Chapter 12 Supply Chain Integration

Question 1

Bullwhip effect

Answer 1

The phenomenon in supply chains whereby ordering patterns experience increasing variance as you proceed upstream in the chain

Question 2

SCOR model (supply chain operations reference)

Answer 2

A basic supply chain framework of plan, source, make, deliver, and return processes

Question 3

Concurrent engineering

Answer 3

A concept that brings product engineers, process engineers, marketers, buyers, information specialists, quality specialists, and suppliers together to design a product and the processes that will meet customer expectations

Question 4

Purchasing

Answer 4

The activity that decides which suppliers to use, negotiates contracts, and determines whether to buy locally

Question 5

Green purchasing

Answer 5

The process of identifying, assessing, and managing the flow of environmental waste and finding ways to reduce it and minimize its impact on the environment

Question 6

Early supplier involvement

Answer 6

A program that includes suppliers in the design phase of a service or product

Question 7

Pre sourcing

Answer 7

A level of supplier involvement in which suppliers are selected early in a product’s concept development stage and are given significant, if not total, responsibility for the design of certain components or systems of the product

Question 8

Value analysis

Answer 8

A systematic effort to reduce the cost or improve the performance of services or products, either purchased or produced

Question 9

Competitive orientation

Answer 9

A supplier relation that views negotiations between buyer and seller as a zero sum game

Question 10

Cooperative orientation

Answer 10

A supplier relation in which the buyer and seller are partners, each helping another as much as possible

Question 11

Sole sourcing

Answer 11

The awarding of a contract for a service or item to only one supplier

Question 12

EDI electronic data interchange

Answer 12

A technology that enables the transmission of routine business documents having a standard format from computer to computer over telephone or direct leased lines

Question 13

Catalog hubs

Answer 13

A system whereby suppliers post their catalog of items on the Internet and buyers select what they need and purchase them electronically

Question 14

Exchange

Answer 14

An electronic marketplace where buying firms and selling firms come together to do business

Question 15

Auction

Answer 15

A marketplace where firms place competitive bids to buy something

Question 16

RFID radio frequency identification

Answer 16

A method of identifying items through the use of radio signals from a tag attached to an item

Question 17

Vendor managed inventories VMI

Answer 17

A system in which the supplier has access to the customer’s inventory data and is responsible for maintaining the inventory on the customer’s site

Question 18

Supply chain integration

Answer 18

The effective coordination of supply chain processes through the seamless flow of information up and down the supply chain