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LOGISTICS AND SUPPLY CHAIN MANAGEMENT PROGRAM
Course:
INTERNATIONAL TRANSPORTATION & LOGISTICS
Preparation for Final Test
Lecturer: Assoc. Prof. Dr. Ho Thi Thu Hoa
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Contents
1. Chapter 5: Third Party Logistics
2. Chapter 6: Global Transportation-Incoterms
3. Chapter 7: Transportation Risk Management
4. Chapter 8: Transportation Planning: Supply and Demand
5. Chapter 9: Route choice and static assignment
6. Chapter 10: Network design
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References
1.
Coyle, John J., Robert A. Novack, Brian J. Gibson (2016), Transportation A global supply chain perspective,
8th edition. South-Western Cengage, Boston. (Core book)
2.
E. Cascetta (2009), Transportations systems analysis: models and applications. Springer
3.
Bowersox, Donald J., Closs, David J., Cooper M. Bixby, and Bowersox, John C, Supply Chain Logistics
Management, 4th edition, McGraw-Hill/Irwin, Burr Ridge.
4.
Christopher, M. (2011), Logistics & supply chain management, 4th ed, FT Prentice Hall: Harlow
5.
Alan Harrison and et. (2014), Logistics management and strategy competing through the supply chain (fifth
edition), Pearson
6.
Thorben Seiler (2012), Operative Transportation Planning Solutions in Consumer Goods Supply Chains.
Springer
7.
Rodrigue, J-P., Comitos, C., Slack, B. (2013) The Geography of Transport Systems, 3rd ed, Routledge:
Albington
https://www.researchgate.net/publication/318837359_The_Geography_of_Transport_Systems
/link/5a979fca0f7e9ba42974dece/download
Cited from Dr Nguyen Van Hop: Teaching materials for INTERNATIONAL TRANSPORTATION & LOGISTICS
3
Structure of Final Test
1. Question 1: (20 points)
2. Question 2: (20 points)
3. Question 3: (30 points)
4. Question 4: (30 points)
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Contents
Chapter 5: Third Party Logistics
1.
2.
3.
4.
Outsourced Logistics Providers
Overview of the 3PL Industry
Overview of 3PL Users
Establishing and Managing 3PL
Relationships
5. Strategic Needs of 3PL Users
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Chapter 5: Third Party Logistics
•Primary Types of 3PLs services, example of services
and logistics service providers doing business in
Vietnam market
•Establishing and Managing 3PL Relationships: process
and detail steps, examples
•Logistics outsourcing: pros and cons
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Contents
Chapter 6: Global Transportation-Incoterms
1.
2.
3.
4.
Overview of Global Transportation
Global Transportation Planning - Incoterms
Global Transportation Execution
Issues and Challenges for Global Supply
Chains
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Chapter 6: Global Transportation-Incoterms
• Understand, explain and apply Incoterms 2020 for a specific
case/shipment, eg:
1. Select appropriate modes of transport should be used?
2. Which terms should exporter (seller) buy cargo insurance?
3. Which terms should importer (buyer) buy cargo insurance?
4. Which terms are inappropriate for container goods?
5. According to the above cost table, calculate the total cost which are
paid by the Seller and the Buyer in each term? (Cargo insurance, you
explain which term, seller and buyer must or should be in charge)
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Incoterms 2020: structure
Incoterms 2010: structure
+ Sea & IWT: FOB, FAS, CIF, CFR.
+ All modes of transport: EXW, FCA,
CPT, CIP, DAT, DAP, DDP
+ Sea & IWT: FOB, FAS, CIF, CFR.
+ All modes of transport: EXW, FCA, CPT,
CIP, DPU, DAP, DDP
+ DPU: only term requires the seller to
unload goods at destination
q “E”- term
q
ü EXW
Ex Works
q “F”- terms
Free Carrier
ü FAS
Free Along Ship
ü FOB
q “C”- term
ü
q
ü FCA
“E”- term
Free On Board
q
EXW
Ex Works
“F”- terms
ü
FCA
Free Carrier
ü
FAS
Free Along Ship
ü FOB
“C”- term
Free On Board
ü
CFR Cost and Freight
ü
CFR
ü
CIF Cost, Insurance and Freight
ü
CIF Cost, Insurance and Freight
ü
CPT Carriage Paid To
ü
CPT Carriage Paid To
ü CIP Carriage and Insurance Paid to
q “D”- terms
ü
DAP
Delivery at Place
ü
DPU
Delivered at place unloaded
ü
DDP
Delivered duty paid
q
Cost and Freight
ü CIP Carriage and Insurance Paid to
“D”- terms
ü
DAT
Delivery at Terminal
ü
DAP
Delivery at Place
ü
DDP Delivered Duty Paid
PGS. TS. Hồ Thị Thu Hòa
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Chapter 7: Transportation Risk Management
Understand and know how to apply into practice:
1. The Concept and role of Risk management
2. The Basic Risk Types
3. Transportation Risk Management Process and
Techniques
4. Security Regulations and Initiatives
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Risk Management Process
Ù
Ù
Determine the potential
transportation
disruptions
1 Identify
2 Analyze
4 Review
3 Manage
Ù
Monitor and
update the plan,
identify new risks
Evaluate the likelihood
and impact of each
disruption
Ù
Apply risk
management and
mitigation strategies
Risk Matrix
R (Risk) = C (Consequence) x L (Likelihood)
Assoc. Prof. Dr Ho Thi Thu Hoa
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Table 1: Consequence Score (C)
Assoc. Prof. Dr Ho Thi Thu Hoa
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Table 2: Likelihood Score (L)
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Table 3: Risk Grading Matrix
Assoc. Prof. Dr Ho Thi Thu Hoa
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Risk Grading Matrix…
…will give a scored risk rating of either:
Low
Moderate
High
Extremely High
–
–
–
–
Green => acceptable
Orange (Amber?) => acceptable with mitigation
Red => unacceptable
Purple => unacceptable
Assoc. Prof. Dr Ho Thi Thu Hoa
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• You are provided the following
table from ABA logistics
company which includes detail
information of 4 risk cases:
Risk case 1
Risk case2
Risk case3
Risk case4
Probability
15%
27%
69%
85%
Financial
loss (USD)
2 000
3 850
40 250
117 000
Budget
(USD)
250 000
350 000
1 150 000
2 250 000
Business
interruption
1 hours
5 hours
24 hours
2 days
Questions:
A/ Identify location for the risk cases on risk grading matrix.
B/ Assess risk rating according to 4 levels (Low, Moderate, High and Extremely High) and
suggest consideration level for reducing or mitigating risk.
Assoc. Prof. Dr Ho Thi Thu Hoa
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• A/ Identify location for the risk cases on risk grading matrix.
• R (Risk) = C (Consequence) x L (Likelihood) (5 mks)
• - From probability, we can identify likelihood score
• - From Financial loss and budget, we can calculate financial loss
consequence
• - From financial loss consequence and Business interruption, we can
identify consequence score
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Case 1
Case 2
Case 3
Case 4
15%
27%
69%
85%
Unlikely
Possible
Likely
Almost certain
0.8% budget
1.1% budget
3.5% budget
5.2% budget
2 000
3 850
40 250
117 000
Budget (USD)
250 000
350 000
Business interruption
1 hours
5 hours
24 hours
2 days
Minor
Moderate
Major
Catastrophic
Probability
Likelyhood score
Financial loss
consequence(=Financial
loss/budget*100%)
Financial loss (USD)
Consequence
1150 000
2 250 000
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Risk Grading Matrix
Consequence
Risk assessment
1. Rare (hiếm khi)
<9%
2. Unlikely (ít khi)
10-24%
3. Possible (thỉnh
thỏang)
Likelihood
25-49%
4. Likely (dễ xảy ra)
50-74%
5. Almost certain
(thường xuyên)
75-100%
1
2
3
4
5
Insignificant
(Không đáng kể)
Minor
(Ít)
Moderate
(Trung bình)
Major
(Nghiêm trọng)
Catastrophic
(Thảm khốc)
Case 1
(green)
Case 2
(orange)
Case 3
(red)
Case 4
(Purple)
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B/ Assess risk rating according to 4 levels (Low,
Moderate, High and Extremely High) and suggest
consideration level for reducing or mitigating risk.
Assoc. Prof. Dr Ho Thi Thu Hoa
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Risk Grading Matrix…
…will give a scored risk rating of either:
Low
Moderate
High
Extremely High
–
–
–
–
Green => acceptable
Orange (Amber?) => acceptable with mitigation
Red => unacceptable
Purple => unacceptable
Assoc. Prof. Dr Ho Thi Thu Hoa
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Chapter 8: Transportation Planning: Supply and Demand
Understand and know how to apply into practice:
1. Transportation Supply
2. Transportation Demand
3. Port planning (core part)
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Transport network and accessibility
1. Accessibility
# of locations
Accessibility is the measure of the
capacity of a location to be reached by, or
to reach different locations. Therefore, the
capacity and the arrangement of
transport infrastructure are key elements
A
in the determination of accessibility.
1
1
2
2
Distance
(A) Uniform distribution
(B) Clustering in central area.
(C) Clustering in periphery.
1
B
1
Source: Rodrigue, J-P et al. (2018) The
Geography of Transport Systems, Hofstra
University, Department of Global Studies &
Geography.
C
2
2
1
1
2
2
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Transport network and accessibility
2. Connectivity
Connectivity: where a network is represented as a connectivity matrix (C1),
which expresses the connectivity of each node with its adjacent nodes.
A basic network
connectivity
Connectivity Matrix
Network
B
A
C
D
E
A
B
C
D
E
A
0
1
1
1
0
B
1
0
1
0
0
C
1
1
0
1
1
D
1
0
1
0
0
E
0
0
1
0
0
Source: Rodrigue, J-P et al. (2018) The Geography of Transport Systems, Hofstra University,
Department of Global Studies & Geography.
Assoc. Prof. Dr. Ho Thi Thu Hoa
Geographic accessibility: considers
that the accessibility of a location is the
summation of all distances between other
locations divided by the number of
locations. The lower its value, the more a
location is accessible.
+Under this method, the location with
the shortest total distance to other
locations will have the highest
geographical access index.
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Transport network and accessibility
3. Geographic accessibility
L
8
B
A
4
7
C
D
5
6
E
+ C?
A
B
C
D
E
A
0
8
4
9
15
B
8
0
7
12
18
C
4
7
0
5
11
D
9
12
5
0
6
E
15
18
11
6
0
Eg: Based on the information given in below
figure, please assess the geographical
accessibility of places A, B, C, D and E
A(G)
Source: Rodrigue, J-P et al. (2018) The Geography
of Transport Systems, Hofstra University,
Department of Global Studies & Geography.
A
B
C
D
E
 /n
A
0
8
4
9
15
7.2
B
8
0
7
12
18
9.0
C
4
7
0
5
11
5.4
D
9
12
5
0
6
6.4
E
15
18
11
6
0
10.0
 /n
7.2
9.0
5.4
6.4
10.0
38.0
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Transport network and accessibility
4. Potential accessibility: Potential accessibility is a more complex measure than geographic accessibility,
since it includes simultaneously the concept of distance weighted by the attributes of a location. All locations are
not equal and thus some are more important than others.
L
1200
8
A
4
7
C
1500
B 900
5
600
D
E 800
6
P
A
B
C
D
E
A
0
8
4
9
15
A
1200
B
8
0
7
12
18
B
900
C
4
7
0
5
11
C
1500
D
9
12
5
0
6
D
600
E
15
18
11
6
0
E
800
A(P) = potential accessibility matrix.
dij = distance between place i and j (derived from valued graph matrix).
Pj = attributes of place j, such as its population, retailing surface, parking
space, etc.
n = number of locations.
Source: Rodrigue, J-P et al. (2018) The Geography of Transport Systems, Hofstra University,
Department of Global Studies & Geography.
Assoc. Prof. Dr. Ho Thi Thu Hoa
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Transport network and accessibility
Higher value: higher potential accessibility
i\j
A
B
C
D
E
∑i
A
1200.0
150.0
300.0
133.3
80.0
1863.3
B
112.5
900.0
128.6
75.0
50.0
1266.1
C
375.0
214.3
1500.0
300.0
136.4
2525.7
D
66.6
50.0
120.0
600.0
100.0
936.6
E
53.3
44.4
72.7
133.3
800.0
1103.7
∑j
1807.4
1358.7
2121.3
1241.6
1166.4
7695.4
Emissiveness: row
Attractiveness: column
Source: Rodrigue, J-P et al. (2018) The Geography of Transport Systems, Hofstra University,
Department of Global Studies & Geography.
Assoc. Prof. Dr. Ho Thi Thu Hoa
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Chapter 9: Route choice and static assignment
1. Route Choice Models
2. Assignment with Implicit
Path Enumeration
3. Cases (core)
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• Understand how to apply the theory into practice to
select the appropriate route for a specific shipment
• What information will you need from your customers
to issue the transport documents for the shipment
• The function and classification of B/L
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Chapter 10: Network design
1. Transportation Supply
Design Problem
2. Models for Road Network
Layout Design
3. Models for Road Network
Capacity Design
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• Diffused network. An extended service would be characterized by low frequencies and smaller
shipments, resulting in high rates on many segments of the network. This is particularly the
case for peripheral nodes.
• Centralized network. A centralized network structure (right side) has less links and a
consolidation of flows at hubs. It results in lower rates on several segments that have a higher
frequency of service, notably those between hubs. The peripheral nodes have less direct
connections, but are subject to lower rates.
Source: Rodrigue, J-P., Comitos, C., Slack, B. (2013
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Good luck for Final Test!
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