Podcast
Questions and Answers
What does the term 'Just-in-time manufacturing' refer to in supply chain management?
What are the steps involved in the order fulfillment process?
Which method is used for tracking costs where the oldest inventory items are sold first?
What does 'landed cost' encompass in supply chain management?
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What is back ordering typically used for?
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Which of the following is NOT a key activity in the macro process of supply chain management?
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Which system did Toyota adopt in the 1970s to improve supply chain efficiency?
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What challenge does the Just-in-Time manufacturing system pose to producers?
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What does a Bill of Lading primarily serve as in a shipment?
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Which Incoterm indicates that the seller must deliver goods to a carrier as designated by the buyer?
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In which scenario does the seller bear the responsibility for insurance during transit?
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What does DDP stand for in Incoterms?
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Which term indicates that the seller is only responsible for placing goods at their premises for the buyer?
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Which Incoterm requires the seller to unload goods at an identified terminal for the buyer?
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What is a primary characteristic of Cross Docking?
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Which of the following terms requires the seller to pay for transportation costs to an agreed location?
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What is the primary advantage of Just-in-time manufacturing?
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Which process involves managing the flow of goods after an order has been placed?
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What does FIFO stand for in supply chain management?
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What is a major consideration when implementing a back ordering strategy?
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What does the term 'landed cost' refer to in supply chain management?
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Which method of inventory cost tracking indicates that the most recently purchased items are sold first?
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Which aspect of supply chain management would most directly impact customer service levels?
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What is a crucial requirement for producers in a Just-in-Time manufacturing approach?
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What does the acronym DAP stand for in Incoterms?
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Which Incoterm indicates that the seller must pay for both transportation and insurance during transit?
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What is the primary function of a Bill of Lading?
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In which scenario does the seller have the least obligation in terms of responsibility for goods?
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Which Incoterm includes the responsibility of the seller to cover import duties?
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Which of the following best defines 'Cross Docking' in logistics?
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What is a key feature of the Incoterm FAS?
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The term 'CPT' in Incoterms primarily indicates what obligation for the seller?
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Study Notes
Supply Chain Management
- A network connecting a company with its suppliers to produce and distribute a product to the final buyer.
- Includes activities, people, entities, information, and resources.
Workflow of Supply Chain at TSM
- A diagram showcasing different stages of supply chain management.
Supply Chain Processes
- Various processes involved in the supply chain.
Scope of Supply Chain in a Firm
- The scope and impact of supply chain management within a firm.
Key Activity in Macro-Process under Supply Chain Management
- A breakdown of key activities within the supply chain.
Order Generation and Fulfillment
- Five steps in the order fulfillment process:
- Receiving inventory shipments
- Inventory storage
- Order processing
- Shipping
- Returns processing
Important Concepts in Supply Chain
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Just-in-Time (JIT) Manufacturing: Also known as the Toyota Production System (TPS), implemented by Toyota in the 1970s.
- Increases efficiency and reduces waste.
- Requires producers to forecast demand accurately.
- 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, opposite of FIFO.
- Landed Cost: Total cost of ownership for an item, including the cost price, shipping charges, customs duties, taxes, and other expenses.
- Back Ordering: Placing an order for a product that's temporarily out of stock, typically used during high demand or for slow-moving products experiencing a sudden spike in demand.
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Bill of Lading: A shipping document displaying goods, quantity, and destination.
- Required for land, sea, or air transportation.
- Acts as a legal receipt.
- Cross Docking: Shipping goods directly from vendors to customers with minimal storage time.
Different Incoterms in Supply Chain
- Incoterms: Internationally recognized rules defining the responsibilities of sellers and buyers in export transactions.
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EXW – Ex Works: Seller fulfills obligation by making goods ready for buyer pickup.
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FCA – Free Carrier: Seller delivers goods to the carrier, designated by buyer, on the seller's premises.
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CPT – Carriage Paid To: Seller pays transportation costs until goods reach the agreed upon location.
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CIP – Carriage and Insurance Paid To: Seller pays for insurance to protect against buyer's risks during transit.
- Seller obtains minimum coverage; buyers may purchase additional insurance.
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DAT – Delivered At Terminal: Seller delivers goods to the buyer at a specified terminal, unloading them.
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DAP – Delivered at Place: Seller delivers and unloads goods at the buyer's disposal at a named destination.
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DDP – Delivered Duty Paid: Seller transports goods to the destination, clearing them for import, including duties/tariffs.
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FAS – Free Alongside Ship: Seller fulfills obligations by placing goods alongside the ship at the named port.
Supply Chain Management
- A network connecting a company, its suppliers, and its final buyer, focusing on producing and distributing a specific product.
- Includes various activities, people, entities, information, and resources.
Work-flow of Supply Chain at TSM
- Depicts the flow of goods and information within a supply chain.
- Demonstrates the interconnectedness of different stages.
Supply Chain Processes
- Encompasses a series of interconnected activities that transform raw materials into finished goods.
- Focuses on the entire journey of a product from sourcing to delivery.
Scope of Supply Chain in a Firm
- Outlines the reach and impact of supply chain activities within a company.
- Highlights the strategic significance of supply chain management.
Key Activity in Macro Process Under Supply Chain Management
- Emphasizes the core processes and activities within a supply chain system.
- Provides a framework for understanding the different phases of supply chain operations.
Order Generation & Fulfillment
- Includes five steps: receiving inventory shipments, order processing, inventory storage, shipping, and returns processing.
- Represents the cycle of fulfilling customer orders from start to finish.
Just-in-time Manufacturing
- A production system where materials are received just before they are needed for production, minimizing inventory costs and maximizing efficiency.
- Also known as the Toyota Production System, adopted by Toyota in the 1970s.
Important Concepts in Supply Chain
-
FIFO & LIFO:
- FIFO (First-in, first-out): Items are sold in the order they were purchased.
- LIFO (Last-in, first-out): Most recent purchases are sold first.
- Landed Cost: Total cost of ownership of an item, including price, shipping charges, taxes, and fees.
- Back Ordering: Placing orders for out-of-stock products already ordered by customers, often used during high demand periods.
- Bill of Lading: A shipping document detailing goods, quantity, and destination, serving as a legal receipt of payment.
- Cross Docking: Shipping goods directly to customers with minimal storage time.
Different Incoterms in Supply Chain
-
Incoterms: Internationally recognized rules defining seller and buyer responsibilities in export transactions.
-
EXW (Ex Works): Seller fulfills obligations upon placing goods ready for buyer pick-up at the seller's premises.
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FCA (Free Carrier): Seller delivers goods to the carrier chosen by the buyer at the seller's premises.
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CPT (Carriage Paid To): Seller pays transportation costs to an agreed-upon location.
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CIP (Carriage and Insurance Paid To): Seller pays insurance for goods in transit to a specified location.
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DAT (Delivered At Terminal): Seller delivers and unloads goods at a terminal designated by the buyer.
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DAP (Delivered at Place): Seller delivers and unloads goods at the named destination, releasing them to the buyer's disposal.
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DDP (Delivered Duty Paid): Seller transports goods to a destination and clears them for import, including payment of duties and tariffs.
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FAS (Free Alongside Ship): Seller delivers goods alongside the vessel at the agreed-upon port, with the buyer responsible for further transportation.
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Description
This quiz covers the fundamentals of supply chain management, including the workflow at TSM, key processes, and important concepts like Just-in-Time (JIT) manufacturing. Test your knowledge on how supply chain activities connect companies with suppliers to meet customer demands efficiently.
