Supply Chain Management Quiz

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.

Go to Purchase Module: Find the Related RFQ (P00019). Confirm the order (manual confirmation required). Receive the products.

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.

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!