[Solution] Supply Chain Management

Key Components

• Purchasing management (procurement): Buying materials and resources needed for products/services
• Inventory management: Managing supply and efficient movement at each production stage

Types of Inventory

• Raw materials: Inputs before transformation
• Work in process: Items undergoing production
• Finished goods: Products ready for customers
• In transit: Products being delivered to customers

Purchasing management and inventory management are collectively known as .

View Explanation

Supply chain management consists of managing the purchase of inputs as well as managing their supply and efficient movement at each stage of the production process.

What is the purpose of the just-in-time (JIT) method of inventory management?

View Explanation

JIT manages inventory precisely by acquiring materials just before they're needed, preventing production delays while avoiding space and money tied up in unused resources.

Match each description with its inventory type:

Manager uses shop-floor control systems

Products delivered to customers

Sufficient inventory to meet customer demand

Will be used to make the product

View Explanation

- Work in process: Undergoing production with regulated flow - In transit: Finished goods being delivered efficiently - Finished goods: Ready products meeting demand - Raw materials: Inputs before transformation