Podcast
Questions and Answers
What is the main purpose of a supply chain network?
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?
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?
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?
What does the term 'landed cost' refer to?
What is back ordering?
What is back ordering?
Which manufacturing system is associated with just-in-time manufacturing?
Which manufacturing system is associated with just-in-time manufacturing?
What is a consequence of implementing just-in-time manufacturing?
What is a consequence of implementing just-in-time manufacturing?
Which of the following statements about LIFO is true?
Which of the following statements about LIFO is true?
What is the primary purpose of a Bill of Lading?
What is the primary purpose of a Bill of Lading?
Which Incoterm indicates that the seller has fulfilled their obligation by placing goods at their premises?
Which Incoterm indicates that the seller has fulfilled their obligation by placing goods at their premises?
In which Incoterm does the seller pay for both transportation costs and insurance during transit?
In which Incoterm does the seller pay for both transportation costs and insurance during transit?
What is the key characteristic of Cross Docking?
What is the key characteristic of Cross Docking?
What does the term DDP stand for in Incoterms?
What does the term DDP stand for in Incoterms?
Which Incoterm obligates the seller to deliver goods to an identified terminal and unload them?
Which Incoterm obligates the seller to deliver goods to an identified terminal and unload them?
What responsibility does the seller have under the DAP Incoterm?
What responsibility does the seller have under the DAP Incoterm?
Which of the following is NOT a typical element included in a Bill of Lading?
Which of the following is NOT a typical element included in a Bill of Lading?
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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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