. Logistics

Logistics encompasses the transportation and storage of goods throughout the supply chain. This step involves managing the movement of products from suppliers to manufacturers, and from manufacturers to customers. Effective logistics management ensures timely delivery and minimizes transportation costs.

5. Delivery

The delivery step focuses on fulfilling customer orders and ensuring that products reach their final destination. This includes order processing, packaging, and shipping. A well-organized delivery system enhances customer satisfaction and builds brand loyalty.

6. Returns Management

Returns management, or reverse logistics, involves handling returned products. This step is essential for maintaining customer satisfaction and managing inventory effectively. It includes processing returns, refurbishing products, and managing waste.

7. Collaboration and Communication

Throughout the supply chain, collaboration and communication among all stakeholders are vital. This includes sharing information about inventory levels, demand forecasts, and production schedules. Effective communication helps to identify potential issues early and facilitates quicker decision-making.

8. Performance Measurement

The final step in SCM involves measuring the performance of the supply chain. Key performance indicators (KPIs) such as order accuracy, delivery time, and inventory turnover are used to assess efficiency and effectiveness. Continuous monitoring allows businesses to identify areas for improvement and implement necessary changes.

b) What is Inter Modal Transportation? Explain various Inter Modal Combinations.        (07)

Intermodal transportation refers to the use of two or more modes of transport (like railway and road) carriers to transport goods from one place to another. For transporting cargo, special standardised containers are used for intermodal transport of cargo on trucks, freight trains and container ships. The basic purpose of multiple mode of transportation is to have benefits of each mode of transport and provide integrated service at the lowest possible cost. Use of multiple modes of transportation is a result of use of standardised containers which can be moved easily from railway wagon to onboard the ship or truck without loading and unloading cargo

Intermodal Combinations

2.1. Rail and Truck

This combination involves transporting goods by rail for the long-distance segment and using trucks for the final delivery.

Benefits:

• Cost-effective for long distances.

• Reduced carbon footprint compared to road-only transport.

• Rail can handle large volumes of cargo.

2.2. Sea and Truck

Goods are shipped via sea freight to a port and then transported by truck to their final destination.

Benefits:

• Economical for international shipping.

• Ideal for large shipments over long distances.

• Flexibility in reaching inland locations.

2.3. Air and Truck

This combination utilizes air transport for rapid delivery over long distances, followed by truck transport for local distribution.

Benefits:

• Fastest mode for long-distance transport.

• Suitable for high-value or time-sensitive goods.

• Reduces inventory holding costs.

2.4. Rail and Sea

Goods are transported by sea to a port and then transferred to rail for inland distribution.

Benefits:

• Efficient for large volumes of cargo.

• Cost-effective for long-distance transport.

• Reduces congestion on roads.

2.5. Air and Sea

This combination is less common but involves shipping goods by air for urgent needs and by sea for less time-sensitive deliveries.

Benefits:

• Balances speed and cost.

• Can be used for different segments of the same shipment.

• Flexibility in logistics planning.

3. Advantages of Intermodal Transportation

• Cost Efficiency: By selecting the most economical mode for each leg of the journey, companies can significantly reduce transportation costs.

• Environmental Benefits: Utilizing rail and sea transport can lower greenhouse gas emissions compared to road transport.

• Flexibility: Intermodal systems can adapt to changing logistics needs, allowing for better route planning and cargo management.

• Improved Delivery Times: Combining modes can optimize transit times, especially for time-sensitive shipments.

"OR"

Q.3) c) What do you mean by customer service? Explain 7R's for achieving perfect order.    (08)

Customer service is a critical component of any business that focuses on meeting the needs and expectations of customers. It encompasses all interactions between a company and its customers, aiming to provide support, resolve issues, and enhance the overall customer experience. Effective customer service not only fosters customer loyalty but also drives business growth and reputation.

The Importance of Customer Service

Customer service is more than just answering queries or resolving complaints; it is about building relationships and trust with customers. A strong customer service strategy can lead to:

• Increased customer satisfaction
• Higher retention rates
• Positive word-of-mouth marketing
• Competitive advantage in the marketplace

In today's fast-paced environment, where consumers have numerous options, exceptional customer service can differentiate a brand and create lasting loyalty.

The 7R's for Achieving Perfect Order

The 7R's framework is a strategic approach that helps businesses ensure they meet customer expectations effectively. Each "R" represents a key element that contributes to delivering a perfect order. Here’s a breakdown of each component:

1. Right Product

Ensuring that the customer receives the correct product is fundamental to customer satisfaction. This involves:

• Accurate inventory management
• Clear product descriptions
• Regular updates on product availability

By providing the right product, businesses can minimize returns and enhance customer trust.

2. Right Quantity

Delivering the correct quantity of products is equally important. This means:

• Understanding customer orders precisely
• Implementing effective order processing systems
• Regularly reviewing order fulfillment processes

Getting the quantity right prevents customer frustration and reinforces reliability.

3. Right Condition

Products should arrive in perfect condition. This includes:

• Proper packaging to prevent damage during transit
• Quality checks before dispatch
• Clear communication regarding handling procedures

Ensuring the right condition of products enhances customer satisfaction and reduces complaints.

4. Right Place

The location where the product is delivered must align with customer expectations. This involves:

• Efficient logistics and distribution channels
• Accurate address verification
• Timely updates on delivery status

Delivering to the right place ensures that customers receive their orders without unnecessary delays.

5. Right Time

Timeliness is a crucial aspect of customer service. Businesses should focus on:

• Setting realistic delivery timelines
• Communicating expected delivery dates
• Implementing efficient supply chain management

Delivering products on time builds trust and enhances the overall customer experience.

6. Right Cost

The cost of products and services should be transparent and fair. This includes:

• Clear pricing structures
• No hidden fees
• Competitive pricing strategies

Customers appreciate value for their money, and transparent pricing can lead to repeat business.

7. Right Customer Service

Finally, providing excellent customer service is essential for achieving a perfect order. This involves:

• Training staff to handle inquiries and complaints effectively
• Offering multiple channels for customer support (e.g., phone, email, chat)
• Actively seeking customer feedback for continuous improvement

Exceptional customer service can turn a one-time buyer into a loyal customer.

d) What are different Global Logistics trends? Justify with examples.    (07)

In the rapidly evolving landscape of global logistics, various trends are shaping the way goods are transported, stored, and delivered.

1. Digital Transformation

The integration of digital technologies into logistics operations is a major trend. Companies are leveraging technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics to enhance efficiency and visibility.

Example: Amazon uses AI algorithms to optimize its supply chain, predicting demand and managing inventory levels. This allows for faster delivery times and reduced operational costs.

2. Sustainability and Green Logistics

With increasing awareness of environmental issues, companies are adopting sustainable practices in logistics. This includes using eco-friendly packaging, optimizing transportation routes, and investing in electric vehicles.

Example: Unilever has committed to reducing its carbon footprint by using renewable energy sources in its logistics operations and optimizing its supply chain to minimize waste.

3. E-commerce Growth

The rise of e-commerce has transformed logistics, necessitating faster and more flexible delivery options. Companies are adapting their logistics strategies to meet the demands of online shoppers.

Example: Companies like Shopify are providing logistics solutions that integrate with e-commerce platforms, enabling businesses to manage inventory and fulfill orders efficiently.

4. Automation and Robotics

Automation is becoming increasingly prevalent in warehouses and distribution centers. Robotics and automated systems are being used to streamline operations, reduce labor costs, and improve accuracy.

Example: Ocado, a UK-based online grocery retailer, employs robotic systems in its warehouses to pick and pack orders, significantly increasing efficiency and reducing human error.

5. Last-Mile Delivery Innovations

The last mile of delivery is often the most challenging and costly part of the logistics process. Companies are exploring innovative solutions to enhance last-mile delivery efficiency.

Example: Companies like DoorDash and Uber Eats have developed advanced logistics platforms that utilize gig economy workers for rapid last-mile delivery, allowing for greater flexibility and speed.

6. Blockchain Technology

Blockchain technology is being explored for its potential to enhance transparency and security in supply chains. It allows for real-time tracking of goods and verification of transactions.

Example: IBM and Maersk have collaborated on a blockchain platform called TradeLens, which enables stakeholders to share shipping data securely and transparently, reducing delays and improving efficiency.

7. Resilience and Risk Management

The COVID-19 pandemic highlighted the importance of resilience in logistics. Companies are now focusing on risk management strategies to prepare for disruptions in the supply chain.

Example: Companies like Procter & Gamble have diversified their supplier base and increased inventory levels to mitigate risks associated with supply chain disruptions.

8. Global Trade Dynamics

Changes in global trade policies and tariffs are influencing logistics strategies. Companies must adapt to shifting regulations and trade agreements to maintain competitiveness.

Example: The US-China trade war prompted many companies to reevaluate their supply chains, with some relocating manufacturing to countries with more favorable trade conditions.

9. Omnichannel Logistics

The integration of multiple sales channels is becoming essential for retailers. Omnichannel logistics allows companies to provide a seamless shopping experience across online and offline platforms.

Example: Walmart has implemented an omnichannel strategy that enables customers to order online and pick up in-store, enhancing convenience and reducing delivery times.

10. Workforce Development and Training

As logistics becomes more technologically advanced, there is a growing need for skilled workers. Companies are investing in workforce development and training programs to equip employees with the necessary skills.

Example: DHL has launched various training initiatives to upskill its workforce in areas such as data analytics and automation, ensuring that employees are prepared for the future of logistics.

Q.4) a) Distinguish Between 3PL and 4PL.            (08)

Ans: 

Third-party logistics (3PL) and fourth-party logistics (4PL) are both types of logistics service providers, but they differ in terms of the scope of services offered and the level of integration and oversight they provide. Here's a distinction between 3PL and 4PL logistics:

1. Definition:

- 3PL (Third-Party Logistics): A 3PL provider is a company that offers logistics services to other businesses. These services can include transportation, warehousing, distribution, freight forwarding, customs brokerage, and other value-added services. 3PL providers typically manage specific functions or activities within the supply chain on behalf of their clients.

- 4PL (Fourth-Party Logistics): A 4PL provider is an organization that manages and coordinates the entire supply chain on behalf of a client. Unlike 3PL providers, which focus on specific logistics functions, 4PL providers take a more strategic and holistic approach, overseeing multiple logistics activities and integrating various service providers to optimize the supply chain.

2. Scope of Services:

- 3PL: 3PL providers offer a wide range of logistics services tailored to the specific needs of their clients. These services can vary from basic transportation and warehousing to more specialized offerings such as inventory management, order fulfillment, reverse logistics, and supply chain optimization.

- 4PL: 4PL providers offer comprehensive supply chain management services that go beyond traditional logistics functions. They coordinate and integrate various logistics activities, including transportation, warehousing, inventory management, procurement, and distribution, as well as strategic planning, vendor management, and performance monitoring.

3. Level of Integration:

- 3PL: 3PL providers typically operate as external partners or vendors that supplement a company's internal logistics capabilities. They may work independently or in conjunction with the client's logistics team but do not have full visibility or control over the entire supply chain.

- 4PL: 4PL providers act as strategic partners that oversee and integrate all aspects of the supply chain, including internal and external resources, processes, and technologies. They collaborate closely with the client's management team to develop customized logistics solutions and drive continuous improvement across the supply chain.

4. Example:

- 3PL: FedEx, UPS, DHL, and XPO Logistics are examples of 3PL providers. These companies offer a range of transportation, warehousing, and logistics services to businesses across various industries.

- 4PL: Accenture, DHL Supply Chain Solutions, Penske Logistics, and Maersk Line are examples of 4PL providers. These companies specialize in providing end-to-end supply chain management services, including strategic planning, network optimization, and vendor collaboration, to help clients achieve their supply chain goals.

b) Explain in detail role of Pipeline and Ropeways mode of transportation in building a sustainable economy.                    (07)

As the world grapples with the challenges of climate change and resource depletion, the need for sustainable modes of transportation has never been more critical. Among the various alternatives, pipelines and ropeways stand out for their unique advantages in terms of efficiency, environmental impact, and cost-effectiveness.

Pipelines: 

1. Efficient Transportation of Resources

Pipelines are primarily used for transporting liquids and gases, such as oil, natural gas, and water. They offer several advantages:

• High Capacity: Pipelines can transport large volumes of resources over long distances with minimal energy consumption.

• Reduced Traffic Congestion: By moving resources underground or through dedicated routes, pipelines alleviate road congestion, leading to lower emissions from vehicles.

2. Lower Environmental Impact

Pipelines are designed to minimize environmental disruption:

• Minimal Land Use: Unlike roads or railways, pipelines require less land, reducing habitat fragmentation.

• Reduced Emissions: Transporting resources via pipelines generates significantly lower greenhouse gas emissions compared to trucks or trains.

3. Safety and Reliability

Pipelines are generally safer than other transport modes:

• Lower Accident Rates: The risk of accidents is lower, as pipelines are less prone to collisions and human error.

• Continuous Flow: Pipelines can operate continuously, ensuring a steady supply of resources without the delays associated with other transport methods.

Ropeways: 

1. Overcoming Geographic Barriers

Ropeways, or aerial tramways, are particularly effective in mountainous or rugged terrains:

• Access to Remote Areas: They provide essential connectivity to remote regions, facilitating trade and tourism.

• Minimal Ground Disruption: Ropeways have a smaller physical footprint compared to roads, preserving the natural landscape.

2. Energy Efficiency

Ropeways are known for their energy efficiency:

• Low Energy Consumption: They require less energy to operate compared to traditional transport modes, especially when powered by renewable energy sources.

• Gravity Utilization: Many ropeway systems utilize gravity, reducing the need for additional energy input.

3. Eco-Friendly Transportation

Ropeways contribute to a sustainable economy in various ways:

• Reduced Carbon Footprint: By providing an alternative to road transport, ropeways help decrease emissions.

• Promotion of Eco-Tourism: They can enhance tourism in natural areas, promoting conservation and sustainable practices.

 

"OR"

Q.4) c) Explain the concept of EOQ with the help of a diagram and solve the sum on EOQ. The annual demand of an item is 4200 units. The unit cost is Rs. 8. The inventory carrying rate is 30%. The cost of procurement is Rs. 200. Calculate EOQ.                (10)

Click Here for Solution

What is EOQ?

The Economic Order Quantity (EOQ) is the ideal order quantity a company should purchase to minimize its inventory costs. These costs include ordering costs (costs associated with placing and receiving orders) and holding costs (costs related to storing unsold goods). The EOQ model helps businesses maintain a balance between these costs, ensuring they do not overstock or understock items.

EOQ Formula

The EOQ can be calculated using the following formula:

EOQ = Square root 2DS / H

Where:

• $D$ = Annual demand
• $S$ = Ordering cost per order
• $H$ = Carrying cost per unit per year

Diagram of EOQ

Below is a simple diagram illustrating the relationship between ordering costs, holding costs, and total inventory costs:

In the diagram:

• The downward slope represents the ordering costs decreasing as order quantity increases.

• The upward slope represents holding costs increasing with larger order quantities.

• The point where the two curves intersect represents the EOQ, where total costs are minimized.

Given Data

• Annual Demand $D = 4200$ units
• Ordering Cost $S = 200$
  
• Unit Cost = Rs. 8
• Carrying Rate = 30%

So,
Carrying Cost per unit $H = 30\% \times 8 = 2.4$

d) Explain the concepts: (i) Logistics parks, (ii) Dedicated Freight Corridor.        (05)

Logistics Parks

Definition

Logistics parks are specialized zones designed to facilitate the efficient movement, storage, and distribution of goods. These parks typically encompass a range of facilities, including warehouses, distribution centers, and transportation hubs, all strategically located to optimize logistics operations.

Functions

1. Consolidation and Distribution: Logistics parks serve as central points where goods can be consolidated before distribution to various destinations. This reduces transportation costs and improves delivery times.

2. Multi-modal Connectivity: They often provide access to multiple modes of transport, such as road, rail, and sometimes air, allowing for seamless transfer of goods between different transport systems.

3. Value-Added Services: Many logistics parks offer additional services such as packaging, labeling, and inventory management, which enhance the overall efficiency of supply chain operations.

4. Infrastructure Development: These parks are equipped with advanced infrastructure, including state-of-the-art technology for tracking and managing inventory, which further streamlines logistics processes.

Benefits

• Cost Efficiency: By consolidating operations in a single location, businesses can reduce overhead costs associated with transportation and warehousing.

• Time Savings: Proximity to key transport routes and hubs allows for quicker turnaround times, improving overall service levels.

• Scalability: Logistics parks can accommodate businesses of varying sizes, providing flexibility for growth and expansion.

• Sustainability: Many logistics parks are designed with sustainability in mind, incorporating green technologies and practices that minimize environmental impact.

Dedicated Freight Corridor (DFC)

Definition

A Dedicated Freight Corridor (DFC) refers to a specialized railway line designed exclusively for freight transport. Unlike traditional railways that accommodate both passenger and freight services, DFCs are dedicated solely to the movement of goods, allowing for more efficient and faster transportation.

Functions

1. Freight Optimization: DFCs are engineered to handle high volumes of freight traffic, ensuring that goods can be transported quickly and reliably.

2. Reduced Congestion: By separating freight from passenger services, DFCs help alleviate congestion on traditional rail lines, leading to improved service for both freight and passenger trains.

3. Enhanced Safety: Dedicated lines reduce the risk of accidents involving freight and passenger trains, contributing to safer rail operations.

4. Technological Integration: DFCs often incorporate advanced technologies such as automated signaling and real-time tracking systems, enhancing operational efficiency.

Benefits

• Increased Speed: DFCs enable faster transit times for freight, significantly reducing delivery schedules and improving supply chain responsiveness.

• Cost Reduction: With dedicated infrastructure, operational costs can be lowered, benefiting both logistics providers and end customers.

• Environmental Benefits: Rail transport is generally more energy-efficient than road transport, and DFCs contribute to reduced carbon emissions by promoting rail over road for freight movement.

• Economic Growth: By improving freight transport efficiency, DFCs can stimulate economic growth by facilitating trade and commerce.

Q.5) a) Case Study: Supply Chain and Logistics Challenges in a Quick Company-     (15)

FlashCart is a fast-growing Quick Commerce (Q-commerce) startup that delivers groceries and essentials within 15-20 minutes across urban areas. It operates through a network of dark stores and a fleet of delivery riders. While the model attracted rapid user growth, the company soon faced major supply chain and logistics issues that began impacting service quality and profitability

A key challenge was inventory mismanagement at dark stores. Poor demand forecasting and lack of real-time stock visibility led to frequent stockouts of high-demand items and overstocking of slow-moving ones. This resulted in lost sales and declining customer satisfaction.

Last-mile delivery posed another problem. Delivery riders often faced delays due to traffic, inaccurate addresses, and lack of optimized routing, FlashCart's early systems did not support dynamic rider assignment or efficient route planning, leading to missed delivery targets and customer complaints.

Replenishment delays from central warehouses to dark stores further disrupted operations. Without scheduled restocking or proper vehicle planning, stores ran out of key products, increasing downtime and logistical costs.

The company also struggled during demand surges, especially during peak hours and bad weather. Limited rider availability, system overloads, and poor workforce planning led to late deliveries and high rider attrition. FlashCart's cost structure worsened due to high rider incentives, low batching efficiency, and low average order values-making the business model financially unsustainable.

To tackle these issues, FlashCart adopted Al-based demand forecasting, real-time inventory tracking, and route optimization software. It also introduced structured replenishment schedules, stirge prediction tools, and incentive-based staffing during peak hours. To improve profitability, the company increased minimum order values, batched deliveries more effectively, and removed unprofitable SKUs.

Within six months, these changes yielded significant results: stock-out rates dropped by 35%, on-time deliveries improved from 78% to 91%, and cost-per-delivery fell by 20%. Customer satisfaction (NPS) also rose significantly.

Ultra-fast delivery requires seamless coordination across inventory, logistics, and workforce planning. While the 15-minute model is attractive to consumers, sustainable growth depends on continuous optimization, efficient systems, and cost control.

Answer the below mentioned questions based on the above case:

1) What are the key operational components of Flashcart Q-Commerce firm? How does it aim to fulfil its 15-20-minute delivery promise?

Ans:

FlashCart’s operations are built around a few core components:

• Dark Stores: Small, strategically located warehouses in urban areas that store high-demand products close to customers. This reduces delivery distance and time.
• Inventory Management System: Tracks product availability and ensures essential items are stocked.
• Delivery Fleet (Riders): A network of delivery personnel responsible for last-mile delivery.
• Technology Platform: Includes order processing, real-time tracking, and routing systems.
• Central Warehouses: Supply goods to dark stores through replenishment cycles.

How it achieves fast delivery:

• Stores are located near customers (reducing travel time)
• Orders are processed instantly through the app
• Riders are assigned quickly to nearby orders
• Pre-stocked inventory avoids delays in picking
• Optimized routing ensures fastest delivery paths

2) What are the main supply chain and logistics problems faced by FlashCart? (05)

Ans:

Inventory Mismanagement: Poor forecasting led to stockouts of popular items and excess stock of slow-moving products.

Lack of Real-Time Visibility: No accurate tracking of inventory at dark stores.

Last-Mile Delivery Issues: Traffic delays, incorrect addresses, and inefficient routing caused late deliveries.

Replenishment Delays: No proper scheduling from central warehouses to dark stores, leading to stock shortages.

Demand Surge Handling Problems: During peak hours or bad weather, rider shortages and system overload occurred.

High Operational Costs: High rider incentives, low order values, and inefficient delivery batching increased costs.

Low Profitability: Inefficient cost structure made the business model unsustainable.

3) Highlight specific solutions related to problems of dark stores, inventory management, delivery, and cost efficiency.     (05)

Ans:

a) Dark Stores & Inventory Management

• Introduced AI-based demand forecasting to predict product demand accurately
• Implemented real-time inventory tracking systems
• Reduced unprofitable SKUs and optimized product assortment
• Balanced stock levels to avoid overstocking and stockouts

b) Delivery & Logistics

• Adopted route optimization software for faster deliveries
• Enabled dynamic rider assignment based on location
• Improved address accuracy and navigation support
• Increased delivery batching efficiency

c) Replenishment

• Introduced structured replenishment schedules
• Improved planning of vehicles and supply from central warehouses
• Ensured consistent stock availability at dark stores

d) Cost Efficiency & Workforce Management

• Increased minimum order value to improve margins
• Used surge prediction tools for better demand planning
• Introduced incentive-based staffing during peak hours
• Reduced cost-per-delivery through better planning and batching 

"OR"

Q.5) c) Write short notes on (Any 3):                (15)

1) RORO

Ans:

RORO stands for Roll On/Roll Off. It means specially designed ships are used for carrying wheeled cargo such as cars, trucks, semi-trailer trucks, trailers, railroad cars which can be driven on and off the ship on their wheels through a vehicle platform. In India, smaller ships, barges are used for carrying two wheelers, light cargo, small trucks, etc. for crossing the river or creek where road transport is not available/feasible. Similarly Indian railways also provide RORO facility for transporting trucks on railway wagons.

Benefits of RORO Transport

1. RORO is most suitable method for transport of oversized vehicles which are unable to fit in standard containers.

2. RORO is the simplest, quick, one of the cheapest, efficient and convenient mode of transporting vehicles internationally.

3. Now, the RORO ships not only carry passenger cars but also trucks, boats, buses, motor homes, cranes, tractors and other huge and heavy machinery.

4 RORO car shipping is beneficial to both importers and exporters because (a) the cargo is "rolled on" from the loading port and (b) "rolled-off" the ship at the destination port.

5. The RORO shipping facility is available in specific areas except this limitation RORO shipping provides a very quick and affordable means of international transport of wheeled charge because it can apply to any vehicle of any size.

6. It saves shippers time on loading and unloading and can also be integrated with other transport means like containers.

2) Reverse Logistics

Ans:

Reverse Logistics may be defined as "the practices and processes set up for organising product return from points of sale to the manufacturer in order to repair, recycle or dispose of these articles in the most cost effective way".

Reverse logistics is a system set up for managing product returns from the point of sales (distributors/consumer) to the manufacturer for repair, reuse, recycle or dispose of these goods in the most economical way.

Usually a customer returns the goods back to manufacturer because of following reasons: (i) Customer is not happy with the product. (ii) Product is defective or damaged and not in a condition to repair or reuse. (iii) Wholesaler has returned back unsold or overstocked goods. (iv) Mistake committed by company by sending wrong product or size or colour. (v) The manufacturer himself recalls defective product. For example Honda Motor Car company has recalled 1.6 million cars to replace Takata all over the world.

The work of reverse logistics begins after the company has received back has two options: (A) Rework on the product and make it worthy of sale the goods from the distributor or consumer. At this juncture the compar again and (B) Dispose or discard the product.

A. Rework and Make Product Saleable Again

Majority of the firms adopt reworking strategy to make product saleabl again. It make sense in working on finished product than to discard it and manufacture a new one. Normally, the following measures are taken to save the returned or recalled product.

(ⅰ) Repair: It means restoring something damaged, faulty to a good condition for resale. A defective part of a machine can be replaced and brought back to good condition.

(ii) Refurbish or Remanufacturing : T.V. sets, cameras, laptops which are used for testing, display or demonstration purpose are refurbished and resold. Such products are not defective but are used for some purpose and can be sold as refurbished product.

(iii) Recycle: It is a process of converting waste material into new materials and product. For example, waterproof shoes are made from recycled polyester, sole from reground EVA foam. Nylon, car tyres, newspaper and many used items are recycled for making new material/product.

(iv) Reuse: It means repetitive use of products already used once. The purpose of reuse is to minimise wastage and also minimise repeat production. Examples: Reuse of printer's ink cartridge, refillable water bottles, etc.

(v) Product Exchange: A manufacturer can offer the consumer (i) refund of money paid (ii) credit coupon or (iii) exchange of faulty product against a new one within warranty/guarantee period.

(vi) Other methods include offering unsold stock at discount, remanufactured products at lower price with terms of conditions and warranties, free use of product for certain period and many more.

B. Discard or Disposal of the Product

Disposal of waste products, chemicals, electronic goods, is the bigges challenge before all manufacturers and service providers. Some products are made for single use, some pharmaceutical and petroleum products are highly pollutants and needs special treatment. Single use products (like plastic bags, milk cans, bottles) can be recycled or disposed of as waste

Benefits of Reverse Logistics

Reverse logistics offer following benefits":

(i) Decreased Cost: Income from recycled and resold items help to cut down cost spent on reselling items again. Otherwise, it would lead to total loss. Reverse logistics enables to recover some part of operating cost.

(ii) Customer Satisfaction: Reverse logistics is one way of providing better after sales service. Companies which provide user friendly return policies like (a) full refund with/without receipt (b) replace or repair without strict conditions, etc. have better consumer satisfaction and loyalty.

(iii) Reduced Wastage: It helps to identify the causes for return of goods and identify ways to reuse, resell or recycle materials. This helps to reduce wastage and allows better use of resources.

(iv) Other Benefits include:

(a) Reduced environmental impact

(b) Improves brand's reputation for social responsibility and environmental awareness (c) Reduces losses and unplanned revenue

(d) Better utilisation of capital assets.

3) RFID and EDI

Ans:

Radio Frequency Identification (RFID): 

RFID refers to a technology whereby, digital data encoded in RFID tags or smart labels are captured by a data reader via radiowaves. The working of RFID is similar to barcode i.e. data from a tag/label are captured by a device. The only difference is RFID can be read outside the line-of-sight i.e. from a distance, whereas barcode must be read with scanner. RFID technology is used for following purposes.

(a) Asset tracking (b) Animals tracking (c) ID badging like passport (d) Supply chain management (e) High frequency RFID tags are used on books, jewellery, building access control, controlling access to restricted area (f) Airline baggage tracking.

Electronic Data Interchange (EDI):

In simple terms EDI is the computer to computer exchange or transfer of business documents in a standard electronic format. It is a better substitute for paper based invoices, challans, drawings which were earlier sent through mail, fax or courier service. With the help of EDI, these documents are transferred from one company to another or between buyer and supplier through computers.

Benefits of EDI:

(a) Reduces data entry errors and free from human interruption.

(b) Reduction in business transaction cost due to paperless operations.

(c) End to end use of EDI saves time and resources and improves operational efficiency.

(d) Provides competitive advantage and quicker customer service due to quick processing of customer orders

4) Activity Based Costing

Ans:

The ABC system can be described as, "ABC systems are designed and implemented on the premise that products consume activities, activities consume resources and resources consume costs". ABC system assigns costs to activities based on their consumption of resources and then activity costs are assigned to products or services in proportion to a selected measure to their individual workloads.

ABC is a costing method that identifies activities in an organisation and assigns the cost (charges of expenses) of each activity to all products and services according to actual consumption by each. In simple words, ABC may be defined as "a method of costing that assigns overhead and indirect cost to related products and services". The ABC system of costing is based on the concept that "to make a product a series of activities (like raw material buying, processing) of activities are necessary and all these activities consume cost". ABC is a system of costing which can be used to find out activity based cost to make a product.

Nature/ Features / Characteristics of ABC System

The following are the unique feature of ABC system of costing.

1. ABC is an activity based method of costing based on the activities that are essential to make a product, provide a service, etc. and these activities consume resources which require cost.

2. ABC, considers both direct and overhead cost that goes into making a product. Instead of allocating overhead cost equally among all products, ABC costing assigns to each product separately. Suppose a company is making fans i.e. table fans and ceiling fans. The testing time for both type of fans is different. Therefore, testing expenses are assigned on time basis rather than dividing equally among all products.

3. ABC system is based on activities and includes unit of work, or task with a specific goal, product/service.

4. ABC consider an activity as cost driver. For example, purchase order initiates activities to place an order and ends with receipt of goods.

5. The ABC system measures activity by 2 ways:

(i) Transaction Drivers: It counts how many times an activity occurs (Ex. Number of orders processed, number of items inspected, etc.)

(ii) Duration Drivers: Duration drivers measure the amount of time required to perform an activity. (Ex. Time required to inspect items or process orders.)

6. ABC first assigns costs to the activities and then assigns the cost of those activities only to the products that are actually demanding the activities. Suppose, the monthly electricity bill of a company is ₹50,000 for 2,500 hours. The cost driver is 50,000/2,500 = 20 per hour. Suppose A product uses 20 hours and B product uses 30 hours, so electricity bill for A will be 20 hours × 20 unit price = ₹400 and for B 30×20=600. This is how electricity bill is assigned on duration basis, instead of equally dividing between A and B product

5) Objectives of performance measurement

Ans:

The basic objective of performance measurement is to find out how far logistics network and supply chain management have been successful in

Achieving goals of organisations i.e. cost reduction, time saving effective inventory management, competitive advantage and consumer satisfaction. A brief explanation about need/ objectives of performance measurement sexplained below.

Measuring supply chain performance is extremely important for companies to keep supply change efficient, effective and competitive. If the supply chain is not strong and effective, it would adversely affect the company's competitive advantage. 

2 The three basic objectives for implementing performance measurement are

(i) Monitoring: It means tracking historical logistics system performance for reporting to higher authorities.

(ii) Controlling: To measure on-going performance and to take corrective steps to rectify abnormal situation to improve performance.

(iii) Directing: It means motivating employees to perform better by offering monetary and non-monetary incentives.

A major function of supply chain management is to co-ordinate and integrate the different activities taking place between all members of supply chain. A logistics performance measurement would help to find out how far the individual performance is integrated into a unified process.

Find out gaps between actual and expected performance, if any, and initiate corrective actions.

For easy understanding purpose, the performance measuring standards are divided into (a) internal and (b) external.

(a) Internal: Measures like lead time or on time performance are. used to evaluate one or two activities and not the complete supply chain.

(b) External: This is used to measure the performance of entire supply chain i.e. from supplier of raw materials to final consumers. For example, quality of customer service, competitive advantage which is a result of combined performance of all supply chain members.

6. To Update and Upgrade PMS: To make the PMS more responsive and effective, it is necessary to review and remove those criterion that are out of context, redundant and not consistent with logistics goals and objectives. This helps to establish useful criteria for logistic performance measurement.

7. To improve individual processes across the supply chain, gain competitive advantage through better service at lower costs.

8. To measure how effectively the customers' requirements are fulfilled and how efficiently resources have been utilised to achieve organisational goals.

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