Supply Chain Management Quiz

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Questions and Answers

What is the primary purpose of combining several rules into one route in a supply chain?

To minimize the number of procurement orders

To streamline product movement from A to Z (correct)

To create more exceptions for human checks

To segregate typical paths within the warehouse

What triggers the system to search for rules in order to fulfill a procurement order?

The routes defined in sales orders or product categories (correct)

The availability of warehouses

The nature of the product

The urgency of the order

What is the first step to activate multi-step routes for a specific warehouse?

Access the main dashboard and select the warehouse

Choose a warehouse setup option from the inventory menu

Press the update button on the settings screen

Go to Inventory, then Configuration, and select Warehouses (correct)

What is the role of the sequence of routes when multiple routes are available?

To choose between conflicting routes Signup and view all the answers

Which of the following is used to handle exceptions that require human checks?

Specific Routes Signup and view all the answers

At which level can routes be applied?

Warehouse, product categories, and products Signup and view all the answers

What is the primary function of dropshipping in sales processing?

Transfer products directly from supplier to customer Signup and view all the answers

What must be done to implement dropshipping in the system?

Configure settings related to purchases Signup and view all the answers

Which of the following is a crucial step when creating a new sales order for dropshipping?

Add the route column if it is missing Signup and view all the answers

What is the first step to access the routes list?

Inventory >> Configuration >> Routes Signup and view all the answers

What is the first step in configuring scrap products?

Access the adjustment settings for operations Signup and view all the answers

To successfully process a drop shipment, what operation type is created?

Direct shipment operation Signup and view all the answers

In a multi-step route configuration, how many steps can be set for inbound and outbound flows?

1 to 3 steps are permitted Signup and view all the answers

What view can be used to visually track conflicting routes?

Diagram view Signup and view all the answers

Which sequence of actions is involved in implementing manufacturing routes?

Access Configuration > Choose Warehouse > Create New Route Signup and view all the answers

Which of the following is NOT a result of applying dropshipping?

Increased inventory levels at the company Signup and view all the answers

Which route rule should be selected for managing quality control in a 3-step route?

Push-Pull rule Signup and view all the answers

Where do you go to configure inbound and outbound flows for a specific warehouse?

Inventory >> Configuration >> Warehouses Signup and view all the answers

Which of the following best describes the order of application for routes?

Routes are applied in the order they appear in the list Signup and view all the answers

To create a Purchase Order in connection with routes, which module should be accessed?

Purchase Signup and view all the answers

What is the purpose of selecting three-step rules in route configuration?

To allow for more complex inventory management Signup and view all the answers

What happens if the stock for a product is unavailable?

Another rule is triggered to source products from available stock. Signup and view all the answers

Which actions should be activated for the product 'Large Desk'?

Both 'Buy' and 'Make to Stock' routes should be activated. Signup and view all the answers

What should you do if you want to create a new quotation for the 'Large Desk'?

Create a quotation with a quantity larger than stock. Signup and view all the answers

After confirming an order, which icon should be pressed to initiate delivery processes?

Delivery icon. Signup and view all the answers

What occurs after pressing the delivery icon if stock is insufficient?

A replenishment order is automatically created. Signup and view all the answers

What is indicated when a message shows 'Waiting for another operation'?

Another step is needed before processing the order. Signup and view all the answers

What automatically gets created in the Purchase module after a sales order is confirmed?

Request for Quotation (RFQ). Signup and view all the answers

What does the term 'Customs and Duties' refer to?

Import duties, tariffs, and taxes imposed by a destination country. Signup and view all the answers

What does the term 'MTO route' refer to in the replenishment process?

Make to Order route. Signup and view all the answers

Which factor can significantly influence the final price of goods purchased from a foreign supplier?

Fluctuations in exchange rates. Signup and view all the answers

What do brokerage fees typically cover?

Assistance in clearing goods through customs. Signup and view all the answers

Which of the following is NOT typically associated with shipping costs?

Import taxes imposed by the destination country. Signup and view all the answers

What are handling fees primarily related to?

Loading, unloading, or storage of goods during transportation. Signup and view all the answers

What is the first account that should be created in the chart of accounts if not available?

Stock Valuation Signup and view all the answers

Which account type is used for Stock Valuation OUT?

Current Assets Signup and view all the answers

What is the purpose of identifying whether a company uses the Anglo-Saxon or continental method?

To know the accounting practices in use Signup and view all the answers

What constitutes the landed cost of a product?

Product cost, shipping, and delivery expenses Signup and view all the answers

What is the required action if accounts are not available in the accounting module?

Create accounts in the chart of accounts Signup and view all the answers

Which option is true about the inventory valuation journal?

It is always referred to as the inventory valuation journal Signup and view all the answers

Which of the following indicates that reconciliation is required for an account?

Stock Valuation IN Signup and view all the answers

Study Notes

Course Information

Course Title: Enterprise Resource Planning Systems
Course Code: 0405452
Academic Year: Fall 2024-2025
Instructor: Dr. Ali Cheaitou
Developed in collaboration with Odoo

Chapter 6 - Part 2: Supply Chain, Inventory, & Warehousing Management

Focuses on supply chain, inventory, and warehousing management
This is part 2 of chapter 6

Advanced Inventory Management

This topic focuses on advanced inventory management

Routes

Two strategies within a single object, define paths for product movement.
Procurement (order) or stock move triggers these paths by another entity.
Pull Rules:
- Translate the backward mechanism of the procurement decision.
  - How procurement decisions (orders) should be fulfilled at specific locations.
  - Determines if a procurement is Make-To-Order (MTO) or Make-To-Stock (MTS).
Push Rules:
- Translate the forward mechanism of the procurement decision
- Trigger the movement of products to specific locations.
- Automatically move products to a new location.
Combining multiple rules creates a route to follow a specific path from A to Z in supply chain.

Routes: Order of Priority

To fulfill a procurement order or a stock move, the system searches rules for routes defined in:
Sales Order Lines: Used for case-by-case exceptions requiring a human check.
Product: Used to handle general exceptions.
Product Category: Used for typical paths in warehouse, such as inbound and outbound.
Warehouse: Used to follow the typical flows

Activate Multi-Step Routes

Access routes specific to a warehouse by pressing "Set Warehouse Routes" in Settings.
Or go to Inventory > Configuration > Warehouses > select the warehouse > Choose the "Routes" icon

Conflicting Routes

Sequence of routes decides which route is applied first for conflicting routes.
The first route in the list is applied first.

Conflicting routes: avoid them

Use a Diagram view to track conflicting rules by representing routes.
The route is simple, from the vendor to stock location using Purchase(Receive) then from stock location to customer using Sales (Deliver).

Inbound and Outbound Flows

Warehouse level configuration for inbound and outbound flows (1 to 3 steps)
Options for incoming and outgoing shipments (1-3 steps)

Buy to Resupply

Configured at the warehouse level.
Applied to the product or product category level to specify external supplier delivery to the warehouse.
Ensure supplier and price are set per product.

Manufacture to Resupply

Requires a manufacturing module.
Configured at warehouse level.
Applicable to product or product category to specify if manufacturing orders are triggered for the warehouse.
Bill of Materials should be configured for finished or semi-finished products

Manufacture... in multiple steps (Product Manufacturing)

Warehouse-level configuration.
Applied at the product or category level.
Three options: 1.Manufacture (one step) 2.Pick components and then manufacture (two steps). 3.Pick components, manufacture and then store (three steps)

Resupply from other warehouses

Warehouse-level configuration.
Applied at the product or product category level.
Creates a two-step route from source warehouse (W2) to the destination warehouse (W1).
Additional warehouse (W2) is needed for this workflow.

Dropshipping

Configured in settings (Purchase > Configuration > Settings).
To be applied at the sales order line level.
Creates a specific operation type to move the product from supplier to the customer without moving goods to the company's stock.
- Create a new Sales order in the Sales module
- Add product (Add the Route column if it does not exist)
- and select "Dropship."

Scrap Products

Configured in the settings (Inventory > Operations > Adjustments > Scrap)..
- Specify the product and scraped quantity
- Validate

Creating a new Route

A new route can be created.

Routes: Applicable on

Warehouse, Product Categories, Products, Sales Order Lines
Choose the level the route will be applied.

Routes: Actions

Actions taken to handle procurement or a forward move.
Pull from
Push to
Push & Pull
Buy
Manufacture

Routes: Operation Type

Operation type chosen to package the move generated by the route.

Routes: Source and Destination

Destination location (pull/procurement location)
Source location (push/previous move location)

Routes: Supply Method

Take From Stock - Products will be taken from the available stock of the source location
Trigger Another Rule- The system will try to find a stock rule to bring the products into the source location. Ignoring available stock.
Take From Stock, if Unavailable, Trigger Another Rule- Attempt availability of products in the source location; if unavailable, search for a rule to bring the products to that location

Routes: Stock -> Customer with Automatic Replenishment

Take From Stock: Products will be taken from stock.
Trigger Another Rule: System searches a stock rule to bring products to the source location.
Take From Stock, if unavailable, Trigger Another Rule: If product not available, system searches for a rule to get products to the source location

Activate both the "Buy" and "Make to Stock" routes for the product "Large Desk".

Create a new Quotation in Sales ("Large Desk") for a customer with more quantities than the existing stock.

Press on Confirm"

Press on the Delivery icon. You can also press on "Purchase" icon.

The products (81) have been received in WH

Go to Purchase Module: The new RFQ has been added for the "Large Desk".

Go to Purchase Module: The quantity in the Purchase Order is equal to the sales order.

Click on "Receive Products" and then "Validate" to receive the products.

The products (81) have been received in our WH.

Go to the Sales Module again to check the Sales order that triggered the RFQ. Then, go to the Delivery icon within the Sales order.

Automatic Reordering

Choose Product, Minimum Quantity for Reorder point, Maximum Quantity for Target level
Product must have a Vendor defined.
Press "Order Once" to trigger reordering policy.
This creates an RFQ.

To activate generating the orders automatically through the Scheduler: Operations → Run Scheduler.

Now, in Sales, create a sales order with 250 units ('Large Desk'). A new RFQ will be generated since the max quantity is set to 100.

Go to Purchase and confirm the Purchase Order and receive the goods.
Check the inventory level.

Inventory Reports

Stock Report: Check on hand, free to use, unit cost, total value, outgoing and incoming
Move History Report: Check movement history of a product
Locations Report: Check the product location in the warehouse/inventory
Forecasted Report: Check on-hand, incoming, and outgoing forecasted quantity

Best Practices

Create a to-do list and track operations through the dashboard.
Use default operations first.
Add extra operation type for operations not reflected in standard configuration
Decide when to start tracking products
Set up alert mechanisms using the dashboard
Order of importance: Product Category > Stock Location > FIFO (default)
Generic strategy at product category or main location level
Case by case strategy at sub-location or for specific product
Use planned transfers as much as possible
Negative quantities are not a negative thing! BUT track them in the inventory report and correct via inventory adjustments.
Balance complexity and value: Don't over-complicate operations; go through manual operations, routes, then reordering rules.

Inventory Valuation

Focus on Inventory Valuation
Costing Methods:
- Standard Price
- AVCO
- FIFO
Inventory Valuation: Standard, Automated

Landed Cost

Landed cost is the total cost of the product when it arrives at its destination.
Includes purchasing, shipping, and delivering expenses.
- Product Cost: Base cost of the product
- Shipping Costs: Expenses for transporting the product
- Customs and Duties: Imposed taxes and fees by the destination country
- Insurance: Coverage during transit
- Currency Conversion: Fluctuations in exchange rates
- Handling Fees: For loading, unloading, or storage
- Brokerage Fees: Paid to customs agents for clearing the goods

Enable, Create, Receipt, Valuation

Odoo features for enabling, creating, creating receipts for, and estimating inventory value

Define your product category

Define the category for your product.

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Description

Test your knowledge on supply chain management concepts such as route optimization, rules for procurement orders, and exception handling. This quiz covers key principles essential for effective supply chain operations. Dive in to explore the complexities of managing routes and their sequences!