BPAS-184 Solved Question Paper

Selected term: Jul 2025

Question 1: Explain the idea of logistics and its key features.

Meaning of logistics

In simple words, logistics is the organised movement and storage of materials, goods and related information from the point where they start (supplier or factory) to the point where they are finally used or consumed. It includes activities like purchasing, transportation, warehousing, inventory control, order processing and customer service. The basic aim is that the right product should reach the right place, in the right quantity and condition, at the right time and cost.

Important characteristics

• Flow-oriented – Logistics looks at the continuous flow of materials, goods, money and information through the entire supply chain, not just one isolated activity.
• Customer-focused – All decisions (transport mode, inventory levels, warehouse location) are taken keeping in mind customer service and satisfaction.
• Cost–service balance – Logistics does not always choose the cheapest option; it tries to balance total cost with the level of service expected by customers.
• Integrative function – It links purchasing, production, marketing and finance. For example, a production plan is meaningful only when transport and warehousing arrangements are in place.
• Time and place utility – Logistics adds value by making goods available when and where they are required. A textbook delivered after the exam has almost no value.

Practical illustration

In a large e-commerce company, logistics covers vendor ordering, movement of goods to fulfilment centres, storage, picking and packing of orders, last-mile delivery and handling returns. A delay at any one stage—say, wrong stock information in the warehouse—directly affects delivery time and customer ratings. Many service organisations (hospitals, disaster-relief agencies, postal services) also rely heavily on logistics planning to ensure that medicines, food packets or letters reach people on time.

Question 2: Describe different ways in which organisations procure materials.

Idea of procurement

Procurement is the organised process of identifying needs, finding suppliers, negotiating terms and ensuring that the required materials or services actually reach the organisation. In logistics, good procurement decisions affect cost, quality and continuity of supply.

Major methods of procuring materials

• Open competitive bidding – Requirements are advertised publicly and many suppliers are invited to quote. After technical and commercial evaluation, the most suitable offer is selected. This method is common for government departments or large public projects where transparency is important.
• Limited or restricted tenders – Only a shortlist of approved or experienced suppliers is invited. This saves time and is useful when the product is specialised and only a few reliable sources exist.
• Single-source or direct purchase – Material is bought from one chosen supplier without competition, usually when that firm enjoys technical monopoly (for patented spares), offers a critical service, or when emergency situations (machine breakdown, disaster) do not allow time for normal tendering.
• Rate contracts and framework agreements – The buyer fixes terms and prices with a supplier (or group of suppliers) for a specific period. Within that period, different departments can place orders as per need without fresh negotiation every time. Many public sector undertakings and hospitals use such rate contracts for drugs or stationery.
• Consortium or centralised procurement – Several units or institutions pool their requirements and buy together to obtain better prices and bargaining power—for example, a chain of schools jointly purchasing textbooks.
• E-procurement – Use of online portals for floating tenders, reverse auctions and placing purchase orders. This brings speed, better documentation and often better prices because more suppliers can participate.

Practical note

In real organisations, a mix of these methods is used. For routine, low-value items (cleaning material, basic stationery) companies may use rate contracts or annual online catalogues, whereas for high-value machinery they rely on detailed open tenders and technical evaluations.

Question 3: “Industrial material handling equipment covers many types of machines, tools and accessories.” Explain this statement.

Role of material handling in logistics

Material handling includes every activity related to the movement, storage and protection of materials, components and finished goods inside and between facilities. Modern industry cannot depend only on manual labour; it needs a wide variety of equipment to shift goods safely and efficiently.

Broad categories of handling equipment

• Conveying systems – Fixed-path devices such as belt conveyors, roller conveyors and chain conveyors to move items continuously along a line—common in assembly plants or airports.
• Hoisting and lifting equipment – Cranes, hoists, elevators and lifts used to raise heavy loads in factories, construction sites and warehouses.
• Industrial trucks and mobile equipment – Hand trolleys, pallet trucks, forklifts and reach trucks which can pick, move and stack pallets or containers at different locations and heights.
• Storage and retrieval systems – Racks, bins, shelves, pallet racking, automatic storage and retrieval systems (AS/RS) where cranes or robots place and pick items based on computer instructions.
• Supporting devices and accessories – Pallets, containers, slings, hooks, hoppers, silos and packaging that help to hold or protect materials during movement.

Why such variety is needed

• Different materials (powders, liquids, fragile electronics, steel coils) need different types of handling to avoid breakage, contamination or injury.
• Layout constraints—multi-storey buildings, narrow aisles, outdoor yards—also demand specific equipment.
• Automation, speed and safety considerations force companies to invest in specialised tools instead of heavy manual labour.

Real-life example

In a car manufacturing plant, raw steel comes in by trucks and is unloaded by overhead cranes; components are moved along conveyor belts; engines are lifted by hoists onto the chassis; finished cars are driven to parking yards using ramps and movable platforms. At each stage, a different handling device works like a link in a chain. If any part fails or is wrongly chosen, the entire line can slow down, costs rise and safety risks increase.

Question 4-1: Briefly describe the logistics management cycle.

Understanding the logistics management cycle

The logistics management cycle is the step-by-step sequence through which logistics activities are planned, implemented, monitored and improved. It shows that logistics is not a one-time event but a continuous process.

Main stages (simplified)

• Assessment and planning – Studying customer demand, product characteristics, service expectations and existing network. Setting objectives for cost, service level and response time.
• Designing the logistics network – Deciding on number and location of warehouses, choice of transport modes, policies for inventory and order processing.
• Implementation – Signing contracts with transporters and warehouses, arranging equipment, hiring and training staff, putting information systems in place.
• Operations and coordination – Day-to-day activities: purchasing, inbound transport, storage, order picking, dispatch, documentation, returns handling.
• Monitoring and control – Tracking key indicators such as delivery time, stock-outs, transport cost per unit, damage and loss. Information systems help in this stage.
• Review and improvement – Based on performance data and customer feedback, management revises routes, inventory norms or supplier relationships to improve the next cycle.

Practical angle

During COVID-19 vaccine distribution, many governments followed such a cycle—planning cold-chain capacity, implementing hub-and-spoke networks, monitoring delivery temperature and coverage, and then re-planning for later phases based on field experience.

Question 4-2: What is Vital–Essential–Desirable (VED) analysis?

Basic idea

VED analysis is an inventory control tool which groups items according to their importance for operations, especially in maintenance and healthcare settings. The aim is not to treat all items in the store in the same way but to pay maximum attention to the most critical ones.

Three groups

• Vital items – Without these, the system may stop functioning or lives may be at risk. For example, life-saving drugs in a hospital, or a critical spare part for a power plant. These items require very strict control, high safety stocks and continuous availability.
• Essential items – Important for performance but a short interruption may be managed by alternatives or minor adjustments. Here, balanced stock levels are maintained.
• Desirable items – Useful but not critical; if they are temporarily unavailable, operations do not suffer seriously. These items can be ordered less frequently and held in smaller quantities.

Real-world usage

In many hospitals, pharmacy managers label medicines and consumables according to V, E and D. During budget cuts or supply disruptions, they ensure that “V” group items are never compromised even if “D” group items are postponed or reduced.

Question 5: Describe the main characteristics of logistics information flows.

Meaning of information flow in logistics

Information flow refers to the movement of data and messages that support the physical movement of goods—orders, forecasts, inventory records, shipment status, invoices and so on. Without accurate and timely information, trucks, warehouses and workers cannot perform efficiently.

Key features

• Bidirectional and multi-directional – Information does not move only from supplier to customer; it also flows back as orders, complaints, returns, payment details and forecasts.
• Integrated across functions – Data on sales, purchasing, production, inventory and finance have to be linked. For example, a confirmed customer order should automatically update stock record, production plan and dispatch schedule.
• Based on availability, accuracy and timeliness – For good decisions, information must be easily accessible, reflect the real situation (stock on hand, vehicle location) and reach managers quickly.
• Combination of internal and external sources – Internal data come from warehouses, production, accounts; external data include customer orders, supplier schedules, market trends and carrier updates.
• Supported by technology – Barcodes, RFID tags, transport-management systems, ERPs, partner portals and mobile apps all help to capture and transmit information instantly.

Practical example

When a customer orders a mobile phone online, information flows from the website to the central server, then to the warehouse for picking, to the courier company for delivery, and back to the customer as tracking updates. Any break in this chain—wrong stock position, delayed update from the courier—results in poor service even if the physical product is ready.

Question 6: Explain the role played by a Logistics Information System (LIS).

What is a Logistics Information System?

LIS is an organised set of procedures, databases and technology that collects, stores, processes and reports logistics-related information for planning and controlling logistics activities. It may be paper-based in small setups, but today it is mostly computerised and connected with other systems in the organisation.

Major roles of LIS

• Supporting decision-making – LIS helps managers take decisions about inventory levels, transport modes, warehouse location and routing by providing reliable data and analytical reports.
• Order tracking and visibility – Through LIS, companies can monitor where a shipment is, when it left the warehouse, and when it is expected to reach the customer. This visibility reduces uncertainty and builds trust.
• Coordination across the supply chain – Suppliers, manufacturers, warehouses, transporters and retailers can share common information, follow standard formats and comply with regulations, which reduces duplication and errors.
• Improving customer service – Quick order confirmation, accurate invoices, proactive alerts about delays and easy return processing are all possible when LIS is integrated with customer-facing systems.
• Performance measurement and control – LIS generates key performance indicators such as order-cycle time, delivery reliability, transport cost per unit and warehouse productivity. Managers use these metrics for continuous improvement.

Workplace experience

Many logistics companies that shifted from spreadsheets to integrated LIS noticed that disputes with customers about quantity and delivery time dropped sharply. Also, planning of vehicle loads became more scientific, saving fuel and reducing empty return trips.

Question 7: Analyse the main challenges faced in implementing green logistics.

Green logistics in brief

Green logistics aims to design and manage logistics activities in an environmentally responsible way—reducing emissions, saving energy, cutting waste and using resources efficiently while still meeting customer needs.

Key challenges

• Dependence on fossil fuels – Most trucks, ships and aircraft still run on diesel or other fossil fuels. Alternatives such as electric vehicles or biofuels are emerging but are not yet available everywhere or may be costly.
• Urban congestion and last-mile delivery – Growing e-commerce has increased small parcel deliveries in cities, leading to more traffic, higher emissions and difficulties in using bigger, more efficient vehicles.
• Infrastructure and regulatory gaps – Lack of dedicated freight corridors, limited charging stations, weak enforcement of emission norms and uneven road conditions make it hard to maintain green practices consistently.
• High initial investment – Energy-efficient warehouses, advanced vehicles, new IT systems and eco-friendly packaging require capital. Smaller firms may find it difficult to invest without visible short-term returns.
• Impact on speed and flexibility – Consolidating loads, optimising routes and using slower but greener modes (like rail or waterways) may reduce emissions but can increase transit time compared to express road or air transport.
• Limited awareness and commitment – Managers, employees and even customers may not fully understand environmental impacts. Without pressure from buyers or regulators, companies may postpone green initiatives.

Real-life observation

Some large retailers that shifted to reusable crates, route optimisation software and energy-efficient warehouses found that long-term savings in fuel and packaging expenses actually compensated for higher initial costs. However, they also reported that convincing transport partners and training staff were bigger challenges than buying technology.

Question 8-1: Write a short note on customer service in logistics.

Customer service as a logistics outcome

Customer service in logistics means how easily and reliably a customer can obtain the product or service they want. It is not only the friendly behaviour of staff; it also includes availability of stock, speed and accuracy of delivery, condition of goods and the handling of complaints.

Key elements

• Availability – Keeping appropriate stock so that customers rarely face “out of stock” situations for regular items.
• Flexibility – Ability to manage special requests such as urgent deliveries, custom packaging or changed delivery points.
• Reliability – Orders should reach the right place, at the promised time, in the correct quantity and in good condition, with accurate documents.
• Communication – Providing clear information on order status, delays, transport issues and return procedures.

Example

In B2B supply chains, many buyers value a supplier more for dependable deliveries and quick problem-solving than for the lowest price. A logistics team that gives accurate delivery commitments and honours them consistently becomes a key asset in customer retention.

Question 8-2: Write a short note on Environmental Management System (EMS).

Meaning of EMS

An Environmental Management System is a structured framework that helps an organisation manage its impact on the environment. It consists of policies, procedures, responsibilities and monitoring practices to ensure that activities comply with environmental laws and internal goals. Standards such as ISO 14001 provide guidelines for setting up such systems.

Main components in logistics context

• Defining an environmental policy that commits the organisation to pollution control, resource conservation and continuous improvement.
• Identifying significant environmental aspects—fuel use, emissions from vehicles, noise, packaging waste, warehouse energy consumption—and setting measurable targets for each.
• Establishing procedures for greener purchasing, efficient transport planning, waste segregation and recycling, energy-saving in warehouses and proper handling of hazardous materials.
• Training employees, drivers and contractors so that they understand their environmental responsibilities.
• Regular audits and management reviews to check whether targets are being met and to decide corrective actions.

Practical experience

Several logistics firms that adopted ISO 14001-based EMS report not only better compliance with regulations but also savings in fuel, electricity and packaging costs. Additionally, such certification often improves their image with multinational clients who prefer environmentally responsible partners.