Ch 15 Final Review Flashcards
(22 cards)
The sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service
Supply Chain
The strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management
Supply Chain Management (SCM)
Match supply to demand as effectively as possible
Goal of supply chain management
Responsible for obtaining the materials, parts, and supplies and services needed to produce a product or provide a service.
Purchasing Department
Develop and implement purchasing plans for products and services that support operations strategies
Goal of procurement
The speed at which goods move through a supply chain
Inventory velocity
Inventory oscillations that become increasingly larger moving backward through the supply chain
Bullwhip effect
The movement of materials, service, cash, and information in a supply chain
Logistics
Overseeing the shipment of incoming and outgoing goods
Traffic management
The outsourcing of logistics management
Third party logistics (3pl)
The process of moving returned items
Reverse logistics
Screening returned goods to prevent incorrect acceptance of goods
Gatekeeping
Finding ways to minimize the number of items that are returned
Avoidance
Analyzing the procurement process to lower costs by reducing waste and non-value-added activities, increase profits, reduce risks, and improve supplier performance
Strategic sourcing
A technique whereby goods arriving at a warehouse from a supplier are unloaded from the suppliers truck and loaded onto outbound truck, thereby avoiding warehouse storage
Cross-docking
Production of standard components and subassemblies which are held until late in the process to add differentiating features
Delayed differentiation
Reducing one or more steps in a supply chain by cutting out one or more intermediaries
Disintermediation
Large lot sizes yield benefits in terms of quantity discounts and lower annual setup costs, but it increases the amount of safety stock (and inventory carrying costs) carried by suppliers
Lot size inventory trade off
Suppliers prefer to ship full truckloads instead of partial loads to spread shipping costs over as many units as possible. This leads to greater holding costs for customers
Inventory transportation cost trade off
Suppliers like to ship in full loads, but waiting for sufficient orders and/or production to achieve a full load may increase lead time
Lead time transportation costs trade off
Greater product variety usually means smaller lot sizes and higher setup costs, as well as higher transportation and inventory management costs
Product variety inventory trade off
Producing and shipping in large lots reduces costs, but increases lead time
Cost customer service trade off
