1) Answer the questions.

1. How do you understand the expression ‘time window’?

2. What does the abbreviation VRI stand for?

3. What are VRI restrictions?

4. How many principles for good routing and scheduling do you know? What are they?

5. Which of them are the most important and why?

2) Make word combinations.

1. capacity	a) window
2. truck	b) travel
3. time	c) efforts
4. route	d) limitations
5. interstop	e) depot
6. realistic	f) operation
7. frustrate	g) stops
8. control	h) principles
9. multiple	i) restrictions
10. guideline	j) cluster

3) Fill in the text with prepositions from the brackets (at, of, around, in, between, by, before, on, toward, after, from, with, to). Some of them may be used more than once.

1. Truck routes should be formed _________ clusters of stops that are nearest each other ___________ order to minimize the interstop travel __________ them.

2. Drivers may be allowed to take short rests _________ times __________ the day.

3. Decision makers can go a long way _________ developing good truck routes and schedules _________ applying 8 guideline principles.

4. A maximum total driving time is allowed __________ a route __________ a rest period of _________ least 10 hours.

5. Pickups may be permitted ___________ a route only __________ deliveries are made.

6. These restrictions add a great deal _________ complexity _________ the problem and frustrate our efforts to find an optimal solution.

7. Build routes beginning _______ the farthest stop _______ the depot.

Part 4. Incoterms.

International Shipping Terms

Most firms today do at least some international buying, and many are heavily involved in global sourcing. Consequently, purchasing and supply people should be familiar with international shipping terms, better known as Incoterms. Incoterms are rules dealing with the international transportation of materials and are published by the International Chamber of Commerce, headquartered in Paris; they are recognized as the international standard. The thirteen terms are grouped into four categories, and each describes the obligations of the supplier and the buyer with respect to packing materials for shipment, obtaining import or export licenses, delivery, payment for carriage and insurance, and the risk of loss. The Incoterms currently in use are summarized briefly in Table below.

Definition and Classification of Incoterms.

Group E	Goods are made available at the supplier’s named site. Buyer assumes all responsibility for transportation, cost, and risk beyond this point.	EXW Ex works (supplier’s site).
Group F	Supplier delivers goods to specified carrier location. Buyer assumes all costs and risks associated with the main carriage and beyond.	FCA Free carrier at a named place. Supplier clears goods for export. FAS Free alongside ship (on dock). Buyer clears goods for export. FOB Free on board (on ship). Supplier clears goods for export.
Group C	Supplier contracts for main carriage and assumes all costs to the destination country. Buyer assumes all risks during main carriage, plus cost of delivery from destination dock to buyer’s site.	CFR Cost and freight to the port of destination. Supplier clears goods for export. CIF Cost, insurance, and freight to the port of destination. Same responsibilities as CFR, except supplier is responsible for insurance during main carriage. CPT Carriage paid to the named destination. Supplier clears goods for export. CIP Carriage and insurance paid to the named destination. Same responsibilities as CPT except supplier covers insurance during main carriage.
Group D	Supplier assumes all risks and costs to the specified destination.	DAF Delivered at frontier (country border) at a specified location, but before the customs border of the adjoining country. Supplier cleats goods for export. DES Delivered ex ship at specified port of destination. Goods are available aboard ship, uncleared for import. DEQ Delivered ex quay (dock) at the named port of destination. The duty can be paid or unpaid, depending on the agreement. DDU Delivered duty unpaid at the specified place of destination. DDP Delivered duty paid at the specified place of destination. Supplier bears all risks and costs, including duties, taxes, and other charges of delivering the goods, cleared for import.

Incoterms have become part of the contract for an international procurement. And clearly they have a significant impact on the delivered cost. It is important to ensure that the Incoterms specified in the contract match identically the payment terms specified in the letter of credit the buyer uses for payment to the international supplier.

Comprehension.

1. What are Incoterms?

2. Who defines them?

3. Why are they important?

4. Why ate they divided into groups and what are these groups?

5. Why should a logistician be familiar with the international shipping terms?

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