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Questions and Answers
What is the main function of supply chain management?
What is the main function of supply chain management?
Which step is NOT part of the order fulfillment process?
Which step is NOT part of the order fulfillment process?
What does FIFO stand for in inventory management?
What does FIFO stand for in inventory management?
Which statement about Just-in-time manufacturing is accurate?
Which statement about Just-in-time manufacturing is accurate?
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What does back ordering involve?
What does back ordering involve?
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How does LIFO differ from FIFO in terms of inventory sale processes?
How does LIFO differ from FIFO in terms of inventory sale processes?
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What does 'landed cost' include?
What does 'landed cost' include?
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Which of the following best describes supply chain processes?
Which of the following best describes supply chain processes?
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What is the primary function of a Bill of Lading in shipping?
What is the primary function of a Bill of Lading in shipping?
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Which Incoterm requires the seller to deliver goods at their premises for pickup by the buyer?
Which Incoterm requires the seller to deliver goods at their premises for pickup by the buyer?
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What does the CPT Incoterm indicate about shipping responsibilities?
What does the CPT Incoterm indicate about shipping responsibilities?
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In which scenario does the seller provide insurance for goods during transit?
In which scenario does the seller provide insurance for goods during transit?
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Which of the following terms obligates the seller to deliver goods to an identified terminal?
Which of the following terms obligates the seller to deliver goods to an identified terminal?
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What distinguishes DAP from DAT in Incoterms?
What distinguishes DAP from DAT in Incoterms?
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Which Incoterm requires the seller to handle import duties and tariffs?
Which Incoterm requires the seller to handle import duties and tariffs?
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Which of the following is NOT a requirement of the Bill of Lading?
Which of the following is NOT a requirement of the Bill of Lading?
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What is one of the main objectives of just-in-time manufacturing established by Toyota in the 1970s?
What is one of the main objectives of just-in-time manufacturing established by Toyota in the 1970s?
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Which of the following accurately describes the concept of back ordering?
Which of the following accurately describes the concept of back ordering?
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What is a primary difference between FIFO and LIFO methods of inventory management?
What is a primary difference between FIFO and LIFO methods of inventory management?
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Which of the following components is NOT typically included in the landed cost of an item?
Which of the following components is NOT typically included in the landed cost of an item?
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What is the primary focus of supply chain management within a firm?
What is the primary focus of supply chain management within a firm?
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What does the acronym TPS refer to in supply chain management?
What does the acronym TPS refer to in supply chain management?
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Which inventory management concept helps in tracking the cost of goods sold based on the order of purchase?
Which inventory management concept helps in tracking the cost of goods sold based on the order of purchase?
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During which scenario is back ordering typically utilized?
During which scenario is back ordering typically utilized?
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What does the term 'CIP' in Incoterms imply?
What does the term 'CIP' in Incoterms imply?
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Which Incoterm indicates that the seller must deliver goods and unload them at a specific location?
Which Incoterm indicates that the seller must deliver goods and unload them at a specific location?
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What is a key characteristic of the 'DAT' Incoterm?
What is a key characteristic of the 'DAT' Incoterm?
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In terms of export transactions, what do Incoterms define?
In terms of export transactions, what do Incoterms define?
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Which Incoterm indicates that the seller must handle all duties and tariffs for imported goods?
Which Incoterm indicates that the seller must handle all duties and tariffs for imported goods?
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What does the 'FCA' Incoterm specify about the seller's responsibility?
What does the 'FCA' Incoterm specify about the seller's responsibility?
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Which of the following accurately describes the role of a Bill of Lading?
Which of the following accurately describes the role of a Bill of Lading?
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What differentiates 'EXW' from 'FCA' in terms of seller responsibilities?
What differentiates 'EXW' from 'FCA' in terms of seller responsibilities?
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Which Incoterm places the responsibility of risk on the buyer once the goods are placed at the seller's premises?
Which Incoterm places the responsibility of risk on the buyer once the goods are placed at the seller's premises?
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What does the 'CPT' Incoterm imply about transportation costs?
What does the 'CPT' Incoterm imply about transportation costs?
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In which Incoterm does the seller assume responsibility for insurance during the transit of goods?
In which Incoterm does the seller assume responsibility for insurance during the transit of goods?
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Which Incoterm ensures that the seller delivers goods and is responsible for unloading them at a terminal?
Which Incoterm ensures that the seller delivers goods and is responsible for unloading them at a terminal?
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Which of the following best describes the DDP Incoterm?
Which of the following best describes the DDP Incoterm?
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Which Incoterm specifies that the seller delivers the goods to the carrier identified by the buyer?
Which Incoterm specifies that the seller delivers the goods to the carrier identified by the buyer?
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What type of method is cross docking in supply chain management?
What type of method is cross docking in supply chain management?
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Which Incoterm is likely to result in additional costs for the buyer due to minimal insurance coverage?
Which Incoterm is likely to result in additional costs for the buyer due to minimal insurance coverage?
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What is a significant downside of Just-in-time manufacturing?
What is a significant downside of Just-in-time manufacturing?
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Which of the following best exemplifies the concept of back ordering?
Which of the following best exemplifies the concept of back ordering?
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In which situation would FIFO be the preferred method for inventory management?
In which situation would FIFO be the preferred method for inventory management?
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What does the Landed Cost effectively calculate?
What does the Landed Cost effectively calculate?
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How does LIFO method track the cost of inventory?
How does LIFO method track the cost of inventory?
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Which of the following is a key characteristic of an effective supply chain network?
Which of the following is a key characteristic of an effective supply chain network?
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What role does inventory storage play in the order fulfillment process?
What role does inventory storage play in the order fulfillment process?
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Which statement correctly distinguishes the economic implications of FIFO from LIFO?
Which statement correctly distinguishes the economic implications of FIFO from LIFO?
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What is the primary aim of Just-in-time manufacturing in the context of supply chain management?
What is the primary aim of Just-in-time manufacturing in the context of supply chain management?
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In which scenario would back ordering typically be adopted?
In which scenario would back ordering typically be adopted?
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Which method of inventory tracking is characterized by selling the most recently purchased items first?
Which method of inventory tracking is characterized by selling the most recently purchased items first?
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What is an essential factor in the determination of landed cost?
What is an essential factor in the determination of landed cost?
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During which step of the order fulfillment process is inventory organized for dispatch?
During which step of the order fulfillment process is inventory organized for dispatch?
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How does FIFO improve inventory management outcomes?
How does FIFO improve inventory management outcomes?
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Which of the following issues could arise from poor demand forecasting in Just-in-time manufacturing?
Which of the following issues could arise from poor demand forecasting in Just-in-time manufacturing?
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What is a critical benefit of utilizing LIFO during inflationary periods?
What is a critical benefit of utilizing LIFO during inflationary periods?
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What is the role of a Bill of Lading in the context of transportation?
What is the role of a Bill of Lading in the context of transportation?
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How does the 'CIP' Incoterm enhance the responsibilities of the seller compared to 'CPT'?
How does the 'CIP' Incoterm enhance the responsibilities of the seller compared to 'CPT'?
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What distinguishes the 'DAP' Incoterm from 'DAT' in shipping terms?
What distinguishes the 'DAP' Incoterm from 'DAT' in shipping terms?
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Which of the following is true regarding the responsibilities under the EXW Incoterm?
Which of the following is true regarding the responsibilities under the EXW Incoterm?
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What does the term 'Cross Docking' imply in a supply chain context?
What does the term 'Cross Docking' imply in a supply chain context?
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When using the DDP Incoterm, what responsibility does the seller have?
When using the DDP Incoterm, what responsibility does the seller have?
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In which widely recognized Incoterm does the seller deliver goods alongside a ship?
In which widely recognized Incoterm does the seller deliver goods alongside a ship?
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What is one primary limitation of the 'CIP' Incoterm for buyers?
What is one primary limitation of the 'CIP' Incoterm for buyers?
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Study Notes
Supply Chain Management
- A network between company and its supplier to produce and distribute a specific product to the final buyer.
- Includes different activities, people, entities, information, and resources.
Work-flow of Supply Chain at TSM
- Not specified in the provided text.
Supply Chain Processes
- Not specified in the provided text.
Scope of Supply Chain in a Firm
- Not specified in the provided text.
Key Activity in Macro Process Under Supply Chain Management
- Not specified in the provided text.
Order Generation & Fulfillment
- Five steps:
- Receiving inventory shipments
- Inventory storage
- Order processing
- Shipping
- Returns processing
Important Concepts in Supply Chain
-
Just-in-time manufacturing:
- Also known as the Toyota Production System (TPS).
- Adopted by Toyota in the 1970s.
- Aims to increase efficiency and decrease waste by receiving materials just as they are needed.
- Reduces inventory costs.
- Requires producers to forecast demand accurately.
-
FIFO (First In, First Out):
- Method of cost lot tracking where items are valued and sold in the order they were purchased.
-
LIFO (Last In, First Out):
- Method of cost lot tracking where the most recent purchases are sold first.
- Works opposite to FIFO.
-
Landed Cost:
- 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:
- Practice of placing a purchase order to a supplier for a product that's temporarily out of stock in your warehouse.
- Typically adopted during times of high demand or for slow-moving products that suddenly see a spike in demand.
-
Bill of Lading:
- Shipping document showing the type of goods, their quantity, and the destination address.
- Required whenever goods are transported by land, sea, or air.
- Acts as a legal receipt of payment and must be signed by all parties involved in the shipment: the seller/shipper, the carrier, and the buyer/receiver.
-
Cross Docking:
- Method by which a business owner can ship goods received from vendors to customers with minimal storage time.
Different Incoterms in Supply Chain
-
Incoterms are a set of internationally recognized rules defining the responsibilities of sellers and buyers in export transactions.
-
EXW (Ex Works):
- Seller fulfills its obligation when it places goods on its premises, ready for the buyer to pick up.
-
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 or person identified at another agreed upon location.
- Seller pays for the costs to transport goods to the agreed upon place.
-
CIP (Carriage and Insurance Paid To):
- Expansion of CPT, where the seller agrees to pay for insurance to protect from buyer’s risk of loss or damage to goods during transit to the agreed upon place.
- Seller must obtain minimum coverage, buyers may want additional protection.
-
DAT (Delivered At Terminal):
- Seller delivers goods to the buyer at an identified terminal like a quay, warehousing, shipping yard, or a rail or air cargo terminal.
- Seller unloads goods for the buyer.
-
DAP (Delivered at Place):
- Expansion of DAT, requiring the seller to deliver and unload goods to the disposal of the buyer at a named destination.
-
DDP (Delivered Duty Paid):
- Seller must transport goods to a destination and have them cleared for import, including payment of duties or tariffs for importing or exporting products across borders.
-
FAS (Free Alongside Ship):
- Not specified in the provided text.
Supply Chain Management
- A network between a company and its suppliers to produce and distribute a specific product to the final buyer
- Involves different activities, people, entities, information, and resources
Supply Chain Processes
- Supply chain is a process that involves many steps
- Each step needs to be managed effectively to ensure that the final product reaches the customer on time and in good condition
Scope of Supply Chain in a Firm
- Supply chain is a key function of any business that manufactures or sells products
- Can be divided into different stages, each with its own set of activities
Key Activities in Macro Process Under Supply Chain Management
- Order generation and fulfillment
- Inventory management
- Procurement
- Production
- Logistics
Order Generation and Fulfillment
- Five steps in order fulfillment process:
- Receiving Inventory Shipments
- Inventory Storage
- Order Processing
- Shipping
- Returns Processing
Important Concepts in Supply Chain
- Just-in-time manufacturing
- Also known as Toyota Production System (TPS)
- Adopted by Toyota in the 1970s
- Increases efficiency and decreases waste
- Reduces inventory costs
- Requires producers to forecast demand accurately
- FIFO & LIFO
- FIFO: First in, first out, items are valued and sold in the order they were purchased
- LIFO: Last in, first out, most recent purchases are sold first
- Works opposite to FIFO
- Landed Cost: The total cost of ownership of an item, including the cost price, shipping charges, customs duties, taxes, and any other buyer charges.
- Back Ordering: A practice of placing a purchase order to a supplier for a product that's temporarily out of stock in the warehouse and already been ordered by customers.
- Adopted during times of high demand and for slow-moving products that see a spike in demand
- Bill of Lading: A shipping document showing the type of goods, their quantity, and the destination address.
- Required whenever goods are transported from one point to another
- Acts as legal receipt of payment
- Has to be signed by all parties involved: seller/shipper, carrier, and buyer/receiver
- Cross Docking: A method by which a business owner can ship goods that they have received from vendors to their customers with little to no storage time.
Different Incoterms in Supply Chain
- Incoterms are a set of internationally recognized rules that define the responsibilities of sellers and buyers in export transactions.
- EXW: Ex Works
- Seller fulfills its obligation when it places goods on the seller’s premises, ready to be picked up 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 or person identified at another agreed upon location.
- Seller must pay for the costs to transport goods to the agreed upon place.
- CIP: Carriage and insurance Paid To
- An expansion of CPT, seller agrees to pay for insurance to protect from buyer’s risk of loss or damage to goods during transit to the agreed upon place.
- Seller must obtain minimum coverage, buyers may want to purchase additional protection.
- DAT: Delivered At Terminal
- Seller is obligated to deliver goods to the buyer at an identified terminal.
- May include a quay, warehousing, shipping yard or a rail or air cargo terminal, and unload such goods for the buyer.
- DAP: Delivered at Place
- An expansion of DAT by requiring the seller to deliver and unload goods to the disposal of the buyer at a named destination.
- DDP: Delivered Duty Paid
- Seller must transport goods to a destination and have them cleared for import, including the payment of duties or tariffs for importing or exporting products across borders.
- FAS: Free Alongside Ship.
Supply Chain Management
- A chain connecting a company and its suppliers that produces and distributes products to final buyers.
- Includes activities, people, entities, resources and information.
Supply Chain Processes
- Activities that ensure products are available to customers in the right place at the right time.
Scope of Supply Chain in a Firm
- Covers all the activities that involve the flow of goods and services.
Key Activities in Supply Chain Management
- Procurement: Selecting and acquiring raw materials and finished goods.
- Production: Transforming raw materials into finished goods.
- Distribution: Moving finished goods from the factory to the customer.
- Inventory management: Managing the amount of inventory on hand.
- Customer service: Resolving customer issues and providing support.
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 Management
- Just-in-Time (JIT): A manufacturing system where materials are delivered just in time for production.
- Reduces inventory costs.
- Requires producers to forecast demand accurately.
- FIFO (First-In, First-Out) & LIFO (Last-In, First-Out): Cost lot tracking methods for valuing and selling items in the order they were purchased.
- Landed Cost: The total cost of ownership of an item, including the cost price, shipping charges, customs duties, taxes, and any other charges borne by the buyer.
- Back Ordering: Placing an order for a product that is temporarily out of stock, usually during times of high demand or for slow-moving products.
- Bill of Lading: A document that shows the type of goods, their quantity, and the destination address. It serves as a legal receipt of payment.
- Cross Docking: Shipping goods directly from vendors to customers with minimal storage time.
Incoterms
- Internationally recognized rules defining the responsibilities of sellers and buyers in export transactions.
Different Incoterms
- EXW (Ex Works): Seller fulfills its obligation when goods are ready for pickup at the seller's premise.
- 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 pays for transport costs to an agreed upon location.
- CIP (Carriage and Insurance Paid To): Seller pays for insurance to protect the buyer from loss or damage 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 disposal at a specified destination.
- DDP (Delivered Duty Paid): Seller transports goods to a destination and clears them for import, including payment of duties and tariffs.
- FAS (Free Alongside Ship): Seller fulfills obligation when goods are placed at the buyer's disposal alongside the ship.
Supply Chain Management
- A network connecting a company and its supplier 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 information provided regarding the work-flow of supply chain at TSM.)
Supply Chain Processes
- (No information provided about the processes.)
Scope of Supply Chain in a Firm
- (No information provided about the scope.)
Key Activity in Macro Process Under Supply Chain Management
- (No information provided about the key activities.)
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 manufacturing:
- Also known as the Toyota Production System (TPS)
- Adopted by Toyota in the 1970s
- Increases efficiency and decreases waste by receiving goods just in time for their use
- Reduces inventory costs
- Requires producers to forecast demand accurately
-
FIFO (First In, First Out):
- A method of cost lot tracking where items are valued and sold in the order they were purchased.
-
LIFO (Last In, First Out):
- A method of cost lot tracking where the most recent purchases are sold first.
- Works opposite to 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:
- Placing a purchase order to a supplier for a product that's temporarily out of stock in your warehouse and has already been ordered by customers.
- Usually adopted during times of high demand and for slow-moving products that suddenly see a spike in demand.
-
Bill of Lading:
- A shipping document showing the type of goods, their quantity, and the destination address.
- Required whenever goods are transported from one point to another, by land, sea, or air.
- Acts as a legal receipt of payment and is signed by the seller/shipper, the carrier, and the buyer/receiver.
-
Cross docking:
- A method by which a business owner can ship goods they have received from vendors to their customers with little to no storage time.
Different Incoterms in Supply Chain
- Incoterms are internationally recognized rules that define the responsibilities of sellers and buyers in export transactions.
Incoterms Definitions
-
EXW (Ex Works):
- The seller fulfills its obligation when it places goods on the seller's premises, ready to be picked up by the buyer.
-
FCA (Free Carrier):
- The seller delivers goods to the carrier or person identified by the buyer on the seller's premises.
-
CPT (Carriage Paid To):
- The seller delivers goods to the carrier or person identified at another agreed upon location.
- The seller pays for the costs to transport goods to the agreed upon place.
-
CIP (Carriage and Insurance Paid To):
- An expansion of CPT.
- The seller agrees to pay for insurance to protect against the buyer's risk of loss or damage to goods during transit to the agreed upon place.
- Seller must obtain minimum coverage, so buyers may want to purchase additional protection.
-
DAT (Delivered At Terminal):
- The seller delivers goods to the buyer at an identified terminal (quay, warehousing, shipping yard, rail, or air cargo terminal) and unloads them for the buyer.
-
DAP (Delivered at Place):
- An expansion of DAT, requiring the seller to deliver and unload goods to the disposal of the buyer at a named destination.
-
DDP (Delivered Duty Paid):
- The seller must transport goods to a destination and have them cleared for import, including payment of duties or tariffs for importing or exporting products across borders.
-
FAS (Free Alongside Ship):
- (No information provided.)
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Description
Explore the fundamentals of supply chain management, including the flow of goods from suppliers to consumers and key processes involved. This quiz covers essential concepts such as order fulfillment and just-in-time manufacturing.
