exam 1 Flashcards
(35 cards)
Definition of supply chain
sequence of activities and organizations involved in producing good and services.
suppliers->manufacturer->distributor->customers
Definition of supply chain management
strategic coordination of the supply chain to integrate supply and demand management
Goal of supply chain management
match supply and demand as effectively and efficiently as possible
supply chain management trade-offs. large vs small lot sizes(inventory).
large vs small lot sizes(inventory).
Large ->quantity discount, lower stock out risk but larger holding costs
Small ->lower holding cost but higher risk of stock out
societal issues impacting supply chains
GDP. Globalization. sustainability. infrastructure. regulatory issues. security and risk
business-related issues impacting supply chains
customer service and satisfaction. servise-after-the-sale. product returns. human resources
definition of logistics
part of a supply chain involved with the forward and reverse flow of goods,services,cash and information
definition of logistics management
managing the movement of material, services, cash and information in a supply chain
balanced scorecard
revolves around strategy.
financial performance -> internal business process -> education and learning -> customer service
Perrito law
concintrate on the few customers that give most sales while not sacrificing the majority; since few customers contribute to the most profits
key performance indicators (KPIs)
demand forecast accuracy. perfect order fulfillment. supply chain management cost
Gap Analysis
gap = service - requirement
positive: higher service than expected
negative vise versa
product life cycle
introduction -> growth -> maturity -> decline
perfect order fulfillment
is apart of KPI’s. optimization of customer satisfaction through scm
Customer sevics vs satisfaction
Components of customer service
After sale support
omnichannel
marketing->communications->store->customer service-> social media->ecomerce->email-> notifications. merging online and instore warehouse and fulfillment merging sales and operations
goal of customer relationship managment
improve relationship. increased sales
stockout meaning
selling out all items
purchasing duties
identifying sources of supplies.
negotiating contracts.
maintain datatbase of suppliers.
obtaining goods/services.
manage suppliers.
the purchasing cycle
getting order information -> supplier selection. -> order placement. ->monitor orders.-> receive order
centralized purchasing
one department handels all purchasing. advantages are lower price since one section is buying big amount. the department will become very skilled at purchasing
decentralized purchasing
different departments do their own purchasing. advantages:lower transportation cost if buying locally/ quicker response
