CII Institute of Logistics PGDSCM/DSCM/ADSCM & CERTIFICATE PROGRAMS Semester-end Examinations- December 2011 INTERNATIONAL LOGISTICS & GLOBAL SCM/ INTERNATIONAL LOGISTICS MANAGEMENT Time: 3 hours Marks: 100 Part A Answer all questions (10 x 1 = 10 Marks) 1. a) b) c) d) Costs that are involved in the logistics operation of a firm is/are Transportation of supplies to the plant Packaging Maintaining warehouses All the above 2. a) b) c) d) Which is not an element of customer service? Customer perception Order cycle time Order accuracy Order condition 3. When companies opt for making multiple copies of the order for circulation that is termed as Sequential order communication Parallel order communication Written communication None of the above a) b) c) d) 4. a) b) c) d) This is a fundamental international shipping document used in ocean transportation. Shipper’s letter of instruction Standard shipping note Bill of Lading Bill of entry 5. a) b) c) d) Which among the following is not a feature of Liner ships? They do not operate on a regular schedule. They follow a pre established schedule They undertake regular voyage They call on predetermined ports 6. a) b) c) d) These ships are also known as box ships. Roll on/Roll off ships Break bulk ships Container ships Combination ships 7. a) b) c) d) What does NVOCC means? Non vessel operating combination carrier Non vessel operating common carrier Non vessel operational carriers None of the above 8. a) b) c) d) These are passenger planes that are designed in such a way that freight is carried on the main deck as well as in the belly hold. Air freighters Passenger planes Combis Charters 9. a) b) c) d) Reorder point = Rate of usage*lead time Rate of usage*reorder cost Lead time*reorder cost None of the above 10. a) b) c) d) These are ware houses licensed by government to various parties. Field warehouse Leased warehouse Special warehouse Bonded warehouse Part B 1. Answer any four (4x15= 60 marks) Describe briefly the various activity centers in logistics. 2. 3. 4. 5. 6. List down the various problems that may be encountered in International logistics and the ways to overcome them. What is the procedure for clearance of import goods? Write a note on International Air transportation. Briefly explain any three of the following. A. Container ships B. Roll on/Roll off ships C. Break bulk ships D. Combination ships What are various steps involved in execution of efficient customer order? Part C Case study (3*10=30 marks) Please read the case and answer the questions given below: Chrysler Unseats its Competition with Supplier Partnerships When Lee Lococca gave the go ahead to Chryslers Neon Project in 1990, he was taking a big risk. Until that time; no American subcompact car had been able to turn a profit for its manufacturer. But Chryslers Neon ultimately reversed this trend; mainly because of the unprecedented partnerships Chrysler entered into with its suppliers in the earliest stages of the Neon Project. Robert Marcell, head of Chryslers’ small –car division, knew that partnerships held the key to Chryslers’ success. In order to make a profit, Marcell had to meet stringent production schedules for which he had to bring suppliers on board early. This is crucial because outside companies would be furnishing 70 percent of the value of the car in the form of tyres, seats, suspension, and other components. In an unprecedented move, Marcell allowed engineers from key potential suppliers to drive the first Neon prototype during an October 1990 meeting. His team then issued a cost challenge, inviting suppliers to make use of sensitive Chrysler financial data and ideas in a mutual effort to cut costs. Companies who entered into this unique partnership found that collaborating with Chrysler was a two-way street. For example Johnson controls, Inc was initially to make Neon’s seats within Chrysler’s price targets, but Chrysler was unhappy with their safety, weight and comfort. After the supplier partnership agreement, ten Chrysler engineers moved into Johnson controls firm near Detroit to work with engineers of Johnson controls. After working together for five days together the partners agrees on new weight, cost and performance standards that were so on target that they didn’t have to be changed again. As a result of this unique partnership, Chrysler was able to accept component costs from Johnson controls because of overall savings for Chrysler. At Chrysler’s request, Johnson designed some rear seats with the capability of folding down to expand trunk space. But Chryslers’ engineers insisted that Johnson design the special seats so that they could be installed the same way as other seats. This made each seat cost more, but Chrysler ultimately could save about $ million overall in final assembly costs. Thanks to its successful partnership with Johnson controls and other major suppliers, Chrysler met its stringent cost and time deadlines for the Neon – and came out with Detroit’s first profitable subcompact car in the bargain. Questions: 1. 2. 3. Discuss the approach of Chrysler’s operations managers in developing and building the Neon model What benefits a manufacturing firm can achieve from its suppliers, through outsourced manufacturing? Discuss the differences between outsourcing and out- partnering *************************************