Inventory Management Course Code: 0416-413 Midterm Summer 2026 Question Paper

Daffodil International University Faculty of Business and Entrepreneurship Department of Business Administration Mid-term Examination: Summer 2026 Course Instructor: FS Course Title: Inventory Management Course Code: 0416-413 Time: 01:30 Hours Total Marks: 25 Please answer the following questions. You are required to attempt all of them. 1 Vision electronics retailer in Bangladesh imports laptops from international manufacturers and sells them through its physical stores and online platform. One of its laptop models is sold at BDT 80,000. Market research indicates that customers perceive the value of the product, warranty support, and after-sales service to be worth approximately BDT 95,000. However, the company recently experienced rising inventory carrying costs, increased warehouse rental expenses, higher transportation costs due to fuel price hikes, and additional promotional expenses to clear slow-moving stock. Management is concerned that although sales are increasing, profitability is not improving at the same rate. a) Explain supply chain surplus and identify how it is represented in the given scenario using the provided customer value and supply chain cost information? b) Explain how supply chain surplus is created in this scenario by describing the relationship between customer value, selling price, and supply chain cost? 5 CLO 1 LII 2 Fair Distribution Limited manufactures and assembles smartphones for the Bangladeshi market. Based on sales forecasts, the company imports chips, batteries, screens, and other components several months in advance. These components are stored in warehouses and partially assembled before the selling season. However, Walton noticed that customer preferences regarding colors, storage capacity, software features, and promotional packaging often changed rapidly. To address this issue, the company decided to do final assembly, packaging, and software customization until receiving confirmed orders from distributors and major retailers. This approach reduced excess inventory while allowing the company to respond more effectively to changing market demand. a) Explain the activities in the scenario that represent the Push phase and the Pull phase of the supply chain. b) Explain how postponement is used in this scenario to improve alignment between production planning and customer demand? 5 CLO 1 LII 3 A retail supermarket chain in Bangladesh operates multiple outlets across major cities. To ensure continuous product availability, the company maintains various types of inventories including perishable food items, packaged goods, and imported electronics. However, the company has recently faced challenges such as product wastage due to overstocking of perishable items, frequent stockouts of high-demand products during peak 5 CLO 1 LII 1