SAP S4 HANA Simple Logistics Interview Questions and Answers

Q1 : What is SAP S/4 HANA Logistics?
A : SAP S/4HANA is a next-generation business suite built on the most advanced in-memory platform. Logistics is used to handle Material Requirement Planning, Inventory Management, Material Valuation, Capacity Planning, Stock keeping, Reordering, Order Management, and Billing, Procurement to help businesses.

Q2 : What are the different Sap S/4hana Simple Logistics Deployment types?
A : On-premise, Cloud and Hybrid solutions are the three different SAP S/4HANA Simple Logistics deployment types.

Q3 : What are APS, ASN, and ASRS?
A
: APS: It stands for Advance Planning and Scheduling
ASN: It stands for Advanced Shipment Notifications
ASRS: Automated Storage and Retrieval Systems

Q4 : What is the master data in SAP?
A : Data stored  is generally categorized as

  • Master Data
  • Transactional Data.

Master data is the important data that is used as a base for all transaction in the database. For any kind of activity such as creating, storing, producing, transferring, purchasing, which involves data requires certain master data. Transactional data are based on daily activities performed.

Q5 : What are the key benefits of Sap Integrated Business Planning?
A : The following are the key benefits of SAP Integrated Business Planning:

  • End-to-end supply chain visibility
  • Unified, integrated, and cross-departmental planning approach
  • Simple and easy-to-use user interface
  • Advanced demand sensing, analysis, and predictive forecasting
  • Embedded social collaboration and MS Excel-based planning

Q6 : Explain what is an Anti-Dumping duty?
A
: Anti-dumping duty is an import duty levied in cases where imported goods are priced at less than the normal price in the exporter’s domestic market and cause material loss to the domestic industry of the importing country.

Q7 : What are the types of Sap S/4 Hana users?
A : The different types of SAP S/4 HANA Users are:

  • Occasional − These users types occasionally use the system and need simple and easy-to-use applications.
  • Expert − These users type is a fully trained SAP user who knows the system effectively and uses multiple systems and different UIs.
  • Developer − These users are responsible for adaption and extension of existing applications. These users have to access several applications with different user interfaces.

Q8 : What are the different types of Compression Methods in SAP?
A :

  • Prefix encoding (PREFIXED)
  • Run length encoding (RLE)
  • Custer encoding (CLUSTERED)
  • Sparse encoding (SPARSE)
  • Indirect encoding (INDIRECT)

Q9 : What is the different position a person can work in the logistics industry?
A
: A person can work under various positions:

  • Logistic Director
  • Logistic Supervisor
  • Logistic Associate
  • Logistic Engineer
  • Logistic Coordinator
  • Logistic Specialist
  • Logistic Analyst

Q10 :  What is supply chain management?
A : Supply chain management includes an integrated approach of planning, implementing and controlling the flow of information, materials, and service from raw material to the finished good for the ultimate distribution to the customer.

Q11 :  Explain what is the difference between logistics and transport?
A : The difference between logistics and transport is:

  • Logistics: Logistics is referred to as the procedure of managing goods, resources, and information from the source to the consumers in a manner that it fits the requirements of both parties.
  • Transportation: Transport is the movement of the goods from one point to the other. It is considered as part of logistics.

Q12 : What is meant by Reverse Logistics?
A : Reverse Logistics is the collection of all processes that come into play for goods that move in the reverse directions which means transportation of goods customer to the business.

Q13 : What is WTS (Warehouse Tracking System)? How does it work?
A :
WTS or Warehouse Tracking System is a software application which is specifically designed for the warehouse industry. It uses the system of barcode labels which allows you to track product movement, audits and shipments easily.  It enables you to identify each piece of stock by a unique serial number.

Q14 : What are The Mrp Procedures In Sap Simple Logistics?
A : In MRP Procedure, you define MRP type in material master. MRP type determines how the material is planned. MRP is performed based on the present and future sales figures, and planned and exact requirement quantities calculate net requirement calculations.
Following MRP types are available:

  • Manual reorder point planning
  • Automatic reorder point planning
  • Forecast-based planning
  • Material requirements planning with forecasts for unplanned consumption
  • Master Production Scheduling (MPS)

Consumption-based planning is based on historical consumption values and either uses forecasting or statistical procedures to determine future requirements or just triggers procurement, if the material stock gets low.
For MRP material, normally high value A parts are considered, and the quantity and the desired delivery are the main interest areas. You use Consumption based planning for less critical low value parts B and C.
Manual reorder point planning is the most common type of consumption based planning and involves minimal administrative work to perform this planning. In this planning, the system sets a manually entered reorder point and at the time of planning run it only checks whether the stock has fallen below this reorder point. When the stock is less than this manually entered reorder point, the system triggers procurement to be performed for a fixed lot size.
The Following MRP Procedures are supported in consumption based planning −

  • Reorder Point Planning
  • Forecast-Based Planning
  • Time-Phased Planning

Q15 : What are the types of SAP S/4HANA Users?
A
: The different types of SAP S/4HANA Users are:

  • Occasional − These users types occasionally use the system and need simple and easy-to-use applications.
  • Expert − These users type is a fully trained SAP user who knows the system effectively and uses multiple systems and different UIs.
  • Developer − These users are responsible for adaption and extension of existing applications. These users have to access several applications with different user interfaces.

Q16 : What is BRF plus?
A : Business Rule Framework plus (BRFplus) provides a comprehensive application programming interface (API) and user interface (UI) for defining and processing business rules. It allows you to model rules in an intuitive way and to reuse these rules in different applications. BRFplus supports features such as simulation, trace, transport, XML export and import.

Q17 : What are the deployment types in SAP S/4HANA Simple Logistics?
A :
SAP S/4 HANA provides various deployment models such as On Premise, Cloud and Hybrid solution. When you deploy S/4 HANA system in the cloud deployment scenario, data replication is performed using the same mechanisms that are used in on-premise installations – SLT. To perform data replication via SLT, SLT portions will have to be available on both the sending (On-premise) and the receiving system (Cloud).
Non-SAP reporting and analytics and additional SAP Simple Finance or partner products need to be connected to the cloud instance or be made available within the cloud installation as required.

  • On-Premise Solution – In On-premise deployment model, the customer purchases software and hardware; the operations are managed by the customer itself. All the deployment, implementation and maintenance tasks are performed by the customer. Any new software extensions are handled by on-premise support team.
  • Cloud Solution – In this deployment, hardware and software is provided by the cloud solution provider and it is rented to the customer. The cloud service provider is responsible for performing all the updates, extensions, and new implementations.
  • Hybrid Solution – In this deployment scenario, some part of the software is run by the client on-premise server owned by the client, and additional solution is provided by the client provider. You need to perform integration between on-premise and cloud environment for better service.

Q18 : What is Lean Manufacturing?
A : Lean manufacturing includes a set of principles that firms use to achieve improvements in productivity, profitability, quality, and lead-time without sacrificing productivity by eliminating waste through kaizen.

Q19 : What is activity based costing?
A
: It is a method which helps in the breakdown of the costs into specific activities in order to maintenance of accuracy in the distribution of costs in product costing.
Q20 : What are the main Supply Chain Challenges Companies faces today?
A : The five big challenges that companies face today is,

  • Ignoring the continued growth of e-commerce as a channel in the industrial sector
  • No attention to the potential risk like volatile transportation costs
  • Over expectation that supply chain management technologies will fix everything
  • Over-reliance on past performance to predict future sales
  • Increase complexity added to supply chain operations with an implementation of unnecessary technologies
  • Lack of understanding of the full capacities of suppliers and service

Q21 : What are MPS in ERP and MRP in SAP?
A : A master production schedule (MPS) is a plan for individual commodities to be produced in each time period such as production, staffing, inventory, etc.. MRP is a part of MPS which is used to determine how the materials procurement are planned. MRP is performed based on the sales of present and future,where in they are used to plan the requirement quantities for production.

Q22 : What is Demand Planning?
A : The company can use demand planning to forecast the demand for specific customers, regions, or sales organizations. It is used to avoid stock outs, loss sales and proper reordering can be done. Also in case of seasonal demands, it can be predicted earlier for stockpiling.

Q23 : What is inventory management in SAP S/4?
A : Inventory and warehouse management solutions from SAP enable companies to holistically control goods movements and warehouse operations, from inbound activities to fulfillment, in real time. By integrating real-time data from manufacturing planning, plant maintenance, inventory, and other enterprise resource planning processes, companies can efficiently manage procurement and order processing.

Q24 : What are the areas should be focused more in order to improve warehouse transportation?
A
: The areas should be focused more in order to improve warehouse transportation are:

  • Delivery Frequency
  • Turnaround Times
  • Journey Times
  • Fixed Routing
  • Unification of product
  • Performance standard
  • Vehicle fill
  • Scheduling
  • Vehicle and operational records
  • Preloading

Q25 : What are the responsibilities of a logistician?
A
: The Primary role of a logistician is to:

  • Manage the supply chain
  • Transportation and storage of material
  • Transportation management