Supply Chain Management, Term Eam Max Mark:60 Time: 2 hr All questions are compulsery Anewers should be precise ond to the peint Ne gueries regirding the poper will be entertained duning exom PARLA (Marks: 4+4-12) 1. a) HP has outsourced its manufacturing activities to third party electronic manufacturing service (EMS) companies like Flextronics but has kept sourcing activities in-house. Firms like Flextronics argue that since they buy inputs for a large number of clients, they have better economy of scale compared to HP, and HP may be better off by outsourcing sourcing activities to EMS companies. Why do you think HP wants to keep its control on sourcing? b) What factors enter into the choice of a value for the smoothing constant in exponential smoothing? c) Here are the actual tabulated demands for an item for a nine month period (January through September). Your supervisor wants to test two forecasting methods to see which method was better over this period. Month January February March Actual 110 130 150 170 160 Actual Month June Jul 140 130 140 August April September Ma a. Forecast April through September using a three month moving average b. Use simple exponential smoothing with an alpha of 0.3 to estimate April through September Use MAD to decide which method produces the better forecast over six month period c. (Marks : 10) 2. a) FMCG firm having a sales turnover of Rs 120 crores per tear is carrying 18 days finished goods inventory at any point of time. The firm is spending 3.5 per cent of its turnover on logistics operations. The breakup of logistics cost is: transportation 60 per cent, warehousing 20 per cent and administration 20 per cent. Supply Chain Management, Term Eam Max Mark:60 Time: 2 hr All questions are compulsery Anewers should be precise ond to the peint Ne gueries regirding the poper will be entertained duning exom PARLA (Marks: 4+4-12) 1. a) HP has outsourced its manufacturing activities to third party electronic manufacturing service (EMS) companies like Flextronics but has kept sourcing activities in-house. Firms like Flextronics argue that since they buy inputs for a large number of clients, they have better economy of scale compared to HP, and HP may be better off by outsourcing sourcing activities to EMS companies. Why do you think HP wants to keep its control on sourcing? b) What factors enter into the choice of a value for the smoothing constant in exponential smoothing? c) Here are the actual tabulated demands for an item for a nine month period (January through September). Your supervisor wants to test two forecasting methods to see which method was better over this period. Month January February March Actual 110 130 150 170 160 Actual Month June Jul 140 130 140 August April September Ma a. Forecast April through September using a three month moving average b. Use simple exponential smoothing with an alpha of 0.3 to estimate April through September Use MAD to decide which method produces the better forecast over six month period c. (Marks : 10) 2. a) FMCG firm having a sales turnover of Rs 120 crores per tear is carrying 18 days finished goods inventory at any point of time. The firm is spending 3.5 per cent of its turnover on logistics operations. The breakup of logistics cost is: transportation 60 per cent, warehousing 20 per cent and administration 20 per cent