Chapter 15: Supply Chain Management

Question 1

Purchasing Cycle

Answer 1

Series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition

Question 2

Centralized Purchasing

Answer 2

Purchasing is handled by one special department

Question 3

Decentralized Purchasing

Answer 3

Individual departments or separate locations handle their own purchasing requirements

Question 4

Vendor Analysis

Answer 4

Evaluating the sources of supply in terms of price, quality, reputation, and service

Question 5

Strategic Partnering

Answer 5

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

Question 6

Inventory Velocity

Answer 6

The speed at which goods move through a supply chain

Question 7

Bullwhip Effect

Answer 7

Inventory oscillations become progressively larger looking backwards through the supply chain

Question 8

Vendor-managed Inventory

Answer 8

Vendors monitor goods and replenish retail inventories when supplies are low

Question 9

Order Fulfillment

Answer 9

The process involved in responding to customer orders

Question 10

Logistics

Answer 10

The movement of materials, services, cash and information in a supply chain

Question 11

Traffic Management

Answer 11

Over-seeing the shipment of incoming and outgoing goods

Question 12

Radio Frequency Identification (RFID)

Answer 12

A technology that uses radio waves to identify objects, such as goods in supply chains

Question 13

Engineer-to-Order

Answer 13

Products are designed and built according to customer specifications

Question 14

Make-to-Order

Answer 14

A standard product design is used, but production of the final product is linked to the final customer’s specifications

Question 15

Assemble-to-Order

Answer 15

Products are assembled to customer specifications from a stock of standard and modular components I.e. Dell

Question 16

Make-to-Stock

Answer 16

Production is based on forecast, and products are sold to the customer from finished goods

Question 17

Cross Dock

Answer 17

A full inbound pallet is redirected to an outbound shipment

Question 18

Cross Distribution

Answer 18

An inbound pallet is broken down into cases right on the dock, and then the cases are immediately distributed to outbound pallets

Question 19

Vendor-Management Inventory

Answer 19

Vendors of some non-store brand items such as bread and soft drinks handle replenishment, and those items come directly from the vendor’s warehouse to the stores

Question 20

Block Pick

Answer 20

An entire pallet of goods int he warehouse is placed on an outbound truck

Question 21

Case Pick

Answer 21

Individual cases or packages are pulled from inventory, placed on pallets and shrink wrapped, and then placed on outbound trucks

Question 22

Third-Party Logistics (3-PL)

Answer 22

The outsourcing of logistics management

Question 23

Strategic Sourcing

Answer 23

Analyzing the procurement process to lower costs by reducing waste and non-value-added activities, increase profits, reduce risks, and improve supplier performance

Question 24

Supply Chain Visibility

Answer 24

A major trading partner can connect to its supply chain to access data in real time

Question 25

Event Management

Answer 25

The ability to detect and respond to unplanned events

Question 26

Fill Rate

Answer 26

The percentage of demand filled from stick on hand

Question 27

Reverse Logistics

Answer 27

The process of transporting returned items

Question 28

Gatekeeping

Answer 28

Screening returned goods to prevent incorrect acceptance of goods

Question 29

Avoidance

Answer 29

Finding ways to minimize the number of items that are returned

Question 30

Closed-loop Supply Chain

Answer 30

A manufacturers controls both the forward and reverse shipment of product

Question 31

Cross-docking

Answer 31

A technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded onto outbound trucks, thereby avoiding warehouse storage

Question 32

Delayed Differentiation

Answer 32

Production of standard components and subassemblies, which are held until late in the process to add differentiating features

Question 33

Disintermediation

Answer 33

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