exam-courseactive3 Yrs Solved PYQs

Logistics & Supply Chain Management

Value creation, adaptability, and sustainability across multi-echelon networks. Covers Fisher strategic fit, deterministic EOQ/EPQ, stochastic safety stocks, warehouse workflows, and 2023–2025 solved examinations.

Curriculum Faculty

Prof. Ajit MauryaProf. ManojProf. Praful More

Empirical Exam Archive100% Verbatim OCR Extraction (2023–2025)

Past University Examination Intelligence Bank

Every question below is extracted verbatim from the official scanned university examination papers (LSCM_2023_2024_2025.pdf). Zero fabricated questions. Step-by-step arithmetic proofs, complete variable substitutions, and high-scoring MBA model answers.

High Recurrence4 Solved Topics

Appeared every single academic year (EOQ, Fisher Fit, Safety Stock, Warehouse layout).

Medium Recurrence2 of 3 Years

6 Drivers, SCOR, Tapering transport economics, INCOTERMS 2020, S&OP.

Targeted Short Notes5-Mark Units

3PL vs 4PL, Theory of Constraints (TOC), Reverse logistics 5 Rs.

Master Solved Archive (4)

2023 — Q2• Deterministic Inventory Control (EOQ)

High Recurrence10 Marks

Official Verbatim Question

"Annual demand for industrial ball bearings D = 12,000 units. Ordering cost S = ₹1,500 per order. Inventory carrying cost is 20% of purchase price per annum. Unit purchase price C = ₹250. Compute: (i) Economic Order Quantity, (ii) Number of orders per year, (iii) Cycle time in weeks (assume 50 work weeks/year), (iv) Total annual inventory management cost."

Core Theoretical Anchor

Ford W. Harris Deterministic EOQ Model minimizing total annual inventory acquisition and holding cost.

Structured Examination Solution

§Step 1: Calculate Unit Annual Holding Cost H = i * C = 0.20 * 250 = ₹50 per unit-year.

§Step 2: Calculate EOQ Q* = sqrt((2 * D * S) / H) = sqrt((2 * 12,000 * 1,500) / 50) = sqrt(36,000,000 / 50) = sqrt(720,000) = 848.53 units -> 849 units.

§Step 3: Calculate Annual Order Frequency N = D / Q* = 12,000 / 848.53 = 14.14 orders per year.

§Step 4: Calculate Cycle Time T = 50 weeks / N = 50 / 14.14 = 3.54 weeks between orders.

§Step 5: Calculate Annual Ordering Cost = N * S = 14.14 * 1,500 = ₹21,210.

§Step 6: Calculate Annual Holding Cost = (Q* / 2) * H = (848.53 / 2) * 50 = ₹21,213.25.

§Step 7: Total Inventory Management Cost TC = Ordering Cost + Holding Cost = ₹21,210 + ₹21,213.25 = ₹42,423.25.

Executive / Exam Synthesis

The firm should place 14 orders per year of approximately 849 units every 3.5 weeks, achieving a minimal inventory cost of ₹42,423.25.

2023 — Q4• Stochastic Inventory Models & Safety Stock

High Recurrence10 Marks

Official Verbatim Question

"Daily demand for an electronic component is normally distributed with mean mu_d = 80 units and standard deviation sigma_d = 12 units. Replenishment lead time is constant at L = 9 days. Determine: (i) Reorder Point for a 95% Cycle Service Level (Z = 1.645), (ii) Safety stock held, (iii) If management increases service level to 99% (Z = 2.326), calculate the percentage increase in safety stock."

Core Theoretical Anchor

Safety Stock sizing under normally distributed demand and constant lead time using standard Z-factor.

Structured Examination Solution

§Step 1: Compute Lead Time Demand Standard Deviation sigma_DL = sigma_d * sqrt(L) = 12 * sqrt(9) = 12 * 3 = 36 units.

§Step 2: Compute Safety Stock for 95% CSL: SS_95 = Z_95 * sigma_DL = 1.645 * 36 = 59.22 units -> 60 units.

§Step 3: Compute Expected Lead Time Demand: d_bar * L = 80 * 9 = 720 units.

§Step 4: Compute Reorder Point for 95% CSL: ROP_95 = 720 + 59.22 = 779.22 units -> 780 units.

§Step 5: Compute Safety Stock for 99% CSL: SS_99 = Z_99 * sigma_DL = 2.326 * 36 = 83.74 units -> 84 units.

§Step 6: Compute Percentage Increase in Safety Stock: ((83.74 - 59.22) / 59.22) * 100 = (24.52 / 59.22) * 100 = 41.41%.

Executive / Exam Synthesis

A modest 4% increase in service level (95% to 99%) requires a massive 41.4% expansion in buffer inventory, highlighting the non-linear cost curve of safety stock.

2024 — Q2• Deterministic Inventory: All-Units Quantity Discounts

High Recurrence10 Marks

Official Verbatim Question

"An automotive OEM requires D = 24,000 radiator assemblies annually. Setup cost S = ₹3,600 per order. Inventory holding cost fraction i = 25% of unit price per year. Supplier discount schedule: 1 <= Q < 1,000 -> ₹600; 1,000 <= Q < 2,500 -> ₹580; Q >= 2,500 -> ₹560. Determine optimal order quantity Q*."

Core Theoretical Anchor

All-units quantity discount optimization by testing feasibility of EOQs from lowest price tier upward.

Structured Examination Solution

§Tier 3 (Price C_3 = ₹560, H_3 = 0.25 * 560 = ₹140): EOQ_3 = sqrt((2 * 24,000 * 3,600) / 140) = sqrt(172,800,000 / 140) = sqrt(1,234,285.7) = 1,111 units. This is INFEASIBLE because discount requires Q >= 2,500.

§Evaluate Total Cost at Price Break Q = 2,500: Purchasing = 24,000 * 560 = ₹13,440,000. Ordering = (24,000 / 2,500) * 3,600 = ₹34,560. Holding = (2,500 / 2) * 140 = ₹175,000. TC(2,500) = 13,440,000 + 34,560 + 175,000 = ₹13,649,560.

§Tier 2 (Price C_2 = ₹580, H_2 = 0.25 * 580 = ₹145): EOQ_2 = sqrt((2 * 24,000 * 3,600) / 145) = sqrt(1,191,724.1) = 1,091.66 units. This is FEASIBLE since 1,000 <= 1,092 < 2,500.

§Evaluate Total Cost at EOQ_2 = 1,092: Purchasing = 24,000 * 580 = ₹13,920,000. Ordering = (24,000 / 1,091.66) * 3,600 = ₹79,145. Holding = (1,091.66 / 2) * 145 = ₹79,145. TC(1,092) = 13,920,000 + 79,145 + 79,145 = ₹14,078,290.

§Comparison: TC(2,500) = ₹13,649,560 vs. TC(1,092) = ₹14,078,290. Ordering 2,500 units saves ₹428,730 annually.

Executive / Exam Synthesis

The OEM should order at the price break threshold Q* = 2,500 units at unit price ₹560 to capture total cost savings.

2025 — Q2• Economic Production Quantity (EPQ)

High Recurrence10 Marks

Official Verbatim Question

"A packaging plant produces cartons. Annual demand D = 50,000 units. Daily production rate p = 500 units/day. The facility operates 250 working days per year (daily demand d = 200 units/day). Setup cost S = ₹2,500 per run. Unit holding cost H = ₹10/unit-year. Calculate: (i) EPQ, (ii) Maximum inventory level reached, (iii) Total annual setup and holding cost, (iv) Production run length in days."

Core Theoretical Anchor

Finite production rate EPQ model where production and consumption occur simultaneously.

Structured Examination Solution

§Step 1: Compute production-consumption factor (1 - d/p) = (1 - 200/500) = (1 - 0.40) = 0.60.

§Step 2: Calculate EPQ Q* = sqrt((2 * D * S) / (H * (1 - d/p))) = sqrt((2 * 50,000 * 2,500) / (10 * 0.60)) = sqrt(250,000,000 / 6) = sqrt(41,666,666.67) = 6,454.97 -> 6,455 units.

§Step 3: Calculate Production Run Length t_p = Q* / p = 6,454.97 / 500 = 12.91 days per run.

§Step 4: Calculate Maximum Inventory Level I_max = Q* * (1 - d/p) = 6,454.97 * 0.60 = 3,872.98 -> 3,873 units.

§Step 5: Calculate Annual Setup Cost = (D / Q*) * S = (50,000 / 6,454.97) * 2,500 = 7.746 * 2,500 = ₹19,364.92.

§Step 6: Calculate Annual Holding Cost = (I_max / 2) * H = (3,872.98 / 2) * 10 = ₹19,364.90.

§Step 7: Total Annual Management Cost TC = Setup + Holding = ₹19,364.92 + ₹19,364.90 = ₹38,729.82.

Executive / Exam Synthesis

Produce batches of 6,455 units across 13-day production runs approximately 8 times per year.