Supply Chain Management Overview
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Questions and Answers

What are the key steps in the order fulfillment process?

  • Shipping, Inventory storage, Returns processing, Order generation
  • Order processing, Receiving inventory shipments, Inventory storage, Inventory tracking
  • Inventory storage, Order processing, Receiving inventory shipments, Returns management
  • Receiving inventory shipments, Order processing, Shipping, Returns processing (correct)
  • What does FIFO stand for in inventory management?

  • First inside, first out
  • Final in, first out
  • First in, first out (correct)
  • Fast in, fast out
  • Which statement is true regarding Just-in-time manufacturing?

  • It focuses on storing large amounts of inventory.
  • It was developed by Ford in the 1950s.
  • It leads to increased inventory costs for producers.
  • It was adopted by Toyota in the 1970s. (correct)
  • What is the primary goal of back ordering?

    <p>To place orders for temporarily out-of-stock items</p> Signup and view all the answers

    What does LIFO stand for in inventory management?

    <p>Last in, first out</p> Signup and view all the answers

    Which of the following is included in the landed cost of an item?

    <p>Cost price, shipping charges, custom duties, and taxes</p> Signup and view all the answers

    Which of the following best describes the concept of scope in supply chain management?

    <p>A network of companies and suppliers focused on product distribution</p> Signup and view all the answers

    What is one of the main requirements for Just-in-time manufacturing?

    <p>Accurate demand forecasting</p> Signup and view all the answers

    What is the primary function of a Bill of Lading?

    <p>To show the type, quantity of goods, and destination address</p> Signup and view all the answers

    In which Incoterm does the seller fulfill their obligation by making goods ready for pickup at their premises?

    <p>EXW</p> Signup and view all the answers

    Which Incoterm requires the seller to pay for insurance during the transport of goods?

    <p>CIP</p> Signup and view all the answers

    What additional responsibility does DAP impose on the seller compared to DAT?

    <p>The seller must deliver and unload goods at a designated location</p> Signup and view all the answers

    What does the Incoterm DDP entail for the seller?

    <p>The seller must transport and clear goods for import duties</p> Signup and view all the answers

    Which method allows a business to ship goods with minimal to no storage time?

    <p>Cross docking</p> Signup and view all the answers

    In the FCA Incoterm, who is responsible for the goods once the seller delivers them to the carrier?

    <p>The buyer assumes responsibility at that point</p> Signup and view all the answers

    What is the implication of the CPT Incoterm for a seller?

    <p>The seller is responsible for costs until the goods reach the agreed location</p> Signup and view all the answers

    Study Notes

    Supply Chain Management

    • A network connecting a company with its suppliers to produce and distribute a specific product to the final buyer
    • Involves numerous activities, individuals, entities, information, and resources

    Work-Flow of Supply Chain at TSM

    • Includes processes like procurement, production, warehousing, and distribution

    Supply Chain Processes

    • Focuses on activities like planning, sourcing, making, delivering, and returning

    Scope of Supply Chain in a Firm

    • Covers the entire production process from raw material procurement to final customer delivery

    Key Activities in Macro Processes Under Supply Chain Management

    • Includes order generation, order fulfillment, inventory management, transportation, and customer service

    Order Generation & Fulfillment

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

    Important Concepts in Supply Chain

    • Just-in-time (JIT) Manufacturing: Increases efficiency and reduces waste by receiving materials only when needed
      • Also known as the Toyota Production System (TPS)
      • Requires accurate demand forecasting
    • FIFO (First In, First Out): Valuing and selling items in the order they were purchased
    • LIFO (Last In, First Out): Selling the most recent purchases first
    • Landed Cost: Total cost of ownership including purchase price, shipping, customs, taxes, and other charges
    • Back Ordering: Placing an order for a product temporarily out of stock, typically during high demand
    • Bill of Lading: Shipping document detailing goods, quantity, and destination address
      • Serves as a receipt of payment and is signed by the seller, carrier, and buyer
    • Cross Docking: Shipping goods directly from vendors to customers with minimal storage time

    Different Incoterms in Supply Chain

    • Incoterms are internationally recognized rules defining responsibilities in export transactions
    • EXW (Ex Works): Seller fulfills obligation by placing goods on their premises ready for buyer pickup
    • FCA (Free Carrier): Seller delivers goods to the carrier identified by the buyer at the seller’s premises
    • CPT (Carriage Paid To): Seller pays for transport costs to an agreed upon location
    • CIP (Carriage and Insurance Paid To): Seller pays for minimum insurance to cover buyer’s risk during transit
    • DAT (Delivered At Terminal): Seller delivers and unloads goods at a specified terminal
    • DAP (Delivered At Place): Seller delivers and unloads goods at the buyer’s named destination
    • DDP (Delivered Duty Paid): Seller delivers goods to a destination, clears import, and pays duties/tariffs
    • FAS (Free Alongside Ship): Seller delivers goods alongside the nominated ship at the port of loading

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    Related Documents

    Supply Chain Management PDF

    Description

    Explore the essential concepts and processes involved in Supply Chain Management. This quiz highlights the workflow at TSM, key supply chain activities, and the overall scope within a firm. Test your understanding of procurement, production, warehousing, and order fulfillment.

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