Supply Chain Management

Supply Chain Management Interview questions. We have listed some important interview questions on Supply Chain Management to help you for your next job interview in SCM.

Q.1 What is the objective of a supply chain?

To improve the efficiency and responsiveness across the whole supply chain and also deliver improved value to the customers

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Q.2 What does quantity flexibility coordination contract refers to?

The customer gives a preliminary forecast and then it can give fixed order in an interval around the forecast.

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Q.3 What optimization does modeling approach, focuses on?

1. Fine-tuning the existing decision rules.
2. Reducing time delays at and within each stage of the supply chain.
3. Integrating the flow of information.

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Q.4 What are the objectives of MRP?

1. Ensure materials are available for production and products are available for delivery to customers.
2. Maintain the lowest possible material and product levels in store
3. Plan manufacturing activities, delivery schedules and purchasing activities.

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Q.5 Which process of supply chain process, JIT belongs to?

Manufacturing flow management

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Q.6 What is the objective of a supply chain?

To improve the efficiency and responsiveness across the whole supply chain and also deliver improved value to the customers

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Q.7 What does quantity flexibility coordination contract refers to?

The customer gives a preliminary forecast and then it can give fixed order in an interval around the forecast.

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Q.8 What optimization does modeling approach, focuses on?

1. Fine-tuning the existing decision rules.
2. Reducing time delays at and within each stage of the supply chain.
3. Integrating the flow of information.

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Q.9 What are the objectives of MRP?

1. Ensure materials are available for production and products are available for delivery to customers.
2. Maintain the lowest possible material and product levels in store
3. Plan manufacturing activities, delivery schedules and purchasing activities.

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Q.10 Which process of supply chain process, JIT belongs to?

Manufacturing flow management

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Q.11 What will you do if you run out of stock?

The interviewer is expecting a methodical, strategic plan as running out of stock could cause quite detrimental delays to service/production. 1. You are required to detect the stock situation . 2. Check if there are any outstanding orders or deliveries. 3. Rectify the situation - Identify source the stock/cover any shortages in a quick time. Now what is important is to prevent the issue happening again. Dealing with the issue quickly is all well and good, but being able to deal with it and then prevent it from happening again is an attribute which companies would look out for in applicants applying to a supply chain role.

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Q.12 What according to you are the key skills to be a successful supply chain manager?

I believe that in order to become successful supply chain manager one should have a strong customer service background as well as the ability to negotiate well. Also as a managerial profile strong levels of analysis and problem solving skills are also key in to perform efficiently. To support your answer give relevant and recent examples of when you have demonstrated the use of the skills identified as key, by using the STAR technique as a guideline.

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Q.13 What is the primary objective of supply chain management?

On the primary purpose of supply chain management is to ensure that the inventory is readily available in customer facing positions to fulfil demand. This will help the company to reduce waste, drive out costs, and achieve efficiencies in the supply chain.

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Q.14 How do you differentiate between Logistics and Supply Chain Management

Very often logistics and supply chain management are used interchangeably, but they primarily refer to two aspects of the process. Logistics refers to what happens within one company, including the purchase and delivery of raw materials, packaging, shipment, and transportation of goods to distributors. On the other hand supply chain management refers to a larger network of outside organizations that work together to deliver products to customers, including vendors, transportation providers, call centres, warehouse providers, etc.

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Q.15 What do you understand by SKU in supply chain?

In inventory management, a stock-keeping unit or SKU is defined as a specific item stored to a specific location. SKU is primarily intended as the most disaggregated level when dealing with inventory. Such that all the units stored are the same SKU are supposed to be indistinguishable.

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Q.16 Define Supply Chain Management.

Supply chain management, or SCM, is described as the continuous monitoring of all aspects of the supply chain (including raw materials, data, and finances) from beginning to end. Supply chain management aims to integrate and stabilise the flow of activities from the manufacture of commodities to their eventual distribution as part of the process of developing and satisfying demands. This puts supply chain management professionals in direct contact with everyone in the supply chain, from suppliers to customers.

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Q.17 What is the Ultimate Objective of Supply Chain Management?

The goal of supply chain management is to improve the efficiency of an organization's operations and increase production. Companies strive to meet people's needs by delivering the proper goods to them on time while making a profit. While streamlining the entire process, supply chain managers guarantee that waste is reduced and that everyone's time is used productively, allowing the company to save money. All of these minor objectives contribute to the ultimate goal of achieving efficiency.

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Q.18 Define Affreightment.

Freight is the source of the term affreightment. It is the sum of money paid to a charterer in exchange for the use of his vessel to transport commodities.

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Q.19 What Does Supply Chain Management Entail?

Without collaborative and integrative approaches with channel partners, supply chain management is incomplete. A supply chain's performance is dependent on the participation of suppliers, retailers, wholesalers, distributors, and customers. Supply chain managers must work with suppliers, maintain track of demand, integrate wholesalers and distributors' services, and communicate efficiently with everyone involved in the process, including customers.

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Q.20 With the supply chain in mind, how do you define SKU?

A stock-keeping unit is referred to as an SKU. It has something to do with inventory management. SKU stands for Stock Keeping Unit, and it refers to a specific item stored in a certain location in the inventory.

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Q.21 What do you mean when you say "Compliance labels"?

A compliance label for a product is created with proper regard for the industry's standardised standards. It is vital in import/export, because government agencies are in charge of defining and checking these label standards for exported or imported products.

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Q.22 What is Logistics' Role in Supply Chain Management?

The term "logistics" refers to the complete process of tracking the transportation of products and services from one location to their final destination. The term logistics was used to describe the transportation of materiel to ground-based military forces. However, in today's world, logistics is more than just a term. It can quickly change shape to match the needs of an organisation. It entails more than simply providing finished goods to customers. Warehousing, managing outgoing and inbound transportation, planning to fulfill demand, and handling mats are all responsibilities of the logistics department.

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Q.23 What role does logistics play in business?

Since the entire objective of production is nullified if consumers do not receive their intended goods, logistics is critical. Logistics may appear to be a little activity that occurs at the conclusion of the production process, but it bears the brunt of the workload. When the goods are made and ready to be sent, logistics isn't a consideration. It is a continuous process that occurs throughout the manufacturing process. In reality, logistics begins even before the production process begins. Logistics plays a role in the purchase of raw resources.

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Q.24 What's the difference between logistics and supply chain management?

Logistics and supply chain management are two distinct processes. Logistics is a small part of supply chain management, which is focused on the overall picture. Logistics is the process of creating items in one organisation and distributing them to customers who want them. Supply chain management, on the other hand, is a collection of businesses that work together to distribute items in large numbers to their customers. It is, in this sense, a large-scale activity with many moving elements.

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Q.25 Can you explain the term "less than truckload" to me?

The term "less than truckload" refers to a contract between a transport owner and a shipper in which the owner is not paid in full for the vehicle. The cost of shipping is calculated based on the weight of the items and the distance they will travel.

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Q.26 Define a shipping notice in advance.

Prior to delivery, it is sent to the consumer. It contains all of the details concerning their product's shipment. It contains information about the shipment's carrier, when the package is expected, and so on.

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Q.27 What does anti-dumping duty mean to you?

It is an import tariff levied when the charges of imported items are less than the determined price in the exporter's country's market. This causes deficits in the importing country's domestic market.

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Q.28 What is the definition of dead weight tonnage?

Dead weight tonnage refers to the difference between a ship's laden and unladen weight. This means that, except for the ship's weight, the weight of all goods on board is taken into account.

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Q.29 What do you mean when you say "Blank way bill"?

Blanket Way Bills are Way Bills that contain two or more consignments of freight.

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Q.30 What are the main challenges that transportation faces when it comes to warehousing?

The process of warehousing is not as straightforward as we may believe. It has concerns with tracking and communication. The security of a warehouse is a crucial deciding element when it comes to keeping products. Any delays are factored in, and the expenditures incurred are occasionally a source of concern.

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Q.31 Explain the importance of Supply Chain Management.

Boost Customer Service Reduce Operating Costs Improve Financial Position Ensure Human Survival Protect Cultural Freedom and Development

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Q.32 What are the functions of Supply Chain Management?

The functions of supply chain management include the following: Purchasing Operations Logistics Resource Management Information Workflow

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Q.33 What is Outsourcing in supply chain management?

When it comes to supply chain management, outsourcing is the practise of a company outsourcing its entire supply chain management in order to reduce overall costs, focus on core competencies, effectively meet customer demands, and achieve greater flexibility in maintaining and operating its supply chain.

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Q.34 Define Warehousing management.

A warehouse management system is a piece of software that helps to support and improve warehouse and distribution centre operations.

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Q.35 Explain Performance measurement.

Performance measurement is the process of gathering, evaluating, and/or reporting data about an individual, group, organisation, system, or component's performance. Performance measurement definitions are frequently based on an assumption about why the performance is being measured.

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Q.36 What is Knowledge-based view (KBV)?

The knowledge-based view of the firm (KBV) is a management concept of organisational learning that provides organisations with competitive advantage strategies. This is due to the fact that knowledge-based resources are usually marked by transmission, imitation, and social complications.

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Q.37 Define Strategic choice theory (SCT).

Strategic Choice Theory is a concept in organisational theory that describes the function of leaders or leadership groups in influencing an organisation by making decisions in a dynamic political process. Prior to this notion, it was widely assumed that organisations were built around operational needs based on the external environment. Strategic choice theory offered an alternative, emphasising the agency of individuals and groups inside organisations to make decisions, sometimes for their own goals, which dynamically shaped the growth of those organisations.

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Q.38 Explain the term Agency theory (AT).

The notion of agency theory is used to understand and address problems in the connection between corporate principals and their agents. The most common example is the interaction between shareholders, who act as principals, and corporate executives, who act as agents.

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Q.39 What is Just-in-time (JIT) in supply chain management?

Just-in-time (JIT) is a manufacturing and inventory management system that helps to boost efficiency and reduce waste. The goal of this supply chain management method is to link raw material deliverers with manufacturing schedules and client orders directly.

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Q.40 Define Customer relationship management (CRM).

Customer relationship management (CRM) is a set of techniques, methods, and technology that businesses employ to manage and analyse customer interactions and data over the course of their relationship with them. The purpose is to improve customer service relationships, encourage client retention, and increase sales. CRM systems collect data from customers across several channels, or points of contact, with the firm, such as the company's website, phone, live chat, direct mail, marketing materials, and social media.

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Q.41 What are the types of CRM?

The types of CRM are: Strategic CRM Operational CRM Analytical CRM Collaborative CRM

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Q.42 Explain Material requirements planning (MRP).

Material requirements planning (MRP) is a computer-based inventory management solution that helps firms increase their productivity. Material requirements planning systems are used by businesses to predict raw material amounts and schedule deliveries.

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Q.43 What are the features of Total Quality Management?

Customer Focused Involved Employees Process Oriented Mutually Dependent Systems Strategic Approach Continuous Improvement Data-Driven Decisions Effective Communications

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Q.44 Define Quick Response Manufacturing.

Quick response production is a manufacturing method that stresses the advantages of shortening internal and external lead times.

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Q.45 What are the advantages of mrp for a business?

MRP helps a company in the following ways: Ascertains the availability of materials and components when they are required. Inventory levels are optimised, and costs are kept to a minimum. The manufacturing efficiency has greatly improved. Reduced lead times result in higher customer satisfaction.

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Q.46 Explain Reverse supply chain.

It's a set of procedures for retrieving a used goods from a consumer and either discarding or reusing it. Reverse supply chains are becoming an increasingly important component of business for a rising number of enterprises in industries ranging from carpets to computers.

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Q.47 What is Supply Chain Risk Management?

"The adoption of solutions to manage both everyday and exceptional risks along the supply chain based on constant risk assessment with the goal of minimising vulnerability and assuring continuity," according to supply chain risk management.

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Q.48 Explain Sustainable SCM.

From product design and development to material selection (including raw material extraction or agricultural production), manufacturing, packaging, transportation, warehousing, distribution, consumption, return, and disposal, sustainable supply chain management involves integrating environmentally and financially viable practises into the entire supply chain lifecycle.

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Q.49 What is Stochastic Analytical Models?

A stochastic model is a tool that allows for random fluctuation in one or more inputs across time to estimate probability distributions of future outcomes. The random variation is usually based on fluctuations in historical data for a specific period recorded using normal time-series techniques.

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Q.50 Explain Sustainability Models.

Every business owner aspires to have a sustainable business model: one that turns a profit quickly and stays afloat in the long run. A business strategy that stresses sustainability must, at the very least, consider all stakeholders, assess and resolve environmental impacts, and report transparently and thoroughly.

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Q.51 Define Sustainable SCM.

The impact of a company's supply chain on human rights, fair labour standards, environmental advancement, and anti-corruption legislation is known as supply-chain sustainability. Incorporating sustainable options into supply-chain management is becoming increasingly important.

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Q.52 What are the benefits of GSCF?

The goal of GSCF is to maximise both capital availability and cost within a buyer-supplier supply chain. GSCF accomplishes this by aggregating all data acquired throughout the supply chain process and linking it to the physical control of commodities.

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Q.53 What is Global Supply-Chain Finance?

The goal of GSCF is to maximise both capital availability and cost within a buyer-supplier supply chain. GSCF accomplishes this by aggregating all data acquired throughout the supply chain process and linking it to the physical control of commodities.

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Q.54 Define QRM Cell.

Quick Response Manufacturing (QRM) is a method for lowering lead times in all areas of a company. The increased agility and responsiveness of the organisation as a result of the improved speed and responsiveness provides a competitive advantage.

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Q.55 Explain the procurement process in supply chain management.

Procurement refers to the process of obtaining the items that your organisation requires, whereas supply chain management refers to the broad infrastructure that is required to obtain those goods. Supply chain management should be viewed as only one of many duties that a procurement department must deal with.

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