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ASSIGNMENT
DRIVE SUMMER 2014
PROGRAM MBADS – (SEM 4/SEM 6) / MBAN2 / MBAFLEX – (SEM 4) /
PGDFMN – (SEM 2)
SUBJECT CODE & NAME SC0006 – GLOBAL LOGISTICS AND SUPPLY CHAIN
MANAGEMENT
SEMESTER 4
BK ID B1661
CREDITS 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q.1 Assume that you are working in a textile company. Your company decides to import all the
raw materials cotton clothing from the global suppliers to improve the sales. The company assigns
you the task of analysing various issues that must be considered while importing. What are
different issues you face while importing the goods from a global supplier?
Ans : Conducting business overseas always carries risks. The business culture may be different, or
there may be different regulations that you aren't aware of. The risk of confusion can be particularly
high if your suppliers speak a different language. Different countries can also present other potential
problems. For example, a country could suddenly introduce new export controls or suffer a natural
disaster. Market research is an important way of reducing these risks. The more you find out about a
country and its politics, economy, culture and
Q.2 Insurance Claim by Jayshri Impex: Jayshri Impex is one of India's leading garment
manufacturer and exporter of textile dyes and chemicals whose manufacturing facility is located
at Jethpur (near Rajkot), Gujarat. The head office of the company is at Mumbai. The company
manufactures an African traditional dress worn by all natives of African cities - "khanga". Jayshri
Impex has set high standards in garment export and it is recognised by the government of India for
its extraordinary work. They have their presence in other cities of India as well as in Africa.
Theft of goods:

2. Armed bandits on October 5, 2004, looted the export consignment of 185 bales of fabrics from the
train, when it was transported to Brazzaville (Republic of Congo, West Africa). The company had
insured their cargo with Bajaj Allianz and lodged a claim at the Bajaj Allianz, Rajkot office on the
same day.
Insurance support from Allianz:
Even though the location of theft was in the remote jungles of Africa, Bajaj Allianz appointed
Lloyd's Agency to carry out a survey immediately to check for the correctness of the claim. Lloyd's
was submitted on the survey report on November 20, 2004. It took a month for Lloyd's to submit
the report due to the procedural formalities involved in Africa to procure documents like police
papers and no trace reports. Since the survey report was submitted in French a translation of the
same was done at Ahmedabad on November 23, 2004. The Insured submitted all the remaining
documents such as Power of Attorney, Original Bill Of Landing, NOC from Consignee, etc on
November 25, 2004 from their Head Office at Mumbai. The claim was processed and based on the
survey findings it was found to be true and the insurance amount of Rs.31,37,360/- was released
on November 30, 2004.
Inference
Jayshri Impex managed to avoid a huge loss thanks to the insurance that it had purchased. The
insurance company Bajaj Allianz also responded quickly and supported its client by releasing the
amount at the earliest.
Why did Jayshri Impex claim for insurance? What type of insurance may Jayshri Impex opted for.
How did the insurance company help Jayshri Impex?
(Source:http://general.bajajallianz.com/BagicCorp/bajaj_home/claims/case_study.jsp)
Ans: Reason for claiming insurance:
Jayshri Impex is a leading garment manufacturer and exporter of textile dyes and chemicals. The
manufacturing facility is located at Jethpur (near Rajkot), Gujarat while the head office is at Mumbai.
Jayshri Impex manufactures "khanga" - an African traditional dress worn by all natives of African
cities. Armed bandits on October 5, 2004, looted the export consignment of 185 bales of fabrics
from the train, when it was transported to Brazzaville (Republic of Congo, West Africa). The
company had insured their cargo with Bajaj
Q.3 Explain in detail about INCO terms.
Ans: Definition of INCO terms:
The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms
published by the International Chamber of Commerce (ICC) that are widely used in International
commercial transactions or procurement processes
What do they indicate:

3. A series of three-letter trade terms related to
Q.4 Name the two types of rate making and explain the factors affecting air freight rates.
Ans: Discussion of freight rates (general and specific commodity rate) with example:
A freight rate (historically and in ship chartering simply freight) is a price at which a certain cargo is
delivered from one point to another. The price depends on the form of the cargo, the mode of
transport (truck, ship, train, aircraft), the weight of the cargo, and the distance to the delivery
destination. Many shipping services, especially air carriers, use dimensional weight for calculating
the price, which takes into account both weight and
Q.5 Write short notes on:
a. Bareboat Charter
b. Combination vessels
c. Importance of free trade zones
d. Dry ports in India
Ans :a. Bareboat Charter:
A bareboat charter is an arrangement for the chartering or hiring of a ship or boat, whereby no crew
or provisions are included as part of the agreement; instead, the people who rent the vessel from
the owner are responsible for taking care of such things.
There are legal differences
Combination vessels:
An ore-bulk-oil carrier, also known as combination carrier or OBO, is a ship designed to be capable of
carrying
Importance of free trade zones:
A free trade zone (FTZ), also called foreign-trade zone, formerly free port, is an area within which
goods may be landed, handled, manufactured or reconfigured, and re exported without the
intervention of the customs authorities
Dry ports in India:
A dry port, also called sometimes an inland port or multimodal logistics centre, is an inland terminal
connected to a seaport by rail or road.

4. Q.6 Explain the global trends that affect the decision of a global logistics manager
Ans: Explanation of global trends:
1. Market concentration :
In economics, market concentration is a function of the number of firms and their respective shares
of the total production (alternatively, total capacity or total reserves) in a market. Alternative terms
are Industry concentration
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )