Discuss the advantages of grading’s by peers.


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Operations Management


Case Studies
case study (20 Marks)
In August 2012, Amazon.com, the world's biggest online retailer, announced that it would introduce same day delivery of its orders as a service option to its customers and make next day delivery standard service. This move came in response to the regulatory changes in some states of the US that required consumers to pay sales tax, which in turn would strip it off its price advantage. In order to stay ahead of the competition, Amazon decided to cut its shipping time. In 2005, the company had introduced free two day shipping and discounted one day shipping rates in the US on eligible purchases for a flat annual fee under a service known as‘ Amazon Prime'. This case discusses Amazon.com's business model, supply chain, and its order delivery processes. In 2005, Amazon.com introduced a premium membership scheme called ‘Amazon Prime'. It was a free two day
shipping and discounted one day shipping rates service offered to the members in the US on eligible purchases for a flat annual fee of $79. Over the years, the service was extended to other countries like Japan, the UK, Germany, France, and Canada. In 2009, Amazon introduced same day delivery in 10 big cities in the US, which were close to Amazon warehouses. However, in August 2012, Amazon.com introduced same day delivery a an option and made next day delivery a standard service to all its customers. In 2013, Amazon.com was a Fortune 500 company and a global leader in ecommerce. It had a wide array of products, international sites, and a world wide network of fulfillment centers and warehouses and customer service centers. It had developed a customer base of around 30 million people. The company was a retailing site that followed a sales revenue model and made money by taking a small percentage of the sale price of each item sold through its website. It also allowed sellers to advertise their products by paying a fee... However, analysts were skeptical about the success of the model due to the impracticality of the model and logistical hurdles that the company could face. Apart from these problems, the delivery model also faced competition from other big and small players.

Answer the following question.

Q1. Discuss the issues and challenges in the logistics and supply chain management of retail and ecommerce businesses.

Q2. Explain the concept of ecommerce and its impact on traditional retail.

case study (20 Marks)
In 1953, the Government of India, under the Air Corporations Act, nationalized and merged the eight private airlines that existed then and created two State run airlines out of them. One was Air India, for serving international travelers to and from India, and the other was Indian Airlines, dedicated to serving domestic passengers. For almost 40 years, these two carriers enjoyed a monopolistic position in their respective passenger segments. They were protected from competition within India by the Air Corporations Act which did not permit any other airline to provide scheduled services to and from or within India. Three distinct phases can be identified in the recent industry trends and developments. . The first phase during 20032007can be characterized as one of significant growth in demand and capacity (Figure 1). India’s GDP had grown at the rate of about 6% in 20002004 but by around9% during 20052010.This economic growth had a significant impact on commercial aviation in India. It boosted business and leisure travel (both domestic and international). India was becoming a major origin and destination for international travel. The second phase started in 2007, when the industry witnessed a wave of consolidations, primarily to stem the tide of red ink. Jet Airways too saw its market share and profits decline and stock price plummet by 40% since 2005. Kapil Kaul of the Center for Asia Pacific Aviation (1), said, “But the aggressive expansion of the LCC segment comes at a cost to the whole sector. India’s airlines are expected to post a combined loss of approximately USD500 million in the current financial year ending 31Mar07.”During the third phase, in 2008, there was a steep fall in air travel due to the slowdown in the Indian economy, the H1N1 flu scare, and the terrorist attacks in Mumbai in November 2008. There was excess capacity all around and the airlines responded by developing plans to lay off employees and by offering deeply discounted fares to stimulate demand. Rival airlines Jet Airways and Kingfisher formed a strategic alliance for code sharing and cutting costs.

Answer the following question.

Q1. Discuss the reasons for national airlines losses and debate capacity utilization/allocation and pricing.

Q2. Give your views on the case.

case study (20 Marks)
G V Muralidhara (GVM), Faculty member of IBS , a wellknown educational group in Hyderabad, India, was involved in teaching the MBA and BBA courses. While talking to another faculty member, G Vijayudu (Vijay), GVM remarked on the important roleattitude played in the placement of students in companies. While GVM felt that the students were reasonably good in communication, he wondered whether they possessed the positive attitude that was so critical during selection by companies. He felt that students who lacked a positive attitude would suffer in terms of recruitment, team building skills, and leadership qualities. With a view to improving the students’ communication skills and attitude, GVM and Vijay scheduled and asked the students to give a presentation on the importance of attitude. This exercise was meant to create awareness on the subject and develop a good attitude among students. The BBA V semester section ‘F’ consisted of 34 students (25 male and 9 female). As students were told that this would be part of their internal assessment, they prepared very well. Meanwhile, GVM told Vijay to go in for peer grading instead of traditional teacher grading. Vijay argued against peer grading saying students would give grading in arbitrary manner or would be biased toward their friends and might show favoritism. GVM, however, disagreed. He described the benefits of peer grading. He said that a study by Philip M. Sadler and Eddie Good had shown that when student grading was used responsibly, it could be highly accurate and reliable and help save teachers’ time. In their study, Sadler and Good had found that self grading appeared to further student understanding of the subject matter being taught. Finally, GVM and Vijay decided to adopt peer grading. The faculty members made the students responsible for grading each other. The collected grading data was given to Muthukumar, analyst, for analysis. This enabled us to understand and analyze the gathered data to identify the highest graded student and compare each student's grading with the overall class’s grading.

Answer the following question.

Q1. Discuss the advantages of grading’s by peers.

Q2. Why the positive attitude is so critical during selection by companies? Explain.

case study (20 Marks)
Procter & Gamble (P&G), the world's leading producer of household products, markets over 300 brands to 5 billion people around the world. P&G's products fall under three broad categories, namely, beauty care; health, baby, and family care; and household care. In the early 1990s P&G faced a problem of extreme demand variations for one of its bestselling brands Pampers diapers. The logistics executives at P&G examined the order rates for Pampers across the supply chain. Though the purchase rate remained more or less steady at the consumer end, the logistics executives found that the variation of orders increased from the retailer level to the distributor level up the supply chain. Increase in production due to the uncertainty in demand is the concept of the bullwhip effect. The reasons that led P&G to shelve its old supply chain model were explored and the supply chain efficiencies were revamped. Their after the company took various initiatives to increase accuracy of demand forecasts. P&G also provided up to date information to suppliers so that they could plan their production and deliver materials on a just in time basis.

Answer the following question.

Q1. What steps did P&G take to reduce the impact of the bullwhip effect? In what other ways, according to you, can P&G reduce the bullwhip effect across its supply chain?

Q2. Coordination between the various stages of the supply chain increases overall profits and moderates the bullwhip effect. What are the basic obstacles in supply chain coordination and how can P&G ensure this coordination?



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