c.
d.
CII Institute of Logistics
PGDSCM/DSCM/ADSCM & CERTIFICATE PROGRAMS
Semester-end Examinations- December 2011
7. DWT stands for:
a. Drift weight tonnage
b. Draft weight tonnage
c. Dead weight tonnage
d. None of the above
INTERNATIONAL TRANSPORT SYSTEM
Time: 3 hours
Marks: 100
Part A
Answer all questions
(10 x 1 = 10 Marks)
1. Bill of Lading is issued by:
a. Captain of the vessel
b. Shipping company
c. Customs department of the importer’s country
d. Customs department of the exporter’s country
2. Letter of Credit is issued by:
a. Importer’s Bank
b. Exporter’s Bank
c. Importer himself
d. Exporter himself
8. DAP stands for:
a. Delivery at premises
b. Delivery at place
c. Delivery after period
d. None of the above
9. Distances in sea is measured in ______________ unit:
a. Kilometers
b. Miles
c. Meters
d. Nautical Miles
10. Two main principles of transportation are:
a. Economy of scale and Economy of service
b. Economy of distance and Economy of service
c. Economy of scale and Economy of distance
d. None of the above
3. Which is not true for Airway bill:
a. It is a transport document
b. It helps in taking delivery from the airline
c. It is negotiable in nature
d. All are true
4. Which statement stands true:
a. Liner ships have fixed schedule where as tramp vessels have no
fixed schedule
b. Panamax ships are largest in the world
c. CIF is used for any mode of transportation
d. INCOTERM-2011 has 13 terms for conducting international
trade
5. In ________________ term of sale, an agent is appointed for selling the
goods in importers country:
a. Advance payment
b. Export on consignment basis
c. Letter of Credit
d. Document against payment
6. Goods can be stored without payment of excise duty in:
a. Refrigerated warehouse
b. Market centered warehouse
Bonded warehouse
Ex-bond warehouse
Part B
Answer any four
1.
2.
3.
4.
5.
6.
(4x15= 60 marks)
Discuss the various modes of transportation available in international
business. Discuss the main features, advantages and limitations attached
with each of the modes.
“Main aim of transportation is to make the product available to the final
customer in right state and lowest cost so as to attain customer
satisfaction”. Elucidate the given statement.
Briefly discuss INCOTERM 2010.
Write short notes on any 3 of the following:
a. Bill of Lading
b. b. Letter of Credit
c. c. Functions of warehousing
d. d. Open Account
Discuss the different kinds of warehouses and the benefits of
warehousing function.
What are the various principles of international transportation?
Part C
Case study
(3*10=30 marks)
Please read the case and answer the questions given below:
Modern Cements Ltd (MCL) has manufacturing set up at sea coast of Gujarat at
Veraval with capacity of about 10 million tons per annum since 2001.
Cement being a bulk commodity, transportation is a vital component in the cost
calculation. MCL’s board members understood the importance of logistics activity
in cost reduction.
Company sells the cement through a network of 112 CF agents and 3020 stockists.
Company also sells product directly to large construction sites. The whole process
of cement transportation depends on the marketing plan of company. MCL serves
to Maharastra(approx 25%), Rajasthan(approx 15%),Gujarat( approx 25%), North &
Central India( approx 15%), South Zone(approx 20%).
MCL prefers to move product by rail where the distance is more than 150 kms to
the interior parts of Central & North Zone of India. For dispatching product in
southeast and southwest zones, company prefers to use sea routes to send
products in bulk to major southern ports where they have packaging units to sell
the product in 50 kg bag packing in South Zone. In bulk transportation the cement
is vacuum filled into a vessel of transportation.
MCL is also looking for feasibility of transporting through inland waterways.
MCL is also studying feasibility of offering Ready Mix Concrete to large construction
sites having advantages of a faster construction period, good quality, no pollution
and lower storage requirement at site.
MCL is also planning to expand manufacturing capacity to the tune of 15 million
tons per annum. They want to expand their marketing operations in Northeast part
of the country.
MCL is still foreseeing a potential for cost saving by reorganizing logistics
operations.
Answer the following questions:
1) Considering marketing locations and future expansion, does MCL has further
scope to reduce its outbound logistics costs? If yes, how the same can be
achieved?
2) What can be strategies for improving overall logistics function?
3) Should company expand for establishing Ready to Mix Concrete plants at various
remote locations in India? How will it help in the growth of the MCL
looking to current scenario of Infrastructure Development in India.
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