46 Questions
What is one of the benefits of enhancing the speed of order entry and processing?
Reducing lead-time
How does better management of inventory impact delivery?
Reduces delivery costs
Which of the following is NOT a role of the stock management system?
Improving customer service
Which aspect of stock management can be made more accurate through the system?
Administration
How can warehouse planning and utilisation benefit customer service?
By being more cost-effective
Which of the following is a benefit of ICT on supply chain communications?
Faster communications
How does ICT impact inventory management in the supply chain?
It allows for just-in-time ordering systems
What is one way ICT contributes to streamlined administration in supply chains?
It simplifies and automates administrative tasks
Which of the following illustrates ICT's role in information sharing within supply chains?
Enhanced collaboration platforms
What benefit does ICT provide to the relationship with suppliers and partners in the supply chain?
Closer links with suppliers and partners
What is the primary goal of Just-in-Time (JIT) planning?
To deliver materials just before they are needed
What is a disadvantage of materials arriving too early in a JIT system?
It wastes time and resources by sitting and waiting
How does JIT differ from traditional material planning approaches?
JIT coordinates the arrival of materials just before they are needed
Why might customers be dissatisfied with a service that arrives after the expected time in a JIT system?
It delivers poor customer service
What role does MRP (Material Requirements Planning) play compared to JIT?
MRP coordinates material arrival with demand to reduce stock
What effect does JIT have on the inventory levels of a business?
Reduces inventory levels significantly
Which of the following is NOT commonly exchanged via EDI?
Marketing materials
Which of the following best describes a major advantage of EDI over email?
EDI reduces human involvement in document handling
What is one disadvantage of processing documents via email compared to EDI?
Email documents require manual handling by people
Which EDI document type would most likely be used to alert a customer about an upcoming delivery?
Advance ship notice
What type of system on the receiver's computer might directly process EDI documents?
Order Management System
What is one of the main functions of logistics within a company?
Coordinating the flow of materials through the system
Which area is NOT mentioned as having seen major advancements due to new technology in logistics management?
Marketing management
Why is accuracy important in logistics systems?
To deliver effective customer service
Which is a benefit of advancements in information systems within logistics management?
Improved warehousing management
What should a logistics system provide to deliver effective customer service?
Correct information and accuracy
Which task involves ensuring accurate logging of items arriving at the facility?
Capture delivery information accurately
What primarily helps in distinguishing distinct picking tasks based on orders?
Sort order requirements into appropriate picking tasks
What task ensures that the stock levels are consistently updated and accurate?
Maintain stock balances
Which task focuses on the efficiency and performance of the workforce within the system?
Monitor productivity and utilization
What is the main purpose of recording stock movements?
To log the changes in stock locations within the system
What is the impact of Information and Communications Technology (ICT) on storage and distribution operations?
It has a growing impact.
What is one of the benefits of current and developing communications tools?
Faster, more accurate communication.
Why is the external role of IT becoming more important?
Organizations continue to link systems.
What increased demands are placed on stores and distribution personnel?
Because of their role in supply chains and their interface with the customer.
What characteristics must an IT system have to operate a warehouse effectively?
Fast, flexible, and accurate.
What is Electronic Data Interchange (EDI)?
The movement of business data electronically between or within firms in a structured, computer-processable data format.
Which of the following is a benefit of EDI?
Provides timely and highly accurate information.
Which documents can be sent using EDI?
Invoices, bills of lading, and shipping details
How does EDI enhance the effectiveness of businesses?
By facilitating the computer-to-computer exchange of structured data.
Why is EDI considered efficient?
It eliminates the need for rekeying data from one system to another.
What is a major risk when introducing Just-In-Time (JIT) systems?
Completely new systems and operations
Why might suppliers struggle with JIT methods?
Inability to adapt to JIT methods
What does JIT require from its suppliers to ensure smooth operations?
Perfect quality of materials
What is a consequence of JIT when dealing with highly variable or seasonal demand?
Stable production requirements
Which of the following highlights a drawback of JIT in terms of customer demands?
Reduced flexibility
Study Notes
Information Systems
- ICT is having a growing impact on storage and distribution operations, enabling faster and more accurate communication between organizational control and operatives.
- The external role of IT is becoming more important as organizations link systems.
- Stores and distribution personnel have greater demands placed on them due to their role in supply chains and their interface with the customer.
Control and Information Systems Tasks
- Capture delivery information accurately
- Record stock movements
- Maintain stock balances
- Monitor productivity and utilization
- Track the movement of goods through the system
- Sort order requirements into appropriate picking tasks
Information Systems Cont.
- Logistics management requires coordination of the flow of materials through the entire system, providing accurate information and helping deliver customer service.
- New technology has led to major advances in information systems, including order processing, inventory and warehousing management, and vehicle management.
The Stock Management System Requirements
- Enhanced speed of order entry and order processing can reduce lead-time
- Warehouse planning and utilization can be more cost-effective and improve customer service
- Better management of inventory reduces delivery costs
- Administration can be more accurate
- The system maintains stock integrity by recording and identifying damage, identifying loss, and recording deterioration
Benefits of ICT on Supply Chain
- Faster communications
- Information sharing
- Track and trace systems
- Direct ordering
- Streamlined administration
- Greater information gathering potential
- Closer links with suppliers and partners
- Inventory management
Electronic Data Interchange (EDI)
- EDI is the movement of business data electronically between or within firms in a structured, computer-processable data format
- EDI permits data to be transferred without rekeying from a computer-supported business application in one location to a computer-supported business application in another location
- EDI is used by supply chain partners to exchange essential information necessary for the effective running of their businesses
- EDI provides timely, accurate, and efficient information exchange
Electronic Data Interchange (EDI) Cont.
- The most common documents exchanged via EDI are purchase orders, invoices, and advance ship notices
- EDI replaces postal mail, fax, and email
- EDI documents can flow straight through to the appropriate application on the receiver's computer, allowing for immediate processing
Principles of Just-in-Time
- Just-in-time (JIT) organizes all activities to occur at exactly the time they are needed
- JIT aims to deliver materials directly to operations and virtually eliminate stock
- JIT requires perfect quality of materials from suppliers and stable production when demand is highly variable or seasonal
Some Specific Problems of JIT
- High risks of introducing completely new systems and operations
- Initial investment and cost of implementation
- Long time needed to get significant improvements
- Inability of suppliers to adapt to JIT methods
- Reduced flexibility to meet specific, or changing, customer demands
Learn about the Just-in-Time production planning approach, which aims to reduce inventory by coordinating the arrival of materials with production schedules, improving customer service and reducing waste.
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