NIOS Class 10 Logistics & Supply Chain Management Chapter 13 Importance of Supply Chain Management

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NIOS Class 10 Logistics & Supply Chain Management Chapter 13 Importance of Supply Chain Management

Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 10 Logistics & Supply Chain Management Chapter 13 Importance of Supply Chain Management, NIOS Secondary Course Logistics & Supply Chain Management Solutions for All Chapters, You can practice these here.

Importance of Supply Chain Management

Chapter: 13

INTEXT QUESTIONS 13.1

1. __________ is very essential as it helps in the achievement of various goals of the company.

(a) SCM.

(b) ERP.

(c) Logistics.

(9) Manufacturing. 

Ans: (a) SCM.

2. Supply chain management has the potential __________.

(a) Improve customer service.

(b) Save operational expenses.

(c) Improve a company’s financial position.

(d) All of the above.

Ans: (d) All of the above.

3. The birth of the digital era has not brought any change to the world of commerce in recent years.

(a) True.

(b) False.

Ans: (b) False.

4. The internal management control structure chosen has been shown to influence __________ business performance.

(a) National.

(b) Local.

(c) Multinational.

(d) International.

Ans: (b) Local.

5. SCM is especially essential for businesses with __________ operations.

(a) National.

(b) local.

(c) Multinational.

(d) International.

Ans: (c) Multinational.

INTEXT QUESTIONS 13.2

1. A reason for the importance of supply chain management is that inventory control and visibility are two crucial factors in every corporate operation.

(a) Yes.

(b) No.

Ans: (a) Yes.

2. __________ control and visibility have a direct influence on production costs and, as a result, on the organisation’s profitability.

(a) Purchase.

(b) Sale.

(c) Inventory.

(d) Supply Chain.

Ans: (c) Inventory.

3. __________ must be balanced, and the proper or optimal inventory turnaround must be determined.

(a) Inventory Control.

(b) Inventory Visibility.

(c) Both A & B.

(d) Purchase.

Ans: (c) Both A & B.

4. __________ is/are a crucial factor(s) in every corporate operation.

(a) Inventory Control.

(b) Inventory Visibility.

(c) Both A & B.

(d) Purchase.

Ans: (c) Both A & B.

5. The __________ inquires about the product at the numerous retail/wholesale locations that are accessible.

(a) Consumer.

(b) Retailer.

(c) Distributor.

(d) Manufacturer.

Ans: (a) Consumer.

INTEXT QUESTIONS 13.3

1. Concepts and methods were condensed into __________ principles in Supply Chain Management.

(a) 10.

(b) 8.

(c) 6.

(d) 7.

Ans: (d) 7.

2. The __________ network is the next item to personalise once you’ve divided your consumer base.

(a) Supply Chain.

(b) Logistics.

(c) Consumer.

(d) Transportation.

Ans: (b) Logistics.

3. _________ is in the opposite polarity of “Differentiation”.

(a) Standardisation.

(b) Configuration.

(c) Restoration.

(d) Rationalisation.

Ans: (a) Standardisation.

4. ABC – Expand.

(a) Activity-Based Charging.

(b) Activity-Based Costing.

(c) Analytics-Based Costing.

(d) American-Based Costing.

Ans: (a) Activity-Based Charging.

5. Which of the following is not a principle of Supply Chain Management?

(a) Create it that facilitates multi-level decision-making.

(b) Strategically outsource.

(c) Adopt both service and financial metrics.

(d) Standardised logistics network.

Ans: (b) Strategically outsource.

INTEXT QUESTIONS 13.4

1. Activities in the supply chain may be divided into __________ categories.

(a) Five.

(b) Three.

(c) Two.

(d) Four.

Ans: (b) Three.

2. Which of the following is not a category of supply chain management?

(a) Strategic.

(b) Tactical.

(c) Operational.

(d) Rigid.

Ans: (d) Rigid.

3. __________ are tracked in terms of performance.

(a) Tactics.

(b) Activities.

(c) Strategies.

(d) Operations.

Ans: (b) Activities.

4. Transportation from suppliers and receiving inventory are examples of __________ operations.

(a) Inbound.

(b) Outbound.

(c) Rebound.

(d) Misbound.

Ans: (a) Inbound.

5. The use of materials and the flow of final goods are all part of the __________ process.

(a) Production.

(b) Distribution.

(c) Manufacturing.

(d) Marketing.

Ans: (c) Manufacturing.

6. GSCF – Expand.

(a) Global Sales Chain Forum.

(b) Global Supply Chain Forum.

(c) Global Supply Charge Forum.

(d) Global Sales Charge Forum.

Ans: (C) Global Supply Charge Forum.

INTEXT QUESTIONS 13.5

1. The flow in Supply chain management should be.

(a) Single-Directional.

(b) Multi-Directional.

(c) Bi-Directional.

(d) Uni-Directional.

Ans: (c) Bi-Directional.

2. FTL – Expand.

(a) Full Load Truck.

(b) First Load Truck.

(c) Fast Load Truck.

(d) Food Load Truck.

Ans: (a) Full Load Truck.

3. LTL – Expand.

(a) Low Load Truck.

(b) Less than a Load Truck.

(c) Light Load Truck.

(d) Labour Load Truck.

Ans: (b) Less than a Load Truck.

4. __________ integration across the supply chain to communicate useful information such as demand signals, projections, inventory, transportation, possible cooperation, and so on.

(a) Process.

(b) Progress.

(c) Product.

(d) Packed.

Ans: (a) Process.

TERMINAL EXERCISE

1. What is Supply Chain?

Ans: A supply chain is the network of all the individuals, organisations, resources, activities and technology involved in the creation and sale of a product. A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.

2. Enumerate the importance of Supply Chain Management

Ans: The supply chain management system is regarded to be the backbone of today’s dynamic business organisations. This sentence alone demonstrates the importance of the supply chain and its management in the turbulent business world. A demand for a product is produced whenever it is presented and marketed. At this step, the consumer inquires about the product at the numerous retail/wholesale locations that are accessible.

At this stage, the product must be available in every market in the country as well as at all sales counters where customers may buy and get delivery. If a product is not available at the appropriate place and at the right time for any reason, it might cause a reduction in client interest and demand. This might harm the product’s success. As a result, as a support to the sales and marketing plan, efficient transportation Network design and administration is critical. In fact, it is possible to argue that without effective transportation network design and administration, the sales and marketing plan would fail. As a result, efficient supply chain management is required to ensure effective Market Coverage and the availability of the correct product at the right time in diverse parts of the country. Another reason for the importance of supply chain management is that inventory control and visibility are two crucial factors in every corporate operation. Inventory control and visibility have a direct influence on production costs and, as a result, on the organisation’s profitability. The lower the amount of capital held in inventory, the higher the profitability, and vice versa. Inventory visibility, on the other hand, is an important consideration. Both must be balanced, and the proper or optimal inventory turnaround must be determined. Every organisation has an inventory turnaround standard that is desirable or optimal for their business. The number of times inventory is sold and replaced.

3. What are the principles of supply chain management?

Ans: The principles of supply chain management are mentioned below: 

(i) Adapt Supply Chain to Customer’s Needs: Customers’ requirements are addressed in the training of both businesspeople and supply chain specialists. Firms separate clients into distinct categories to better understand them, which term “segmentation.” ABC analysis, which divides customers based on sales volume or profitability, is the most basic method of segmenting customers. Product, industry, and trade channel segmentation are additional options. Customers should be separated based on service demands, such as “sales and merchandising needs” and “order fulfilment needs,” according to Anderson et al. at the time. The organisation should concentrate on the demands of their customers, but this does not appear to be enough these days. The reason for this is that their clients may not realise what they require until their rivals provide it. For example, Online Shopping was launched in 2011 as a subscription service (free 2-day shipping and discounted 1-day shipping). People are still debating whether or not this program makes sense today. But one thing is certain: customers are increasingly turning to Online Shopping. The moral to this story is that you should also “anticipate” the wants of your customers.

(ii) Customise Logistics Network: The logistics network is the next item to personalise once you’ve divided your consumer base. To service various segments, you must customise distinct logistic networks. Companies must plan and manage their logistical, warehousing, and transportation activities to fulfil the unified standard. For example, Organization has separate logistics networks for different customers if they were a contract manufacturer in China. Each client in the United States or the European Union may already have control over raw material sources and may request specialised manufacturing lines, as well as 3PL businesses and air/sea carriers. As a result, logistics network design is a customer-driven Project.

(iii) Align Demand Planning Across the Supply Chain: Supply chain professionals are educated to exchange demand data with business partners so that no unneeded inventory is kept on hand. This idea holds in general. Only Walmart, however, regularly shares demand data with trading partners. 

Williams and Waller (2011) published an intriguing report in which the results of their investigation revealed that: 

(a) Using own past order data rather than Point of Sale (POS) data from merchants is more accurate for forecasting demand at the Stock Keeping Unit(SKU)/Customer level.

(b) Using POS data from retailers rather than their history order data for forecasting demand at the SKU/Store level is more accurate than using their historical order data.

(iii) Differentiate the Product by Bringing it Closer to the Client: Dell is well-known for storing components and assembling them until after the consumer has placed an order to boost product variation. This principle still holds true, but you should also examine another principle.

(iv) “Standardisation” is in the Opposite Polarity of “Differentiation”: For example, Some cosmetics companies create products and pick packaging and labelling that are compliant with the laws of numerous Asian nations. As a result, instead of one SKU per country, they only create one SKU that may be marketed in 15 countries. They can reduce costs significantly by standardising products adequately owing to economies of scale. As a result, uniformity is something you should think about.

(v) Create it That Facilitates Multi-Level Decision-Making: To support the re-engineered business process, enterprise-wide systems are replacing several rigid and poorly integrated systems. It’s improving people’s knowledge of process flaws, and it’s helping businesses figure out what kind of technology they need.

(vi) Strategically Outsource: Outsourcing entails enlisting the help of other parties to complete certain duties on the company’s behalf. It is the quickest approach to saving money. However, while outsourcing work, several golden standards must be followed. It is recommended that businesses do not outsource their core competencies. Vendors for outsourcing the task should be selected accordingly. It is always preferable to retrain a small number of employees who have sufficient knowledge and experience to manage outsourced vendors.

(vii) Adopt Both Service and Financial Metrics: Robert Kaplan stated that maintaining the ABC costing model to reflect changes in activities, processes, goods, and consumers is tough. Then he created Time Driven Activity Based Costing, a more refined idea.

4. List out the various activities of SCM.

Ans: Supply Chain Management is a cross-functional method to control the transfer of raw materials into and completed items out of a business to the end consumer.To understand the tasks necessary to control material mobility across organisational and functional boundaries, several models have been presented.

The supply chain council promotes Supply Chain Operations References (SCOR), a supply chain management approach. The Global Supply Chain Forum has proposed a paradigm called Supply Chain Management (GSCF). Activities in the supply chain may be divided into three categories: strategic, tactical, and operational. The development and execution of a long-term supply chain plan is the foundation of a company’s Supply Chain Management activities. 

This plan should include, among other things:

(a) Determine which supply chains the company wants to compete in.

(b) Assist managers in understanding how the company will provide value to the supply chain.

(c) Assist in the selection of supply chain partners such as suppliers, subcontractors, transportation companies, and distributors. When companies are preparing to comprehend the supply networks in which they compete, it’s helpful to map the physical and information flows that make up such supply chains. Firms may begin to understand how they offer value. The firm’s supply chain strategy, of course, doesn’t exist in a vacuum. It must be in line with the company’s overall strategy as well as efforts in areas like buying, logistics, production, and marketing.

5. Discuss the problems faced by SCM in today’s context.

Ans: The problems faced by SCM in today’s context are: 

(i) Distribution Network Configuration: Number,location and network mission of supplies , production  facilities,distribution centres warehouse , cross-docks and customers. Distribution strategy: Operating control (centralization decentralisation or shared) delivery scheme, e.g.,direct shipment, pool point shipping, cross-docking, DSD (Direct Store Delivery), closed-loop shipping; mode of transportation, e.g., motor carrier, including truckload, LTL, and parcel; railroad; intermodal transport, including TOFC (Trailer On Flatcar) and COFC (Container On Flatcar); ocean freight; airfreight; replenishment strategy  (e.g., owner-operated, private carrier, common carrier,  contract carrier, or3PL).

(ii) Trade-Offs in Logistical Activities: To obtain the lowest overall logistics cost, the aforementioned operations must be carefully integrated. If only one of the tasks is optimised, trade-offs may raise the entire cost. Full truckload (FTL) prices, for example, are less expensive per pallet than Less Than Truckload (LTL) shipments. If, on the other hand, a complete truckload of a product is bought to save money on transportation, inventory holding costs will rise, potentially raising overall logistics costs. When planning logistical tasks, it is therefore critical to use a systems perspective. These tradeoffs are critical in building the most efficient and successful Logistics and Supply Chain Management strategy.

(iii) Information: Process integration across the supply chain to communicate useful information such as demand signals, projections, inventory, transportation, possible cooperation, and so on.

(iv) Inventory Management: Quantity and location of inventory, including raw materials, work-in-progress (WIP), and finished goods.

(v) Cash-Flow: Creating payment conditions and techniques for transferring payments amongst supply chain participants. Managing and directing the movement of supplies, information, and cash across the supply chain is referred to as supply chain execution. The flow is bidirectional.