NIOS Class 10 Logistics & Supply Chain Management Chapter 16 Supply Chain: Business Process

NIOS Class 10 Logistics & Supply Chain Management Chapter 16 Supply Chain: Business Process Solutions to each chapter is provided in the list so that you can easily browse through different chapters NIOS Class 10 Logistics & Supply Chain Management Chapter 16 Supply Chain: Business Process and select need one. NIOS Class 10 Logistics & Supply Chain Management Chapter 16 Supply Chain: Business Process Question Answers Download PDF. NIOS Study Material of Class 10 Logistics & Supply Chain Management Notes Paper 258.

NIOS Class 10 Logistics & Supply Chain Management Chapter 16 Supply Chain: Business Process

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 16 Supply Chain: Business Process, NIOS Secondary Course Logistics & Supply Chain Management Solutions for All Chapters, You can practice these here.

Supply Chain: Business Process

Chapter: 16

INTEXT QUESTIONS 16.1

1. __________ is the process that speaks about flow of goods from manufacturer to the customer.

Ans: Supply Chain Management. 

2. Supply Chain Management starts with Sourcing Materials and ends with ensuring Proper Supply of items to the user.

(A) True.

(B) False.

Ans: (A) True.

3. The Key element of supply chain business is

(A) Sourcing.

(B) Distribution.

(C) Material Flow.

(D) All the above.

Ans: (D) All the above.

INTEXT QUESTIONS 16.2

1. There are ______________ levels of planning in supply chain management.

Ans: 3.

2. The time horizon for strategic planning is 1- 2 years

(A) True.

(B) False.

Ans: (B) False.

3. The process of identifying the future requirements is known as

(A) Sourcing.

(B) Forecasting.

(C) Scheduling.

(D) Locating.

Ans: (B) Forecasting.

INTEXT QUESTIONS 16.3

1. Identify the important characteristic required for a supplier

(A) Experience.

(B) Financial Stability.

(C) Prompt Delivery.

(D) All the above.

Ans: (D) All the above.

2. Before getting to the numbers, companies need to start by establishing good communication.

(A) True.

(B) False.

Ans:True.  

3. Expand MOQ

Ans: Minimum Order Quantity. 

4. In __________ Model, suppliers make deliveries off a predetermined schedule.

Ans: Continuous Replenishment.

INTEXT QUESTIONS 16.4

1. Identify the number of types of production.

(A) Three.

(B) Four.

(C) Five.

(D) Two.

Ans: (A) Three.

2. The Secondary production uses the materials obtained from primary production to manufacture finished products.

(A) True.

(B) False.

Ans: (A) True.

3. By implementing an effective supply chain management, the companies can attain.

(A) Time Saving.

(B) Cost Saving.

(C) Customer Satisfaction.

(D) All the above.

Ans: (D) All the above.

INTEXT QUESTIONS 16.5

1. Expand EPIP.

Ans: Electronic Invoice Presentment and Payment.

2. Digital Payments decreases operational efficiency.

(A) True.

(B) False.

Ans: (B) False.

3. Material Flow involves Forward Flow and __________.

Ans: Backward Flow.

4. The process of collecting the defective items from customers is known as __________.

Ans: Reverse Logistics. 

TERMINAL EXERCISE

1. List out the levels of Planning in SCM.

Ans: The levels of Planning in SCM are: 

(i) Demand Planning: Demand planning is the foundation stone for the supply chain process that can then be used to decide on optimum inventory and avoid unnecessary costs. Demand planning is done by looking into historical data, projected sales, market conditions and other factors. Today, demand planning is done with the help of advanced technology. Powered by artificial intelligence and machine learning capabilities, advanced supply chain management software can predict demand with precision. It can ‘sense’ demand by looking at real-time data, market conditions and events and point-of-sale data. The use of predictive analytics for demand forecasting has also increased. This helps to better understand consumer behaviour, buying patterns and other factors that influence demand.

(ii) Supply Planning: The next step is to come up with a supply plan that can synchronise with the demand plan and meet the overall requirements of the business. The supply plan involves sourcing of raw materials, components and other goods needed for production. The goal is planning supply that can meet the demand for the product in the best possible way.

(iii) Production Planning: This involves resource allocation of employees, material and production capacity. The broad objectives of a production plan are reducing waste and only producing what is required to ensure the availability of optimum inventory. The latter of these is realised with a supply chain plan that increases cross-functional visibility through efficient inventory management.

(iv) Sales and Operations Planning (S&OP): Often conducted once a month, sales and operations planning essentially brings diverse business teams working with different objectives on the same page. It helps sales and marketing leaders assess and merge their plans with operations. The all-party meet of different team’s aids in the coordination of supply assets and capabilities to meet demand requirements for the short and long term. In some companies, S&OP is performed as part of a broader process called integrated business planning that incorporates plans of other departments, such as finance and HR, in a single, company-wide plan.

2. Explain the importance of different types of planning in Supply Chain Management: 

Ans: The important of different types of planning in supply chain management are mentioned below:  

(i) Improved Efficiency: Having the capacity to incorporate supply chains, innovative product strategy and integrated logistics put you in a position to predict demand and make appropriate actions. Without a doubt, this is one of the greatest benefits of supply chain planning. This is because when a solid supply chain plan is in place, it will be well positioned to adjust dynamically to fluctuations in demand, emerging markets and the short life cycles of certain products.

(ii) Increase Output: Improvements in the supply chain can also lead to improvements in communication. It leads to optimised coordination and collaboration with companies that handle shipping and transporting, as well as vendors and suppliers.

(iii) Better Cooperation: The most successful businesses often have superior communication as a fundamental feature. In fact, when communication is lacking, your vendors, distributors and employees will struggle to have an idea of what your plans are.

Supply chain planning will yield the huge benefit of improved cooperation between different entities. Furthermore, when you open your doors to new technology like supply chain management software, you can take advantage of not even having to be in the same location with people to communicate and collaborate effectively. Through improved communication between different areas of your business, you will have quicker access to accurate forecasts, reports, quotes, statuses and many other plans.

(iv) Increased Profits: When you open up your business to state-of-the-art technologies and better collaboration between different business areas, it will improve efficiency and productivity, therefore leading to increases in your business profit level in the long-run.

(v) Eliminate Delays: Through well planned and executed communication, companies can reduce or eliminate delays in supply chain processes. With everyone more aware of their role in the business, and what others are doing, issues like late shipments, logistical errors and hold-ups on the production lines can be avoided. 

3. Explain the steps involved in the process associated with Sourcing.

Ans: The steps involved in the process associated with Sourcing are:  

(i) Selecting a Supplier: Selecting a supplier as the source means the company needs to spend time and effort to get to know about the supplier and ask the tough questions. After all, it’s the reputation of the business that’s at stake. Companies need to do business with the suppliers that will ensure their products will deliver the best results. 

Here are some characteristics to look for when choosing a supplier:

(ii) Securing a Supplier: If you can visit a supplier in person, your chances of securing that vendor grow exponentially. a few of the critical steps to consider when researching and securing a supplier are as follows:

(a) Do Proper Research: Starts by carrying out extensive analysis on the supplier’s reputation. It can be done through Better Business Bureau, local Chambers of Commerce in areas where they do business, and online search engines for customer complaints. These can provide important clues and provide areas to probe. Checking vendor social media accounts can be enlightening. Customers aren’t shy about leaving negative comments online. Verification of registrations, business licences, and any required certifications has to be done The company needs to fully vet any supplier and verify their credibility. Once you have a strategy in place, you can be particular about which suppliers meet your needs and those that won’t.

(b) Negotiate a Fair Deal: A Manufacturer needs to strike a deal at a fair price that allows him/her to make the kind of profit they need. Everybody, however, deserves to get a fair deal and make money. Companies may find that the supplier they really want to do business with is unable to meet the price point. If that’s the case, companies need to make a decision on whether they can accept their price or need to find other sources.

A Manufacturer needs to strike a deal at a fair price that allows him/her to make the kind of profit they need. Everybody, however, deserves to get a fair deal and make money. Companies may find that the supplier they really want to do business with is unable to meet the price point. If that’s the case, companies need to make a decision on whether they can accept their price or need to find other sources. 

(c) Determine Payment Terms: Every business entity needs to get money for the items they supply. The time and mode of payments for the goods to be supplied can make a difference in the cash flow of both companies. There are plenty of examples where two sides strike a deal on everything else, but get hung up on lines of credit or payment terms. Often, companies can get better deal points if they guarantee payments within shorter time periods. Before getting to the numbers, companies need to start by establishing good communication and taking time to understand a supplier’s business. This involves Making sure that the relationship will be mutually beneficial to both parties, and being honest about what is expected from the relationship. “Don’t be afraid to ask for better terms than what’s offered. For example, if vendors expect payment in 30 days, you can certainly ask to extend credit for 60 or 90 days. You may not get it, but you might! Or, maybe you’ll end up at 45 days which gives you 15 days’ extra time to pay.” A Famous quote on payments says “Regardless of where you wind up, think carefully about what you want before you sign off on payment terms. You’ll live with the consequences.” It’s always better to have the discussion at the beginning and be transparent about the plan rather than going back to a supplier later and asking for changes.

(d) Specify Delivery Expectations: The importance of a strong supplier-to-business relationship applies to delivery times as well. Depending on the business structure and needs, there are various options. In negotiating an agreement, discussing the needs fully is highly important. This discussion will help companies to find if the supplier is unable to meet the needs. Companies may also be able to negotiate better pricing or terms by adapting the delivery expectations to work the way the supplier prefers. If you have the flexibility in your supply chain or timeline, you may be able to conclude a better deal. Managing your inventory effectively helps reduce your holding costs and tying. up capital that could be used elsewhere in your business. Whether you choose continuous replenishment, just in time inventory, or on-demand delivery, all require the cooperation of reliable businesses and suppliers.

4. Mention the different types of supplier delivery models.

Ans: The different types of supplier delivery models:

(i) Continuous Replenishment Model: In the continuous replenishment model, suppliers make deliveries off a predetermined schedule, often in short periods, based on a company’s inventory and real-time demand. When companies employ continuous replenishment, they encourage reduced inventory levels because they’re ordering in small batches, rather than large batches which are costlier and reduce supplier’s flexibility.

(ii) Just in Time Delivery Model: Under a just-in-time delivery model, companies receive supplies on a need basis. In doing so, they reduce inventory levels and costs because just in time delivers only what is needed to increase efficiency and decrease excess waste. With the help of inventory management software, you can better predict inventory demand with forecasting tools to have the right amount of goods. 

(iii) On-Demand Delivery Model: In an on-demand delivery model, suppliers deliver goods when demanded by the Customer. In this model, one can choose a supplier who has plenty of products and can be flexible when order times change rapidly. If a company demands it, the supplier must be ready and on time with prompt delivery.

(iv) Create a Contract: Once you’ve negotiated the terms, it’s time to prepare a contract. Oral agreements or invoices may lead to errors. While they may have some enforceability, it may be expensive and time-consuming to prove if you ever need to take legal action. Writing up a written contract that includes all parties involved, establishing payment terms, and other important details, such as timely delivery. A standard contract should cover what’s expected and what happens when one party fails to live up to the agreement.

A vendor contract should cover the following:

(a) Details of the work the supplier agrees to provide.

(b)  The quality of the supplied goods or provided services.

( c)  Length of the contract term Payment terms.

(d)  Indemnity, in the event of loss arising from negligence.

A contract is only legally enforceable after the customer and supplier both sign it demonstrating an agreement to live up to the contract’s terms and conditions. Besides legal reasons, it’s also important to establish a relationship built upon mutual expectations. Typically, the customer includes a statement within the agreement that describes the quality and quantity of goods. Payments made to the supplier are based on the successful fulfilment of this statement.

5. What do you mean by production process? Give a brief description of different types of production activity.

Ans: The process of bringing something into existence is called production. It is a process of combining various inputs to get an output which has a value and usage. In simple terms it can be stated as an organised activity to convert resources into finished products.

Different types of production activity are: 

(i) Primary Production: The industries involved in primary production carry out activities like mining, oil extraction, agriculture(crop cultivations). It involves extracting the resources on the surface of the earth, below the earth and from seas and oceans. Secondary Production The process of converting the raw materials into finished products. The Secondary production uses the materials obtained from primary production to manufacture finished products. It has all forms of manufacturing industries (Ex; Building construction, Bike and Car Manufacturing).

(ii) Tertiary Production: It aims at ensuring the finished product reaches the customer for final usage. It includes industries like transportation, banks & insurance companies, legal services etc.

(iii) Secondary Production: The process of converting the raw materials into finished products. The Secondary production uses the materials obtained from primary production to manufacture finished products. It has all forms of manufacturing industries (Ex; Building construction, Bike and Car Manufacturing).

6. How does SCM support the production process of the economy?

Ans: A Proper Supply Chain Mechanism is necessary to ensure continuous production activity. Proper Supply  Chain Management involves creating a link between various activities in producing goods so that the final product reaches the customer on time.

7. “Digital payments provide a platform to regulate supply chain management processes at a faster rate”. List out various benefits in the light of the statement.

Ans: Electronic  invoice and bill presentment Integrating Electronic Invoice Presentment and Payment (EIPP) systems with supply chain management saves time and money. EIPP tools allow companies to view detailed invoice-level information and remittance details. This eliminates the errors common in the manual processes.

Benefits of digital payments are:  

(i) Increasing Operational Efficiency: The fundamental aim of any business is to achieve and maintain operational efficiency. With the complexity of business increasing on a regular basis Digital payments help companies streamline their business by making it more accessible to all stakeholders thereby increasing efficiency.

(ii) Accommodating Customers: Customers are attracted towards digital payment options due to their simplicity and streamlined nature. The COVID-19 has further pushed more and more people to digital payments as it is much safer than traditional payments in which cash is exchanged. Moreover, according to a survey by Olympus Europa, 40% of customers don’t follow through with a purchase if they aren’t provided with their preferred payment option which is mostly digital.

(iii) Showcasing Transparency: The main benefit of using digital payments is increased financial transparency. Traditional methods of maintaining paper documents are costly, time consuming in nature while Digital receipts of payment allows for greater transparency and accountability from an organisation as online records of past transactions, payments can be traced with ease.