SCM10 Case Study: Factors Influencing Gold Demand in India

This document presents a solved homework assignment focusing on a case study related to supply chain management (SCM) and the demand for gold in India. The assignment includes multiple-choice questions testing the understanding of SCM versus logistics, the role of blockchain in SCM, and key SCM processes like traceability and planning. Additionally, the assignment analyzes the factors determining gold demand, including festival seasons, cultural beliefs, and the price of substitutes like platinum. The questions delve into how changes in platinum prices affect gold demand, non-price factors influencing gold sales, and the impact of gold price increases when substitutes are unavailable. The answers highlight the significance of cultural and social factors, and the role of substitutes in influencing consumer behavior within the gold market in India. The assignment is contributed to Desklib to help students with their SCM studies.

Gurpreet Singh Gill.
A00105702
Information System
SCM10
Case study (10%)
Submitted to professor: Dr.Diljeet Kaur

1. What is the main difference between supply chain management
(SCM) and logistics?
a. Logistics focuses on two main constituents: transportation and
warehousing
b. SCM's main focus is the delivery of a final product while logistics
focuses more on the bigger picture
c. Logistics covers a number of processes in the supply chain while
SCM just focuses on moving products
d. None of the above
 Answer1: (A) Logistics focuses on two main constituents:
transportation and warehousing
2. How are businesses hoping blockchain will help SCM?
a. Increase transparency and visibility
b. Secure exchange of data
c. Manage smart contracts
d. All of the above
 Answer2 (D) All of the above
3. True or false: SCM covers the planning and execution of
processes required to execute a product's flow, from acquiring
goods and materials through production and distribution to the
final customer, in the most efficient way possible?
a. True
b. False
 Answer3: (A) TRUE

4. Which of the following processes are used by manufacturers to
meet compliance demands?
a. Sustainable procurement
b. Supply chain visibility (SCV)
c. Supply chain planning
d. Risk management
 Answer4:(B) Supply chain visibility (SCV)
5. Which of the following is not a component of supply chain
planning?
a. Consumer forecasting
b. Supply collaboration
c. Supply chain security
d. Demand plan
 Answer5:(C) Supply chain security
6. Which of the following processes is most crucial in a case like
the 2018 contamination outbreak that was linked to romaine
lettuce?
a. Supply chain execution (SCE)
b. Supply chain traceability
c. Supply chain visibility (SCV)
d. Supply chain sustainability (SCS)
 Answer6:(B) Supply chain traceability

7. True or false: The goal of SCS is to apply socially responsible
practices that are friendly to the environment and encourage
positive brand awareness for your business?
a. True
b. False
 Answer7:(A) TRUE
8. Which of the following are important in creating a supply chain
management strategy?
a. Ensuring the customer is satisfied
b. Using as many resources available as effectively as possible
c. Implementing technology and management software that best fits
your business needs
d. All of the above
 Answer8:(D) All of the above
9. Which of the following is not a benefit of SCM?
a. Higher profits
b. Lower costs
c. Boosting collaboration efforts
d. None of the above
 Answer9:(D) None of the above
10.Which of the following is a risk management tool available to
enterprises today?
a. Enterprise risk management systems
b. Predictive analytics
c. Sensors
d. All of the above
 Answer10:(D) All of the above

Question1: What are the main factors which determined the
demand for gold in the above case?
Ans: in the India the gold has been very popular from many
centuries. It is a kind of investment for them to invest their
income. According them it is ideal way for saving to invest in
valuable goods like the gold. The demand of the gold is
determined by the various factors in the given case study. The
festival sessions the demand for gold goes up in India. Moreover,
specially on the Diwali the people love to buy the the ornaments
of the gold, silver and other precious metals owing to their rituals
and cultural beliefs even when the prices are considerably high.
The other things that effect the demand of gold that is the price
of the substitutes in the market like platinum. It is mention in the
case study that with the drop of price of platinum the demand for
gold dropped and the sales for the platinum were gone up.
Question 2: What would happen to demand of gold if the price of
platinum is rise?
Answer: . The things that effect the demand of gold that is the
price of the substitutes in the market like platinum. The rise in the
price of platinum will surely has adverse effect on the sales of
platinum and positive for gold. The price of the gold is depends
over the price of the substitutes available in the market and price
of gold will definitely fluctuate with change in the price of the
substitutes. It is mention in the case study that with the drop of
price of platinum the demand for gold dropped and the sales for
the platinum were gone up and its opposite will also true.
Question3: What are the non-price factor to determine the
demand of commodity like gold?
Answer: In the case study there are some other factors instead of
the price that have the impact over the sales of the gold in India.
The festivals, rituals, customs, behaviour, and attitude are some

social factors that have very significant impact over the sales. The
festival sessions the demand for gold goes up in India. Moreover,
specially on the Diwali the people love to buy the ornaments of
the gold, silver and other precious metals owing to their rituals
and cultural beliefs even when the prices are considerably high.
Question4: What would happen to the demand of gold with rise in
prise of gold if platinum as a substitute in not available in the
market?
Answer: if there is no substitute for the gold in market the people
would not have any option for them to choose. The people have
to buy the gold as ornament. However, it will not effect the
demand of gold it would be constant. If the price shows the
unnecessary price rise in gold that will discourage the consumer
to buy and encourage the people to sell their own gold to get
some profits in term of business motives.