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1RMIT Classification: Trusted RMIT UNIVERSITY – MELBOURNE CITY CAMPUS, AUSTRALIA School of Accounting, Information Systems and Supply Chain OMGT2088 INTERNATIONAL LOGISTICS Class Test 1Duration: 120 minutes INSTRUCTIONS1.Answer ALL questions. 2.Be honest, no communication via electronic means with other students Student’s name: Aditya Seth Student’s ID: s3751759
2RMIT Classification: Trusted SECTION A: TRUE/FALSE STATEMENTS For each of the following statements, checkthe TRUE box if you think the statement is correct, or FALSE box otherwise (0.5 marks each). SQ Statements True False 1
Piggyback transport refers to the transfer of containers from trucks to railcars. ☐☒2
The efficiency of intermodal transport services does not depend on the coordination of transport service schedules and operations since ‘just in time’ arrival of shipments is not required. ☐☒3 Supplier or brand specification is not considered a serious procurement problem. ☐☒4 Sea transport is suitable for low-value high-volume cargo over long distances. ☒☐5 Under the DDP term in Incoterms 2020, the seller fulfills his responsibility when the vessel, with cargo onboard, arrives the port of discharge. ☐☒6 Intermodal transport refers to the movement or transfer of freight and/or passengers on two or more transport vehicles, such as from a small ship to a bigger vessel. ☒☐7 Under the FOB term in Incoterms 2020, the seller is responsible to charter the ship and pay for ocean freight to transport his cargo to the port of destination. ☐☒8 For a computer manufacturer such as Dell, ink toners for printers that the company purchases are considered commodities. ☐☒9 The use of EX WORKS term in Incoterms 2020 implies the maximum responsibility for the buyer in international trade. ☒☐10 The use of Incoterms is legally binding but practically not imposed in international trade. ☐☒11 Under the CIF term in Incoterms 2020, the seller fulfills his responsibility when the cargo is loaded onboard the vessel at the port of loading. ☐☒12 The use of an Incoterm in the contract of sales has no relationship with who shall be the charterer in the contract of carriage. ☐☒13 In international trade, payment by an L/C does not enable the exporter to access funds before payment is made by the importer. ☐☒14 For a shipping company such as Australian National Line which does not have a trucking fleet on their own, trucking service that the company purchases from Lindfox to provide their customers with door-to-door services are considered distinctives. ☐☒15 In an integrated logistics system, the choice of transport mode has direct impacts on inventory and storage costs. ☒☐16 Transport cost is the most important logistics cost element upon which an optimal logistics solution is based. ☒☐17 A firm must keep high level of inventory to provide customers anything they want at any time and place they want. ☐☒18