Supply Chain Management Overview

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Questions and Answers

What is the main purpose of a supply chain network?

To connect companies with suppliers to produce and distribute products (correct)

To manage sales and marketing activities exclusively

To centralize customer service operations

To solely focus on inventory storage

What is the first step in the order fulfillment process?

Receiving inventory shipments (correct)

Returns processing

Shipping

Order processing

Which term refers to a method of cost tracking where items are sold in the order they were purchased?

First in, first out (FIFO) (correct)

Random order processing

Last in, first out (LIFO)

Just-in-time manufacturing

What does the term 'landed cost' refer to?

The total cost of ownership of an item, including various charges Signup and view all the answers

What is back ordering?

Ordering products that are temporarily out of stock Signup and view all the answers

Which manufacturing system is associated with just-in-time manufacturing?

Toyota Production System (TPS) Signup and view all the answers

What is a consequence of implementing just-in-time manufacturing?

Reduced waste and lower inventory costs Signup and view all the answers

Which of the following statements about LIFO is true?

It sells the most recent purchases first Signup and view all the answers

What is the primary purpose of a Bill of Lading?

To indicate the quantity and type of goods being shipped Signup and view all the answers

Which Incoterm indicates that the seller has fulfilled their obligation by placing goods at their premises?

EXW Signup and view all the answers

In which Incoterm does the seller pay for both transportation costs and insurance during transit?

CIP Signup and view all the answers

What is the key characteristic of Cross Docking?

Goods are transported directly to customers with minimal storage time. Signup and view all the answers

What does the term DDP stand for in Incoterms?

Delivered Duty Paid Signup and view all the answers

Which Incoterm obligates the seller to deliver goods to an identified terminal and unload them?

DAT Signup and view all the answers

What responsibility does the seller have under the DAP Incoterm?

To deliver and unload at the buyer's location Signup and view all the answers

Which of the following is NOT a typical element included in a Bill of Lading?

Transportation insurance details Signup and view all the answers

Study Notes

Supply Chain Management

A network between a company and its suppliers to produce and distribute a specific product to the final buyer
Includes various activities, people, entities, information, and resources

Work-Flow of Supply Chain at TSM (No Details Provided)

No information about a company or specific work-flow of a supply chain at the mentioned TSM

Scope of Supply Chain in a Firm

No details provided, requires context for understanding of the content

Key Activity in Macro Processes Under Supply Chain Management

No details provided, requires context for understanding of the content

Order Generation & Fulfillment

Five steps in the order fulfillment process
- Receiving inventory shipments
- Inventory storage
- Order processing
- Shipping
- Returns processing

Just-in-Time Manufacturing

Also known as Toyota Production System (TPS)
Toyota car manufacturer adopted the system in the 1970s
Increases efficiency and decreases waste by receiving inventory shipments at the exact time they're needed
Reduces inventory costs
Requires producers to forecast demand accurately

Important Concepts in Supply Chain

FIFO & LIFO (First In, First Out & Last In, First Out)
- FIFO: Items are valued and sold in the order they were purchased
- LIFO: Most recent purchases are sold first, opposite of FIFO
Landed Cost
- The total cost of ownership of an item
- Includes the cost price, shipping charges, custom duties, taxes, and any other charges borne by the buyer
Back Ordering
- When a purchase order is placed for a product currently out of stock in the warehouse and already ordered by customers
- Usually adopted during times of high demand or for slow-moving products that suddenly see an increase in demand
Bill of Lading
- A shipping document showing the type of goods, their quantity, and the destination address
- Required for land, sea, or air transport
- Acts as a legal receipt of payment and is signed by the seller/shipper, carrier, and buyer/receiver
Cross Docking
- Goods received from vendors are shipped out to customers with minimal storage time
- Allows faster delivery and reduced inventory costs

Different Incoterms in Supply Chain

Set of internationally recognized rules defining responsibilities of sellers and buyers in export transactions

INCOterms

EXW (Ex Works)
- Seller fulfills its obligation when goods are ready for pickup by the buyer
FCA (Free Carrier)
- Seller delivers goods to the carrier or person identified by the buyer on the seller’s premises
CPT (Carriage Paid To)
- Seller delivers goods to the carrier at an agreed-upon location and pays for transport costs
CIP (Carriage and Insurance Paid To)
- Seller pays for insurance to protect from buyer’s risk of loss or damage during transit (minimum coverage)
DAT (Delivered At Terminal)
- Seller delivers goods to the buyer at an identified terminal and unloads them
DAP (Delivered at Place)
- Seller delivers and unloads goods to the buyer’s disposal at a named destination
DDP (Delivered Duty Paid)
- Seller transports goods to a destination, clears them for import, and pays any duties
FAS (Free Alongside Ship)
- No details provided, requires context for understanding of the content

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Description

Explore the fundamental concepts of supply chain management, including its network of relationships, key activities, and order fulfillment processes. This quiz delves into aspects like Just-in-Time Manufacturing and the significance of efficiency in the industry. Test your knowledge on how companies manage resources to deliver products effectively.