Ch. 9 Supply Chain

Question 1

ABC Slotting

Answer 1

Warehouse items with a high number of orders over a time period are grouped together and located in zone A, slow moving items are in zone C, and the rest are in zone B.

Question 2

Assemble-to-order (ATO)

Answer 2

Producing a large variety of products after customer orders are received from few standardized subassemblies and components which are held in inventory.

Question 3

Automated Storage and Retrieval System

Answer 3

A computer-controlled system for automatically placing and retrieving loads from defined storage locations.

Question 4

Avoidance

Answer 4

Preventing returns by dealing with their causes.

Question 5

Bill of Landing

Answer 5

A transport contract that provides a detailed list of a shipment of goods and all information the carrier needs, issued by a carrier to a shipper.

Question 6

Bullwhip Affect

Answer 6

Demand/order variability gets progressively larger the further back in a supply chain the company is.

Question 7

Closed Loop Supply-chain

Answer 7

A manufacturer controls both the forward and reverse shipment of product.

Question 8

Collaborative planning, forecasting, and replenishment (CPFR)

Answer 8

A process for communicating and agreeing on forecasts and orders between the manufacturer and the customer (distributor/retailer).

Question 9

Consolidation

Answer 9

Combining the various small shipments into a larger shipment.

Question 10

Cross Docking

Answer 10

Loading goods arriving at a warehouse/DC from a supplier directly onto outbound trucks, thereby avoiding warehouse/DC storage.

Question 11

Decentralized Purchasing

Answer 11

Individual departments or separate locations handle their own purchasing requirements.

Question 12

Deconsolidation

Answer 12

Splitting a large batch of received items from a specific source into various small shipments to be delivered to several manufacturers/retailers.

Question 13

Delayed Differentiation

Answer 13

Waiting until late in the process to add differentiating features to standard components and products.

Question 14

Distribution requirements planning (DRP)

Answer 14

Starts with the forecast demand at the end of the distribution network (retail stores), and works backward through the network to obtain time-phased replenishment schedules for moving goods from the factory through each level of the distribution network.

Question 15

Disintermediation

Answer 15

Reducing one or more steps in a supply chain by cutting out one or more intermediaries.

Question 16

Ecommerce

Answer 16

The use of computers and the Internet to conduct buying and selling activities.

Question 17

Efficient Consumer Response

Answer 17

An expanded version of quick response, used in the grocery industry, which includes further collaboration.

Question 18

Electronic Data Interchange

Answer 18

The direct transmission of interorganizational transactions and information, computer-to-computer, including purchase orders, sales data, advance shipping notices, invoices, and engineering drawings.

Question 19

Engineer To Order

Answer 19

Products are designed and built according to customer specifications.

Question 20

Gate Keeping

Answer 20

Screening returned goods at the point of entry into the system to prevent inappropriate acceptance of goods.

Question 21

Intermodal Transportation

Answer 21

Using a combination of two or more transportation modes to transport goods.

Question 22

Inventory Optimization

Answer 22

A method that determines the location and optimal level of inventory in the supply chain.

Question 23

Logistics

Answer 23

The movement and warehousing of materials/products and information.

Question 24

Multi-echelon supply chain

Answer 24

A supply chain with multiple levels or stages.

Question 25

Order Fulfillment

Answer 25

Involves order processing, scheduling, inventory management, warehousing, packaging, billing, and delivery.

Question 26

Quick Response

Answer 26

Just-in-time replenishment system used in retailing where orders are based on actual sales, not periodic orders by retailers.

Question 27

Radio Frequency Identification

Answer 27

A technology that uses radio waves to identify objects such as goods in a supply chain.

Question 28

Resilience

Answer 28

The ability of a business to recover from an event that negatively impacts the supply chain.

Question 29

Reverse Logistics

Answer 29

Backward flow of goods returned by consumers or retailers.

Question 30

Risk Pooling

Answer 30

Holding (safety) stocks in one central location rather than in multiple locations.

Question 31

Spending Analysis

Answer 31

Collecting, cleansing, classifying, and analyzing expenditure data with the purpose of reducing procurement costs, improving efficiency, and monitoring compliance with purchasing policies.

Question 32

Stock Keeping Unit

Answer 32

A warehousing item that is unique and must be stored and accounted for separately from other items.

Question 33

Strategic Partnering

Answer 33

Two or more business organizations that have complementary products or services join so that each may realize a strategic benefit.

Question 34

Supplier Analysis

Answer 34

Evaluating a supplier in terms of factors such as price, quality, delivery, and service.

Question 35

Supply Chain

Answer 35

Sequence of organizations—their facilities and activities—that are involved in producing and delivering a product.

Question 36

Supply Chain Management

Answer 36

Collaboration of supply chain companies and coordination of their activities so that market demand is met as efficiently and effectively as possible.

Question 37

Supply Chain visibility

Answer 37

A member can connect to any part of the supply chain to access data in real time.

Question 38

Third Party Logistics

Answer 38

The outsourcing of logistics management.

Question 39

Traffic Management

Answer 39

nvolved in planning and overseeing the delivery of incoming and outgoing goods.

Question 40

Value-added Services

Answer 40

Adding features and configurations to the product in a warehouse or distribution centre to match a specific retailer/customer order and increase values for customers.

Question 41

Value Analysis

Answer 41

Examination of the function and design of a part/product in an effort to reduce its cost.

Question 42

Vendor-managed Inventory

Answer 42

An agreement in which the supplier has access to the customer’s inventory and is responsible for maintaining the inventory levels required by the customer.

Question 43

Warehouse Management System

Answer 43

A computer software that controls the movement and storage of materials within a warehouse, and processes the associated transactions.

Question 44

Warehouse Slotting

Answer 44

The process of organizing, grouping, andplacing products within thewarehousestorage.