Itl 24-25 HW1
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ngọc nguyễnItl 24-25 HW1
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ngọc nguyễnHomework 1
📌INSTRUCTIONS
1. The deadline for this assignment is 11:59 PM - Monday, October 21st, 2024.
2. All homework assignments must be completed individually and independently.
Cheating is strictly forbidden. Therefore, students will receive zero points where
cheating occurred.
3. Clearly write your name, student ID and class (i.e., G01_Mon_123, G02_Mon_456 or
G03_Thu_123) at the top of every submitting paper.
4. Your homework must be HAND-WRITTEN and well readable with the provision of
detailed formula, explanation, and conclusion. Answers without calculation steps
will not receive credit. Kindly sort your answers in the same order as in the
announced homework problem list and write legibly.
5. The homework must be scanned (by CamScanner, Microsoft Lens, etc.), compiled
into a single PDF file (other file formats like DOCX, etc. will NOT be accepted) and
submitted on Blackboard. Each student will have TWO attempts of submission. The
file name will follow the given format: ITL-HW1-[FullName]-[StudentID].
Here is an example: ITL-HW1-NguyenVanAn-IELSIU21021.
6. Students must follow the deadlines for submission. The penalty for late submission
is as follows:
● Late submission 1 day: - 10%
● Late submission 2 days: - 20%
● Late submission 3 days: - 30%
● No submission: - 100% (After 3 days, the assignment on Blackboard will be hidden, at
11:59 - Thursday, October 24th, 2024.)
7. We will strictly follow the above policy and there will be no exceptions.
8. Solutions will be uploaded towards the end of Week 8, after the deadline for late
submission is due.
Notes:
● You can use Excel to re-check the results after finishing the assignment. However, it
is strongly advised to do it on paper first and calculate using the scientific
calculator; this is a good chance for you to practice at home and become
well-prepared for the upcoming exam. For your information, during the midterm
and final exams, students are not allowed to bring laptops, mobile phones or
electronic devices into the examination room, meaning that you will write your
answers on the answer sheets and solve all problems with your calculator ONLY.
● Most importantly, please avoid using AI tools for your responses, as they won't be
accessible in the examination setting. It's essential to rely on your own knowledge
and research skills to expand your understanding of the subject matter (e.g.,
reading books, reading news articles/journals, searching on Google, etc.).
INTERNATIONAL TRANSPORTATION & LOGISTICS – SEMESTER 01 – 2024-2025
📋PROBLEM SET
🖊️Problem 1 (10 points)
There are two producers located 800 kilometers apart. Producer A has a production cost of
$50 per unit and transportation cost of $0.70 per unit per kilometer. Producer B has a
production cost of $50 per unit but a transportation cost of $0.50 per unit per kilometer.
The extent of the market between the two producers is the point at which their landed
costs of A is equal to the landed cost of B.
Questions:
a. Given that x is the distance between Producer A’s plant and the limit of the market
area. Find x.
b. Which producer has a greater market area than the other with the lower transport
cost?
🖊️Problem 2 (20 points)
A Free Trade Agreement (FTA) is an agreement between two or more countries where the
countries agree on certain obligations that affect trade in goods and services, and
protections for investors and intellectual property rights, among other topics. While the
specifics of each FTA vary, they generally provide for the reduction of trade barriers and
the creation of a more predictable and transparent trading and investment environment.
Questions:
a. Create a table and list out the currently effective FTAs of Vietnam up to October
2024 using the following format.
No. FTA Partners
1 VCFTA Vietnam, Chile
2 AFTA ASEAN
…
b. In your opinion, what are the key benefits of Free Trade Agreements?
c. How do FTAs affect Vietnam's ability to attract foreign direct investment (FDI)?
Explain and provide examples to justify your answer.
🖊️Problem 3 (20 points)
Answer and provide explanation for the following questions about the two types of
transport: multimodal and intermodal.
a. What is multimodal transport? What is intermodal transport?
1
INTERNATIONAL TRANSPORTATION & LOGISTICS – SEMESTER 01 – 2024-2025
b. Can both multimodal and intermodal transport involve the use of multiple modes of
transportation (e.g., rail, sea, road)? If so, how does this integration differ?
c. Which type of transport, multimodal or intermodal, typically involves a single
contract covering the entire shipment process?
d. Which type of transport, multimodal or intermodal, provides more flexibility in
choosing carriers for different segments of the shipment?
e. In which type of transport, multimodal or intermodal, is the tracking and tracing of
cargo managed through a single logistics provider?
f. Which type of transport, multimodal or intermodal, might be more beneficial for
companies seeking to reduce administrative complexity in international shipments?
g. In what scenarios would a company prefer intermodal transport over multimodal
transport, and why?
🖊️Problem 4 (30 points)
Meadow Fresh regularly delivers products to five major retailers (R) each morning from its
distribution center (DC). The distances matrix (Euclidean) and their daily requirements are
given in table below:
DC R1 R2 R3 R4 R5 Demand (units)
DC 0 53.06 39.75 54.50 40.87 25.47 -
R1 0 87.43 47.19 87.92 61.39 70
R2 0 81.03 55.89 64.42 204
R3 0 90.00 25.90 257
R4 0 25.83 189
R5 0 105
The company operates a fleet of several delivery trucks, each with a capacity of 500 units.
Assuming that the travel cost between any two locations can be determined by Euclidean
distances. In your role as the transport coordinator at Meadow Fresh, your task is to apply
Clarke-Wright Algorithm to devise a delivery pattern that accomplishes two objectives:
satisfying customer demand and minimizing delivery expenses, while ensuring that the
delivery trucks' capacity limit is not surpassed.
Questions:
a. Identify the savings matrix.
b. Rank the savings.
c. Allocate retailers to each delivery truck. How many delivery trucks does Meadow
Fresh need?
d. Arrange the order of retailers within the routes.
2
INTERNATIONAL TRANSPORTATION & LOGISTICS – SEMESTER 01 – 2024-2025
🖊️Problem 5 (20 points)
ExpressCargo Inc. is faced with the need to make approximately 120 trips per year to
transport materials from Ho Chi Minh City to Da Nang. The company is considering two
options to meet this transportation demand effectively:
Option 1: Purchase a New Truck
ExpressCargo Inc. has the option to buy a brand-new truck for 471,590 USD. The
depreciation for this truck will be calculated using a straight-line method over a
seven-year period. The company will also incur various annual operating costs if they opt
for this solution.
The annual operating costs for the purchased truck include:
● Fuel costs: Estimated at 7,250 USD per year to keep the truck running efficiently.
● Depreciation: The truck's purchase price will be depreciated in a straight-line
manner over seven years.
● Interest expenses: The company expects to incur an annual interest expense of
10%, which accounts for financing the truck purchase.
● Labor expenses: ExpressCargo Inc. will need to allocate funds for labor costs,
which are expected to amount to 20,000 USD annually.
Option 2: Hire Truck Services from a 3PL Logistics Company
Alternatively, ExpressCargo Inc. can opt for the services of a third-party logistics (3PL)
company to meet their transportation needs. The 3PL logistics company offers a truck
rental service at a cost of 2,050 USD per trip. This alternative provides flexibility in terms
of not owning and depreciating a truck. However, it involves direct costs associated with
each trip. These costs can be more predictable compared to the ownership option, but
they may have different financial implications.
ExpressCargo Inc. must now evaluate these two options to determine which is more
economically viable for their transportation needs while considering factors like
cost-effectiveness, depreciation, and the direct costs associated with renting a truck from
the 3PL logistics company. This decision will significantly impact the company's operational
and financial strategies, ensuring they make the most cost-effective choice for their
business.
Questions:
a. Compute the cumulative expenses associated with both options throughout the
7-year horizon.
b. Considering the long-term perspective, which of the two options, purchasing or
renting, would prove to be the more advantageous choice for meeting the
transportation requirements of ExpressCargo Inc? Using either graphical
representation OR calculated break-even analysis to justify your answer.