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?

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

What does LIFO stand for in inventory management?

Last in, first out Signup and view all the answers

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

Cost price, shipping charges, custom duties, and taxes Signup and view all the answers

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

A network of companies and suppliers focused on product distribution Signup and view all the answers

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

Accurate demand forecasting Signup and view all the answers

What is the primary function of a Bill of Lading?

To show the type, quantity of goods, and destination address Signup and view all the answers

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

EXW Signup and view all the answers

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

CIP Signup and view all the answers

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

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

What does the Incoterm DDP entail for the seller?

The seller must transport and clear goods for import duties Signup and view all the answers

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

Cross docking Signup and view all the answers

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

The buyer assumes responsibility at that point Signup and view all the answers

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

The seller is responsible for costs until the goods reach the agreed location 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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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.