1. What advantage does Distribution Requirements Planning (DRP) have over a fair share method of inventory
deployment?
2. Compare and contrast the transport principles of economy of scale and economy of distance. Illustrate how they
combine to create efficient transportation.
3a. A chemical plant consumes sulfuric acid in a certain process at a uniform rate. Total annual consumption is 25,000
gallons. The plant produces its own sulfuric acid and can set up a production run for a cost of $4,000. The acid can be
stored for $21 per gallon per year, including all carrying cost (cost of capital as well as cost to hold in storage). The
production rate is so rapid that inventory depletion during production may be ignored.
What is the EOQ? Provide computations for full credit
3b. The provincial government uses massive quantities of computer printer paper, which it buys centrally. The purchasing
department calculates an economic order quantity based on an assumed carrying-cost rate of 30% per year. A box of
printer paper cost $45, it costs $80 to process an order, and annual demand is for 44, 000 boxes of paper.
i. What is the EOQ? Provide computations for full credit
4. What is a shipper's responsibility when terms of purchase are F.O.B. origin? F.O.B. destination? Why would a shipper
prefer one over the other?
5. What is the role of the freight bill and the bill of lading in a transportation transaction?
6. Under what conditions could it make sense to combine private and public warehouses in a logistical system?
7. What is the primary purpose of bar codes or Radio Frequency Identification (RFID) in different in packaging? Is the
role different in materials handling?
IMPORT/EXPORT
8. As an aspiring entrepreneur discuss how you'll lunch your business on the web in a potential foreign market considering
the sociocultural factors.
9. Discuss these two forms of financing in international Trade: Secured and Unsecured.
10. Discuss the types of risks for doing business in the global market and how to avoid them.