assignment
This question paper must be returned Candidates are not permitted to remove any part of it from the exam room Name: Student ID: Signature: EXAMINATION PAPER Term2021 February Trimester Unit Code & DescriptionECO803 - International Trade and Logistics Lecturer/sAli Alavi Exam Date 23 April to 2 May 2021 Exam Time Duration Number of Questions4 Total Marks100 Exam Weighting40 Materials PermittedLaptop Computer / Tablet, INSTRUCTIONS Please answer all questions listed below in a separate file (DOC or PDF) and submit it to Assessment 3 (Final Exam) You are required to use in-text citations to justify your answers. Turnitin dropbox in ECO803 Moodle site by the end of the day (23:59) on Sunday, 2 May 2021. Please note that the total length of the final exam answers cannot be longer than 2,000 words. If you have any technical issues, please contact the lecturer, Dr Ali Alavi by email (
[email protected]) or mob. phone (0498449203). Section Question Type No Questions Possible Marks Marks Achieved % 1 Long Answer 2 70 2 Case Study 1 30 TOTAL 4 100 LECTURER COMMENTS SECTION 1 - LONG ANSWER SECTION 1 - LONG ANSWER Answer the questions below in approx. 1400 words. (Max. 70 marks). Please answer question 1 in approx. 800 words (Max 40 marks) and question 2 in approx. 600 words (Max 30 Marks). 1 Refer to your assignment 1 and determine what would be the ideal Incoterms® rule for a transaction. Make as many assumptions as necessary to justify your decision. Also, determine what would be the best method of entry for both products to enter China’s market. Justify your answers using the factors influencing entry decisions. [40.00 marks] 2 Choose a perishable product like Meat and poultry and review order processing, inventory control, and transportation decisions for that product from point A (Seller) to point B (Buyer). Please discuss the decisions needs to be taken from order processing to information. [30.00 marks] END OF SECTION 1 SECTION 2 - CASE STUDY SECTION 2 - CASE STUDY Read the Case Studies and answer the questions below in approx. 600 (Max. 30 marks) 1ZARA Zara is a chain of fashion stores owned by Inditex, Spain's largest apparel manufacturer and retailer. In 2012, Inditex reported sales of about 16 billion euros from more than 6,000 retail outlets in about 86 countries. In an industry in which customer demand is fickle, Zara has grown rapidly with a strategy to be highly responsive to changing trends with affordable prices. Whereas design-to-sales cycle times in the apparel industry have traditionally averaged more than six months, Zara has achieved cycle times of four to six weeks. This speed allows Zara to introduce new designs every week and to change 75 percent of its merchandise display every three to four weeks. Thus, Zara's products on display match customer preferences much more closely than do those of the competition. The result is that Zara sells most of its products at full price and has about half the markdowns in its stores compared with the competition. Zara manufactures its apparel using a combination of flexible and quick sources in Europe (mostly Portugal and Spain) and low-cost sources in Asia. This contrasts with most apparel manufacturers, who have moved most of their manufacturing to Asia. About 40 percent of the manufacturing capacity is owned by Inditex, with the rest outsourced. Products with highly uncertain demand are sourced out of Europe, whereas products that are more predictable are sourced from its Asian locations. More than 40 percent of its finished goods purchases and most of its in-house production occur after the sales season starts. This compares with less than 20 percent production after the start of a sales season for a typical retailer. This responsiveness, along with the postponement of decisions until after trends are known, allow Zara forecast error. Zara has also invested heavily in information technology to ensure that the latest sales data are available to drive replenishment and production decisions. In 2012, Inditex distributed to stores all over the world from eight distribution centres located in Spain. The group claimed an average delivery time of 24 to 36 hours for European stores and up to a maximum of 48 hours for stores in America or Asia from the time the order was received in the distribution centre (DC) to the time it was delivered to the stores. Shipments from the DCs to stores were made several times a week. This allowed store inventory to closely reduce inventories and match customer demand. (Source: Coyle, J.J., Supply Chain Management: A Logistics Perspective) [30.00 marks] a. What are the sourcing decision and strategies Zara can take to reduce the relative cost and supply exposure risk? [15 Marks] b. What are the issues Zara might face in terms of warehousing and inventory strategies if the company continues the cycle times of four to six weeks? [15 Marks] END OF SECTION 2 ECO803 - International Trade and Logistics : Official Exam - Not Scheduled YetPage 1/3 ECO803 - International Trade and Logistics : Official Exam - Not Scheduled YetPage 1/3 ECO803 - International Trade and Logistics : Official Exam - Not Scheduled YetPage 1/3