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An organization’s supply chain is managed using SAP SCM, a software platform provided by SAP AG. An organization’s supply chain can be planned, networked, and executed with the help of SCM. As a result, most leading companies around the world use SAP SCM to manage their supply chains seamlessly, and effectively, thereby gaining a competitive advantage in the market. SAP stands for “Systems Applications and Products in Data Processing”. Technology, software, and ERP systems are important to business applications. 

This blog contains SAP SCM  Interview Questions and Answers that have been specially crafted for freshers also for experienced. 

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Question 1. How would you define Supply Chain Management?

Answer: SAP Supply Chain Management, one of the key modules in SAP ERP, manages production planning, forecasting, business and demand planning, and helps organizations manage their supply chains in a dynamic environment. (This is important SAP SCM  Interview Questions and Answers)

Question 2. Which stakeholders play a role in Supply chain management?

Answer:  The SAP SCM process connects suppliers, customers, manufacturers, business partners, and retailers to manage supply chain processes effectively and efficiently.

Question 3. In the course of your supply chain process, were you able to use any of the following applications?

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Answer:  As for SAP applications, the main ones are SAP General Areas, SAP Supply Network Collaboration SNC, SAP Extended Warehouse Management EWM, Advanced Planning and Optimization (APO), Forecasting, and Replenishment FRE, and SAP Transportation Management TM.

Question 4. According to functionality, what are the different components within SAP SCM?

Answer: Forecasting

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To Use Customer Relationship Management (CRM) to get data related to customer campaigns, etc., to perform demand planning and forecasting.

SNP – Supply Network Planning

To An organization can be viewed as a network of locations, and stock projections can be checked. SNP calculates dependent requirements down to supplying locations, production, and receiving stores.

Planned and detailed scheduling of production

The objective is to check the dependent requirements from supply network locations, as reported by SNP in conjunction with Material Requirements Planning Production During planning, the inbound materials required for a production order are determined. (This is important SAP SCM  Interview Questions and Answers)

Question 5. How are Supply Chain Collaboration and Supply Chain Coordination different?

Answer: SC Collaboration

Forecasts and agreements can be made using this information.

Coordination of the SC

In Supply Chain, this component coordinates the exchange of data and information between different business units.

Question 6. Why should organizations use Supply Chain processes?

Answer: Having a distributed environment provides organizations with the following benefits

  • By using a SCM process, accounts receivable collections will be reduced, as will aging and extensions of credit, as well as days’ sales outstanding.
  • Managing forecasting and managing sudden changes in demand and supply.
  • Plants and equipment are examples of Net Fixed Assets NFA that can be effectively used.
  • An organization can manage the Supply chain Management process smartly to meet customer demands.
  • All stakeholders across the network are informed of the key information.
  • An organization’s demand and supply processes are managed better with improved communication and collaboration between different business units.
  • Reduce the cost of goods sold by improving production efficiency and reducing quality issues.
  • Increasing rebates and incentives and reducing transportation duties and taxes. Reducing transportation errors is another benefit.

Question 7. What are the steps you have taken as part of your Supply Chain management responsibilities?

Answer: Planning, forecasting, and managing the demand for goods are all aspects of demand management. It has defined processes and capabilities to produce goods. Demand planning is improved by using this component. promotions.

each customer, and thus see customer response to change in pricing policies, and profit for a particular product within the organization.

Consumers’ reactions to price changes can be predicted using demand models. Depending on your organization’s goals like increasing profit, revenue, etc., you can define product selling strategies. (This is important SAP SCM  Interview Questions and Answers)

Question 8. Planned Independent Requirement stands for what?

Answer: PIRs are used for demand management. Independent requirements provide input for production planning. PIRs contain one planned quantity of product and one date for material or a Planned Quantity spans several time periods.

Question 9. What are MTS and MTO Planning strategies?

Answer: Make to Stock Planning strategy (MTS)

Stock is produced without a sales order in this planning strategy. Future customer orders are met with this stock.

The Make to Order (MTO) planning strategy

In Under this plan, you don’t produce finished products until a customer orders them. Sales orders are your only consideration under MRP.

In As part of the MTO strategy, you only produce sales order stock and deliver products in accordance with customer sales orders.

Question 10. When performing MTS and MTO, what planning strategy do you use?

Answer: Using Planning strategy 10, only PIR quantities are considered for MRP runs, and sales orders are completely ignored. If you deliver stock to the customer, this PIR requirement is reduced.

You can consider a maximum of 2 PIR and Sales orders when using Planning strategy 40 and PIR is reduced when entering Sales orders. When a customer requests a variant product, Planning strategy 25 is used to produce the variant product. (This is important SAP SCM  Interview Questions and Answers)

Question 11. Why is MRP run or planning run important?

Answer: MRP runs or planning runs help close the gap between demand and supply. A MRP element is an issue and a receipt. PIRs, Dependent Requirements, Order Reservations, Sales Orders, and Stock Transfer Orders are among the items to be addressed. Production Orders, Purchase Requisitions, and Purchase Orders comprise receipts Orders, Open Production Orders, Receiving Stock Transfer Order, Schedule lines, etc.

Question 12. How do MRP runs differ?

Answer: NetChange

Material that has changed since the last MRP run is considered for this run system.

Changing the planning horizon for the network

Unlike net change, which considers future requirements, this run considers the requirements within the predefined planning horizon.

During, this run, the system considers only those materials that have undergone some changes since their last MRP.

Planning for regenerative growth

In this run, the system considers all the material regardless of any changes. This is time-consuming and not common in production planning.

Question 13. How does lead time scheduling differ from basic scheduling?

Answer: Basic Scheduling

It Calculates only the basic dates of orders in MRP runs and the time spent on production for the material master being used.

Scheduling with a lead time

Production dates are determined by lead time scheduling for planned orders in this MRP.

Question 14. What does master data on Bill of Material contain?

Answer: Bills of material master data are related to material requirement planning and provide the list of components for a product.

Question 15. What is a super BOM?

Answer: To create a product that has different variants, you can create a super bill of material that contains a list of components to make the different variants of a product, and that depends on the details included in the planning order. Bills of Material can be created up to 99 times.

Question 16. When transferring data between SAP ERP and SCM, what steps do you take?

Answer: You need to define an integration model to move master and transaction data from ERP systems to SCM systems. An integration model is automatically updated each time you create it.

Question 17. Can more than one version of the integration model be active at once?

Answer:  There is no limit to the number of versions of an integration model, but only one version is active at any given time.

Question 18. What does Good Issue Process mean? How do Goods Issues move?

Answer:  Goods issue occurs when raw materials are consumed to produce material as per Production orders. In the Production Planning system, the inventory of components at the storage location decreases when goods are issued.

Goods are issued using movement type 261.

Question 19. When dealing with a cancelled order in SCM, how do you handle the cancellation issue?

Answer: When you cancel the goods issue of an order, you use the goods issue reversal option. It is possible to cancel an order issue until the CNF status has been confirmed in the system.

Goods issue reversal movement type 262.

To Use T-code MB1A to reverse goods issue or go to Logistics → Production → Production Control → Goods Movement → Goods Issue

Question 20. How do you create planned orders? How do you convert planned orders to production orders?

Answer: You can initiate the procurement of material with a certain quantity during the planning run for a plant in the SAP system.

When a shortage of materials is detected, planned orders are created, and you can convert them to production orders by using the T-Code: CO40/CO41. (This is important SAP SCM  Interview Questions and Answers)

Question 21. How can a Planned Order be created manually?

Answer: You can create a planned order manually using T-Code: MD11.

What is the best way to evaluate MRP run in the SCM system?

This is used to view current stock and upcoming receipts. Use T-code: MD04

Question 22. What is a Material Requirement Plan MRP list?

Answer: MRP lists are used to generate static reports containing material-by-material planning and it displays time of MRP run at the top.

Question 23. What is Production Order?

Answer: A Production order specifies the material to be produced, the plant location where it must take place, the date and time of production, and the quantity of goods to be manufactured. Production orders also specify which components and sequence of operations are to be used and how order costs are to be settled.

How do you get the details of the component list and operational data of a production order when you create it?

Materials’ BOM and routing information is copied into the Production order, which determines the list of components and operational data in the order. (This is important SAP SCM  Interview Questions and Answers)

Question 24. How does a planned order become a production order?

Answer: Creating a production order from a planned order is the first step. In SAP PP, type is defined when you create a Production Order.

To begin the production process, it is necessary to issue a Production Order. Production cannot begin until a production order has been released.

To execute the Production order, it is necessary to issue goods. Once goods are issued, document numbers can be updated in the system.

In accordance with the production order, all sub-processes are executed according to their requirements. (This is important SAP SCM  Interview Questions and Answers)

Question 25. When creating an integration model, what happens if you don’t select a restriction?

Answer: If you select execute without selecting a restriction, you’re prompted that it will take a long time to complete.

Is it true that, when an integration model is deactivated, it deletes all objects that were transferred to the SCM system?

Deactivating an integration model does not mean that all objects transferred will be deleted from the SCM.

Question 26. What is the production type of BOM?

Answer: 1

Question 27. What are the most common types of Supply Chain master data?

Answer:

  • BOM
  • Center for Work
  • Master Material
  • Routes

Question 28. In the Supply Chain Management process, how are master data routes utilized?

Answer: Routing determines the sequence of activities performed at a work center. Routing plays a critical role in calculating production cost, machine time, and labor time.

Question 29. With respect to Supply Chain Management Process, what is the purpose of Work Center in an ERP system?

Answer: As a result, you have the relevant work center in ERP for each resource field in SAP APO/SCM. (This is important SAP SCM  Interview Questions and Answers)

Question 30. In SAP Supply Chain, what are the different resource types?

Answer: As per the planning parameters, resource types define how the system plans resources. Every resource type has its own planning parameters. Following resource types are created automatically when you transfer work centers from an ERP system

  • Multi-Activity and Single-Activity Resources
  • Resources that are single-mixed and multi-mixed
  • Resource Line

Resources for single activities and multi activities

In It is possible to do one activity at a time with this resource. With the multi-activity resource, several activities can be performed simultaneously.

Resources that are single-mixed and multi-mixed

In With SAP SCM, both Production Planning SAP PP and Detailed Scheduling are performed by mixed resources.

Single mixed resources are defined as single activity resources in production planning PP and detailed scheduling DS, and multi-mixed resources allow multi-activity resources.

Resource Line

It Work time and line rates are defined. For each DI line, a resource is created in APO.

  • Resources for vehicles
  • Resource for buckets
  • Transport Resource

Overview of the SAP SCM course

Keeping your skills up-to-date is a necessity in the IT industry if you want to advance to a senior position. Nowadays, SAP skills are indispensable.

Aside from educational qualifications, many organizations hire employees based on the additional certifications they hold, and their familiarity with the latest technologies. 

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Henry Harvin Education is one of the many educational institutions offering SAP courses. Henry Harvin has over 100 online and classroom courses available worldwide. This institute has received certification from UKAF, UK Cert, American Association of EFL, MSME, and Project Management Institute (PMI).

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In addition to the latest lab tools, Henry Harvin’s courses follow the latest industry standards. By Trainings 360, Henry Harvin’s Certified SAP Certification Training is ranked among the top 3 courses in the industry.

You will be eligible for a Gold Membership after enrolling in the SAP course. This membership will provide you with the following benefits:

  • For those who missed a live session, recorded videos are available for you to view.
  • We will give you practice assignments during this session upgrade your skill sets.
  • From experts, you can also learn how to attend and clear Interviews with no fear. Confidence will definitely increase.
  • Through brushing up on the concepts and discussing them with subject experts, Henry Harvin conducts boot camps to clear your doubts.
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Summary

Thank you for going through SAP SCM  Interview Questions and Answers. There are a lot of opportunities in different technologies within the IT industry, which is one of the booming sectors. Recruiters today are looking for employees who are up-to-date with the latest technology or who are ready to upgrade themselves.

So It is better to upgrade yourself if you are working in IT, so that you can move up to your higher designation with ease. You can easily upgrade your skills by taking SAP courses online without having to interrupt your working day. Adding that to your resume will bolster your career prospects and make you more attractive to prospective employers.

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9 Comments

  1. An organization’s supply chain management is very important and this informative blog which has has the most essential 30 best Interview questions and answers of SAP SCM required to crack any interview. Thank your for creating such a relevant blog which has been very beneficial to me.

  2. Sumeet Kumar Reply

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  3. Revising the questions mentioned above will be enough for appearing in the SAP SCM interview.

  4. Ashutosh Verma Reply

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  9. Khushi Sinha Reply

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