Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 4th Sem 3549242 International Supply Chain Management Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 4 ? EXAMINATION ? SUMMER 2019
Subject Code: 3549242 Date:06/05/2019
Subject Name: International Supply chain Management
Time: 10:30 AM To 01:30 AM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Definitions
(a) Lex Mercatoria
(b) Reinsurance
(c) homologation
(d) SWIFT
(e) Freighters
(f) IATA
(g) Van parcel Unit
14
Q.2 (a)
Explain relationship between SCM and logistics. Identifies the
differences and similarities. Is one part of other? How does one support
the other?
07
(b)
Discuss the importance of international logistics in supply chain
management.
07
OR
(b) International logistics is a tool for an organization to get competitive
advantage. Explain
07
Q.3 (a)
Analyzes and evaluates the different methods used to forecast exchange
rates
07
(b)
In the case of project import consisting of many items, it was advised
that bundling of the scope of insurance for marine transit along with
storage, erection and commission will attract a very competent premium
can you explain the reasons for why would it be so?
07
OR
Q.3 (a)
Please explain the statement ?no entity can claim on insurance unless
the entity has an insurable interest in the goods insured?
07
(b)
Discuss the different types of aircrafts and its services in context of
International air transportation.
07
Q.4 (a)
Define the Customs clearance, duty, Non-tariff barriers and procedure
of custom clearance in brief.
07
(b)
How is the rail system integrated with multimedia transportation
globally?
07
OR
Q.4 (a)
What is the relationship between rail and road in end to end logistics
07
(b)
Describe three difficult types of ships used in international ocean
transportation. What type of cargos are they used for?
07
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 4 ? EXAMINATION ? SUMMER 2019
Subject Code: 3549242 Date:06/05/2019
Subject Name: International Supply chain Management
Time: 10:30 AM To 01:30 AM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Definitions
(a) Lex Mercatoria
(b) Reinsurance
(c) homologation
(d) SWIFT
(e) Freighters
(f) IATA
(g) Van parcel Unit
14
Q.2 (a)
Explain relationship between SCM and logistics. Identifies the
differences and similarities. Is one part of other? How does one support
the other?
07
(b)
Discuss the importance of international logistics in supply chain
management.
07
OR
(b) International logistics is a tool for an organization to get competitive
advantage. Explain
07
Q.3 (a)
Analyzes and evaluates the different methods used to forecast exchange
rates
07
(b)
In the case of project import consisting of many items, it was advised
that bundling of the scope of insurance for marine transit along with
storage, erection and commission will attract a very competent premium
can you explain the reasons for why would it be so?
07
OR
Q.3 (a)
Please explain the statement ?no entity can claim on insurance unless
the entity has an insurable interest in the goods insured?
07
(b)
Discuss the different types of aircrafts and its services in context of
International air transportation.
07
Q.4 (a)
Define the Customs clearance, duty, Non-tariff barriers and procedure
of custom clearance in brief.
07
(b)
How is the rail system integrated with multimedia transportation
globally?
07
OR
Q.4 (a)
What is the relationship between rail and road in end to end logistics
07
(b)
Describe three difficult types of ships used in international ocean
transportation. What type of cargos are they used for?
07
Page 2 of 3
Q.5 Case Study
AMC Motors, located near New Delhi, are specialists in the manufacturer
of small motors and had a huge market base in India. They also export to
markets in the Middle East, Europe, and US. The motors have sheet metal
and the steel was usually bought from Indian steel manufacturers who
have stockyards not away from the factory.
While ordinary HR coils are required for casting, for rotor stampings,
electro steel was required, which was routinely imported from japan in
lots of 500 tonnes on CIF basis to Mumbai port where it was unloaded,
custom-cleared and transported to the factory by road.
All of a sudden, as a result of the Target plus scheme, the company got
huge duty credit license which only they could use to offset against duty
on imported items. The company could import HR coils and looking at
the overall costs, they found that they could save at least 20 per cent as
compared to local purchase. The quantity was 2500 tonnes per month.
The identified supplier was in Taiwan near keelung port. The purchase
was on free on board (FOB) basis and supplier offered to ship in break
bulk in lots of 1000 tonnes every 12 days. ;
AMC?s logistics manage, Mr. Shivshankar got quotes from freight
forwarders and brokers for break bulk basis which as US $65 per tonne.
In the case of break bulk, import the goods will have to be received at
Mumbai port where the consignee has to arrange receiving the materials
under the hook move it to a yard, unload, and arrange customs inspection
before movement. On a contract basis, this would mean rs. 100 per tonne.
In Addition, Mumbai port trust charges 0.22 per cent of CIF values as
wharfage charges. If the goods are not cleared within five free days, a
sum of rs.30 per tonne was charged as ground rent.
The coils were of a standard weight of 15 tonnes and on heavy trailers, a
maximum of two coils could be loaded. The cranes for loading the truck
are employed at shippers cost with a heavy duty crane costing rs. 7500/-
per shift and a maximum of five trucks could be loaded in a shift. The
freight rates on trailers fluctuated between rs. 3000 and rs. 3500 per tonne
from Mumbai to Delhi area.
AMC was confident of clearing the consignment in seven to eight days,
including customs clearance time, which could be three days.
Shivshankar was of the opinion that break bulk was an option. Their
schedules were prone to delays as they added load and discharge ports to
make sure the ships were as full as possible. Addition of ports does not
arise only because of additional days to voyage loading and discharging
time, but also due to diversion to additional ports. He was wondering
whether the cargo could be containerized. However, there were two
immediate problems. One was that coils of weight can be reduced to five
tonnes, it could be done. Secondly, the supplier did not have the facility
to containerize the goods in their premises. The suppliers agreed to make
five tonnes of coils and also tender the goods at a container freight station
near the port, where the shipping line has to take the responsibility of
containerization. However, they would charge an extra US $ 10 per tonne
and tender the goods on FCA CFS basis.
The shipping line contacted for container carriage was eager to accept
this cargo as moving this cargo in containers (20? size) would enable 20?
containers becoming available in New Delhi area for carrying basmati
rice out of this area to UK and Europe and 20? containers were short there
and were being moved at a high cost empty from Mumbai.
They quoted a rate of US $750 per 20? which could carry three coils of
five tonnes each. They also quoted another US $100 per 20? for stuffing
the container lashing and moving to the ship at Taiwan.
At the Indian end, the containers could come to JNPT (container port in
New Mumbai) and carried by rail to an inland container depot (ICD) near
Delhi. The cost of rail movement would be rs. 30,000 per container
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 4 ? EXAMINATION ? SUMMER 2019
Subject Code: 3549242 Date:06/05/2019
Subject Name: International Supply chain Management
Time: 10:30 AM To 01:30 AM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Definitions
(a) Lex Mercatoria
(b) Reinsurance
(c) homologation
(d) SWIFT
(e) Freighters
(f) IATA
(g) Van parcel Unit
14
Q.2 (a)
Explain relationship between SCM and logistics. Identifies the
differences and similarities. Is one part of other? How does one support
the other?
07
(b)
Discuss the importance of international logistics in supply chain
management.
07
OR
(b) International logistics is a tool for an organization to get competitive
advantage. Explain
07
Q.3 (a)
Analyzes and evaluates the different methods used to forecast exchange
rates
07
(b)
In the case of project import consisting of many items, it was advised
that bundling of the scope of insurance for marine transit along with
storage, erection and commission will attract a very competent premium
can you explain the reasons for why would it be so?
07
OR
Q.3 (a)
Please explain the statement ?no entity can claim on insurance unless
the entity has an insurable interest in the goods insured?
07
(b)
Discuss the different types of aircrafts and its services in context of
International air transportation.
07
Q.4 (a)
Define the Customs clearance, duty, Non-tariff barriers and procedure
of custom clearance in brief.
07
(b)
How is the rail system integrated with multimedia transportation
globally?
07
OR
Q.4 (a)
What is the relationship between rail and road in end to end logistics
07
(b)
Describe three difficult types of ships used in international ocean
transportation. What type of cargos are they used for?
07
Page 2 of 3
Q.5 Case Study
AMC Motors, located near New Delhi, are specialists in the manufacturer
of small motors and had a huge market base in India. They also export to
markets in the Middle East, Europe, and US. The motors have sheet metal
and the steel was usually bought from Indian steel manufacturers who
have stockyards not away from the factory.
While ordinary HR coils are required for casting, for rotor stampings,
electro steel was required, which was routinely imported from japan in
lots of 500 tonnes on CIF basis to Mumbai port where it was unloaded,
custom-cleared and transported to the factory by road.
All of a sudden, as a result of the Target plus scheme, the company got
huge duty credit license which only they could use to offset against duty
on imported items. The company could import HR coils and looking at
the overall costs, they found that they could save at least 20 per cent as
compared to local purchase. The quantity was 2500 tonnes per month.
The identified supplier was in Taiwan near keelung port. The purchase
was on free on board (FOB) basis and supplier offered to ship in break
bulk in lots of 1000 tonnes every 12 days. ;
AMC?s logistics manage, Mr. Shivshankar got quotes from freight
forwarders and brokers for break bulk basis which as US $65 per tonne.
In the case of break bulk, import the goods will have to be received at
Mumbai port where the consignee has to arrange receiving the materials
under the hook move it to a yard, unload, and arrange customs inspection
before movement. On a contract basis, this would mean rs. 100 per tonne.
In Addition, Mumbai port trust charges 0.22 per cent of CIF values as
wharfage charges. If the goods are not cleared within five free days, a
sum of rs.30 per tonne was charged as ground rent.
The coils were of a standard weight of 15 tonnes and on heavy trailers, a
maximum of two coils could be loaded. The cranes for loading the truck
are employed at shippers cost with a heavy duty crane costing rs. 7500/-
per shift and a maximum of five trucks could be loaded in a shift. The
freight rates on trailers fluctuated between rs. 3000 and rs. 3500 per tonne
from Mumbai to Delhi area.
AMC was confident of clearing the consignment in seven to eight days,
including customs clearance time, which could be three days.
Shivshankar was of the opinion that break bulk was an option. Their
schedules were prone to delays as they added load and discharge ports to
make sure the ships were as full as possible. Addition of ports does not
arise only because of additional days to voyage loading and discharging
time, but also due to diversion to additional ports. He was wondering
whether the cargo could be containerized. However, there were two
immediate problems. One was that coils of weight can be reduced to five
tonnes, it could be done. Secondly, the supplier did not have the facility
to containerize the goods in their premises. The suppliers agreed to make
five tonnes of coils and also tender the goods at a container freight station
near the port, where the shipping line has to take the responsibility of
containerization. However, they would charge an extra US $ 10 per tonne
and tender the goods on FCA CFS basis.
The shipping line contacted for container carriage was eager to accept
this cargo as moving this cargo in containers (20? size) would enable 20?
containers becoming available in New Delhi area for carrying basmati
rice out of this area to UK and Europe and 20? containers were short there
and were being moved at a high cost empty from Mumbai.
They quoted a rate of US $750 per 20? which could carry three coils of
five tonnes each. They also quoted another US $100 per 20? for stuffing
the container lashing and moving to the ship at Taiwan.
At the Indian end, the containers could come to JNPT (container port in
New Mumbai) and carried by rail to an inland container depot (ICD) near
Delhi. The cost of rail movement would be rs. 30,000 per container
Page 3 of 3
including terminal-handling charges at JNPT. The shipping line would
charge further rs. 3000 as DO charges per consignment per consignment.
A cleaning and crane charge of rs.1000 per container was further charged.
At destination an ICD charge of rs. 3000 per container and a destination
transport charge from ICD to the factory of Rs.5000 was charged.
By adopting containerization, the goods could be shipped in lots of 30
containers per week rather than one of lot of 2000 tonnes, hence,
something the supply chain.
After considering all empirical and also non-empirical factors, Mr.
shivshankar decided on getting the goods by containers. Can you justify
or otherwise the decision with detailed analysis? The FOB price of break-
bulk HR coil cane be assumed to be US $120 per tonne. If you make any
other assumption, please clearly enunciate the same. Consider the effect
of inventory holding costs both options in arriving at your conclusion.
(a) Can you explain the Target Plus Scheme in foreign trade policy and
discuss its significance to the company in this case?
07
(b) Is there any transportation infrastructure lacking in the case? 07
Or
(a) What are the other qualitative factors which could affect the
decision choices in the case?
07
(b) What does this case signify in terms of globalization of trade? 07
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This post was last modified on 19 February 2020