Assignment Set – 1

Q.1. What is Cash to Cash Cycle and why is it important? Discuss the various challenges faced in managing cash to cash cycle and what are the strategies to control it. (6+4 = 10 Marks)

Ans 1.

Cash to Cash Cycle

This Cash to Cash (C2C) cycle, sometimes called the cash conversion cycle is a financial measurement which measures the number of days between the time in which a firm pays cash for its inventory or raw materials to the point at which it receives cash from customers for the goods it’s delivered. It is calculated as Days Inventory Outstanding plus Days sales outstanding minus days payable outstanding. A lower C2C cycle indicates that the company converts its inventory

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Q.2. What is the significance of non-financial performance measurement and what are the key dimensions of non-financial performance measurement? List some of the challenges in non-financial performance management. (7+3 = 10 Marks)

Ans 2.

Significance of Non-Financial Performance Measurement

Non-financial performance measurement is using qualitative as well as quantitative indicators which are not quantified in monetary terms to determine the health, capability, and long-term sustainability of an organisation or the supply chain. While financial metrics such as profits, ROI and cost-cutting are important for a short-term performance assessment however, they are

Q.3. Explain in detail the Eight-step Process of AIM and DRIVE. (10 Marks)

Ans 3.

AIM and DRIVE are a structured eight-step method used in the management of supply chain costs to identify, analyze, and eliminate cost from supply chain operations while improving efficiency and service quality. It provides a disciplined system that stops organizations to pursue cost-cutting with no focus or in a reactive way and helps ensure the savings are quantified,

Assignment Set – 2

Q.4. Discuss the different types of Primary, Secondary and Tertiary Costs of any supply chain. What are the key challenges and considerations in implementing allocation-based systems for cost measurement? (7+3 = 10 Marks)

Ans 4.

Primary, Secondary, and Tertiary Supply Chain Costs

Supply chain costs are structured into three levels based on the proximity of their costs to primary supply chain operations as well as the ease with which they can be attributed to specific outcomes.

Primary Costs

Primary costs are the direct apparent costs unambiguously associated with the actual flow of

Q.5. How can organisations effectively select key cost drivers within their supply chain and manage their overall cost structure? (10 Marks)

Ans 5.

Cost driver selection that is effective and effective cost structure management is the most important thing for businesses looking to maintain and achieve high-quality cost positions within their supply chains. Cost drivers refer to any variable that has the potential to cause changes in the overall price of a supply chain activity or procedure. Recognizing the appropriate cost drivers

Q.6. Discuss some of the constraints in Supply Chain Management and what impact do they have on overall SCM? (10 Marks)

Ans 6.

Supply chain management works within a complex web of constraints that limit the options available to managers and impose trade-offs between competing objectives. It is vital to understand these constraints in the development of efficient supply chain strategies, and making sound operational decisions. The types of constraints can be classified into physical, financial, or