Few common interview questions and answers related to supply chain management department are mentioned below -
Q. What is supply chain management?
Supply chain management is the management and planning of all supply chain activities that take place in a business. This can include logistics, sourcing and product development.
Q. What are the main functions of supply chain management department?
- Supply chain management keeps the flow of money, materials, and information
- Sourcing new suppliers and materials
- Supply chain management connects the activities of logistics, purchasing, and operations to ensure that they focus on goals that benefit overall performance
- Co-ordinate with interelated department
- Manage existing resources
Q. What do you mean by LC?
A Letter of Credit (LC) is a document that guarantees the buyer's payment to the sellers. It is issued by a bank and ensures timely and full payment to the seller. If the buyer is unable to make such a payment, the bank covers the full or the remaining amount on behalf of the buyer.
Q. How can sourcing a new material?
Sourcing of new material should be with a balance between the quality of raw materials and the affordable price.
Q. What is the pre-requirement for selection of a new source of raw material?
- Adequate stability data of raw material
- GMP certificate of the company
- Material safety data sheet (MSDS)
- Trial sample
Q. Which department is interrelated with SCM?
- R&D
- Material management or warehouse
- Production
- Quality control
Q. What do you mean by negotiation?
A negotiation is a strategic discussion that resolves an issue in a way that both parties find acceptable results.
Q. What is SKU Number?
SKU number is a unique code used to identify particular line items. Where SKU means 'Stock Keeping Unit'.
Q. What are the 4 methods of communication?
- Verbal Communication
- Nonverbal Communication
- Written Communication
- Visual Communication
Few Terminology
- FIFO= First in First Out
- LIFO= Last in First Out
- PR= Purchases Requisition
- PO=Purchases Order
- W/O=Work Order
- SOP = Stander operating procedure.
- ERP = Enterprise resources Planning.
- MRIR = Material Receive and Inspection Report.
- LC = Letter of credit.
- SPR= Store Purchases Requisition
- QC= Quality Certificate
- MIR= Materials Issue Requisition
- SR= Store Requisition
- SAP= System Application Process
- CS= Comparison Statement.
- BOE= Bill of Entry/ exchange
- BOM= Bill of Materials.
- MRN= Material receive note. (MRN for raw materials, spares parts, sub assemblies, componenets etc.)
- GRN= Goods Received Note (GRN is a voucher made against receipt of finished goods)