The IOS image and configuration are generally stored on the supervisor card (and also on backup supervisor card if that's being used).
(You can set a boot variable to boot from a network-based image using tftp but I've seldom seen that used except in rare troubleshooting cases.)
So, in the event of chassis failure the process you noted is the one to follow.
In the event of supervisor failure (and not having a secondary supervisor in standby mode) you will indeed lose all connectivity and configuration. Replacement supervisor (if provided under RMA) should already have a current IOS but if you want to change to a specific version that would be your responsibility. Restoring the configuration from backup would also be your responsibility.
The linked document you referenced is correct with respect to necessary licensing steps.
If the replacement sup (exact same model) is a spare unit from our head office that had been used in another retired chassis(same model), will it work if i just swap it if the exisitng unit failed without going through the license activation process again?
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