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Ques:- How to issue process, how to terms of issue to sub-cont. etc
Right Answer:
The issuing process involves the following steps:

1. **Request for Materials**: The sub-contractor submits a request for materials needed for their work.
2. **Verification**: Check the availability of the requested items in inventory.
3. **Approval**: Obtain necessary approvals from management or relevant departments.
4. **Documentation**: Prepare an issue note or material requisition form detailing the items, quantities, and purpose.
5. **Issuing Materials**: Physically hand over the materials to the sub-contractor or arrange for delivery.
6. **Record Keeping**: Update inventory records and maintain a copy of the issue note for tracking and auditing purposes.
7. **Follow-Up**: Ensure the sub-contractor uses the materials as intended and monitor for any discrepancies.

Terms of issue may include conditions like return policies, usage restrictions, and accountability for loss or damage.
Ques:- Sharp Analytical Skills
Right Answer:
Sharp analytical skills in supply chain management involve the ability to assess data, identify trends, solve problems, and make informed decisions to optimize processes and improve efficiency.
Ques:- Procurement Activities
Right Answer:
Procurement activities involve the processes of sourcing, purchasing, and acquiring goods and services needed by an organization. This includes identifying suppliers, negotiating contracts, placing orders, and managing supplier relationships to ensure timely delivery and quality of products.
Ques:- How can goods reach safe and accurate time to customer?
Right Answer:
To ensure goods reach customers safely and on time, implement efficient logistics planning, use reliable transportation methods, maintain clear communication with suppliers and customers, utilize tracking systems, and optimize inventory management.
Ques:- What is the actual problem comes during the purchase
Right Answer:
The actual problems that can arise during the purchase include inaccurate demand forecasting, supplier reliability issues, price fluctuations, quality discrepancies, communication breakdowns, and delays in delivery.
Ques:- What process you adopt for purchase
Right Answer:
The process I adopt for purchasing includes the following steps:

1. Identify the need for goods or services.
2. Conduct market research to find potential suppliers.
3. Request and evaluate quotes or proposals from suppliers.
4. Negotiate terms and conditions, including price and delivery.
5. Place the purchase order with the selected supplier.
6. Receive and inspect the goods or services upon delivery.
7. Process payment and maintain records for future reference.
Ques:- You have mentioned in your profile that you have handled many profiles. How come is it possible?
Right Answer:
I have handled multiple profiles by taking on diverse roles and responsibilities within logistics and supply chain management, allowing me to gain experience in various aspects of the field.
Ques:- How do you calculate safety stock for consumption based planning ?
Right Answer:
To calculate safety stock for consumption-based planning, use the formula:

Safety Stock = Z * σL

Where:
- Z = Z-score (based on desired service level)
- σL = Standard deviation of demand during the lead time

You can also consider average demand and lead time variability in your calculations.
Ques:- Tell the difference between Physical inventory and Cycle counting and which process is better ? and why?
Right Answer:
Physical inventory involves counting all inventory items at once, usually at the end of a financial period, while cycle counting is a method of counting a subset of inventory on a regular basis throughout the year. Cycle counting is generally considered better because it allows for more frequent accuracy checks, minimizes disruption to operations, and helps identify discrepancies in real-time.
Ques:- Explain Consumption based planning and Demand based planning, which is better and how?
Right Answer:
Consumption-based planning relies on historical usage data to forecast future inventory needs, while demand-based planning uses market demand forecasts and customer orders to drive inventory decisions.

Neither is universally better; the choice depends on the business context. Consumption-based planning is effective for stable demand patterns, while demand-based planning is better for fluctuating markets or when customer preferences change rapidly.
Ques:- What are the GL postings during sales order to billing cycle?
Right Answer:
During the sales order to billing cycle, the GL postings typically include:

1. **Sales Revenue**: When the sales order is created, a debit is recorded to Accounts Receivable and a credit to Sales Revenue.
2. **Cost of Goods Sold (COGS)**: When the goods are shipped, a debit is recorded to COGS and a credit to Inventory.
3. **Accounts Receivable**: When the invoice is generated, a debit is recorded to Accounts Receivable and a credit to Sales Revenue (if not already recorded).
4. **Cash/Bank**: When payment is received, a debit is recorded to Cash/Bank and a credit to Accounts Receivable.
Ques:- What are the different types of MRP runs (i.e. Regenerative, Net Change etc).
Right Answer:
The different types of MRP runs are:

1. **Regenerative MRP** - Processes the entire planning horizon and recalculates all requirements from scratch.
2. **Net Change MRP** - Only processes changes since the last run, updating only the affected items.
3. **Net Change with Planning** - Similar to net change but also considers planned orders and forecasts.
4. **Single-Item MRP** - Focuses on a specific item to calculate its requirements without affecting others.
Ques:- Explain Sales order to billing cycle?
Right Answer:
The Sales Order to Billing cycle involves the following steps:

1. **Sales Order Creation**: A customer places an order, and a sales order is created in the system.
2. **Order Confirmation**: The sales order is confirmed, and the customer is notified.
3. **Order Fulfillment**: The products are picked, packed, and shipped to the customer.
4. **Delivery**: The order is delivered to the customer, and a delivery note is generated.
5. **Invoicing**: An invoice is created based on the sales order and sent to the customer.
6. **Payment Collection**: The customer makes the payment as per the invoice terms.
7. **Order Closure**: The order is marked as complete once payment is received and reconciled.
Ques:- How do you plan the requirements of material which are very rarely moving and unpredictable in demand?
Right Answer:
To plan for rarely moving and unpredictable material, use a combination of safety stock, demand forecasting techniques, and inventory review methods. Implement a just-in-time (JIT) approach to minimize holding costs while ensuring availability. Regularly review and adjust inventory levels based on historical data and market trends, and consider using a vendor-managed inventory (VMI) system to optimize supply.
Ques:- What are the different types of matching such as 2 way, 3 way or 4 way and why these are required?
Right Answer:
In supply chain management, matching refers to the process of verifying and reconciling documents related to a purchase. The different types of matching are:

1. **Two-Way Matching**: Compares the purchase order and the invoice. This ensures that the goods received match what was ordered and billed.

2. **Three-Way Matching**: Compares the purchase order, the invoice, and the receiving report. This ensures that the order, the invoice, and the actual goods received are all consistent.

3. **Four-Way Matching**: Compares the purchase order, the invoice, the receiving report, and the contract or agreement. This ensures that all aspects of the transaction are aligned, including terms and conditions.

These matching processes are required to prevent discrepancies, ensure accuracy in payments, and maintain financial control within the supply chain.
Ques:- What is spend analysis and how do you use spend analysis to reduce the procurement costs and processing costs?
Right Answer:
Spend analysis is the process of collecting, categorizing, and analyzing spending data to understand purchasing patterns and identify opportunities for cost savings. To reduce procurement and processing costs, you can use spend analysis to:

1. Identify high-spending categories and suppliers.
2. Consolidate purchases to negotiate better terms and discounts.
3. Eliminate unnecessary or duplicate purchases.
4. Optimize supplier selection based on performance and pricing.
5. Develop strategic sourcing strategies to leverage volume and reduce costs.


Supply Chain Management (SCM) is a comprehensive and strategic discipline that oversees the entire network of businesses and activities involved in getting a product or service to the end customer. It is a critical function for any organization, as it coordinates and integrates every stage of the process, ensuring a seamless and efficient flow of resources, information, and funds. SCM is far more than just logistics; it is an integrated approach that connects all parties—suppliers, manufacturers, distributors, and retailers—to work in harmony.

The main components of a supply chain typically include:

  • Procurement and Sourcing: This initial phase involves the strategic selection of suppliers and the purchasing of raw materials, parts, and components. A key goal here is to secure high-quality materials at the best possible price and to build strong, reliable relationships with suppliers.
  • Manufacturing and Production: This involves the transformation of raw materials into finished goods. SCM ensures that production processes are efficient, inventory levels are optimized, and quality control standards are met to produce goods that meet customer demand.
  • Logistics and Distribution: This is the physical movement of products. It includes warehousing (storage), inventory management (tracking stock levels), and transportation (shipping products to distribution centers, retail stores, or directly to consumers). Effective logistics is essential for timely and cost-effective delivery.
  • Sales and Customer Service: The final stage of the supply chain ensures the product reaches the customer and the customer’s needs are met. Feedback from this stage is crucial, as it informs future supply chain decisions, from product design to procurement.

The primary goal of SCM is to create a competitive advantage by maximizing value for the customer while minimizing costs. A well-managed supply chain can reduce operational expenses, improve product quality, and increase speed to market. In today’s globalized and technology-driven world, SCM has become even more complex, with businesses leveraging advanced analytics, AI, and IoT (Internet of Things) to forecast demand, track shipments in real-time, and manage risks more effectively. Ultimately, a robust supply chain is the backbone of a successful business, ensuring its ability to operate profitably and deliver on its promises to the customer.

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