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36 Cards in this Set
- Front
- Back
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bullwhip
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too much/little inventory to satisfy customer needs, missed production schedules, and ineffective transportation or delivery caused by miscomm among material suppliers, manuf, and resellers of consumer and industrial goods
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logistics
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activities that focus on getting the right amount of the right products to the right place at the right time at the lowest poss cost
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logistics mgmt
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org the cost-effective flow of raw materials, in-process inventory, finished goods, and rel info from point of origin to pt of consumption to satisfy customer req.
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flow
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how move a product from raw materials to consumption
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supply chain
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seq of firms that perform activities req to create and deliver a good/service to consumers/industrial users
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supply chain mgmt
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integration and org of info and logistics activities across firms in a supply chain for the purpose of creating and delivering g/s that provide value to customers
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3 steps in aligning a supply chain w/marketing strategy
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understand the customer, understand the supply chain, harmonize the sc and marketing strategy
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electronic data interchanges (EDIs)
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combine proprietary computer and telecomm tech to exchange electronic invoices, pmts, and info among suppliers, manuf and retailers
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extranet
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web network that permits secure business2buss comm btwn a manuf and its suppliers, dist, and other partners
less $$ and more flexible |
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total logistics cost
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expenses assoc w/trans, materials handling and warehousing, inventory, stockouts, order processing and return goods handling
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total logistics cost curve is minimized where
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intersection of inventory costs and transportation costs curbes
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customer service
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ability of logistics mgmt to satisfy users in terms of time, dependability, comm, and convenience; job of sc manager is to balace these 4 factors against total logistics cost factors
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lead/order cycle/replenishment time
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lag from ordering an item until it is received and ready for use/sale
includes: recog of need to order, order transmission, processing, documentation, and trans |
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quick response
and efficient consumer response delivery systems |
ensure simplicity of reorders
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dependability
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consistency of replensihment
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3rd party logistics providers
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firms that perform most/all of the log functions that manuf, suppliers, and dist would normally
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4 key logsitic functions in a sc:
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trans, warehousing and materials handling, order processing, inventory mgmt
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5 basic modes of transportation
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train, motor, air, piplelines, water
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6 basic trans service criteria
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cost, time, capability, dependability, accessibility, freq
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rail
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full capability, extensive routes, low $$
damage prob, not always complete pickup/delivery, slow |
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truck
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complete pickup/del, extensive routes, fairly fast
size and weight restrictions, more $$, more weather sensitive |
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air
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fast, low damage, freq departures
$$, limited capabilities |
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pipeline
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low $$, very reliable, freq depart
limited routes, slow |
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water
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low $$, huge capacities
slow, limited routes and schedules, weather sensitive |
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freight fowarders
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firms that accumulate small shipments into larger lots and then hire a carrier to move them, usually at reduced rates
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storage warehouses
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goods are intended to come to rest for some pd of time
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distribution centers
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facilitate the timely movement of goods and rep a very impt part of a sc; 2nd most sig cost after transportation
facilitate sorting and consolidation |
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materials handling
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moving goods over short dist into, within, and out of warehouses and manuf plants
2 major problems: high labor costs and high rates of loss/damage |
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reasons for inventory
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buffer
provide better service production efficiencies hedge against price increases by suppliers purchasing and trans discounts protect the firm from strikes and shortages |
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capital costs
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opp costs from tying up funds in I; rel to interest rates
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inventory service costs
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insurance and taxes
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storage costs
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warehousing space and mat handling
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risk costs
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loss, damage, pilferage, perishability, and obsolescence
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Just in time concepts
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low inventories and req fast on time delivery; only good when demand forecasting is reliable
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vendor-managed inventory
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supplier det the product amoutn and assortment a customer needs and automatically delivers the appropriate items
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reverse logisitics
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reclaiming recylclable and reusable materials from the point of consumption/use for repair, remanuf, redist, or disposal
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