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23 Cards in this Set
- Front
- Back
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What is a supply chain
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A Supply Chain is the sequence of
organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service. aka value chain |
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What is Supply Chain Management (SCM)
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a set
of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements |
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what is Strategic sourcing:
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the development
and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business |
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past name for sourcing?
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purchasing
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In strategic sourcing,
Specificity is: |
refers to how common the item is
and, in a relative sense, how many substitutes might be available Commonly available products can be purchased using a relatively simple process |
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In strategic sourcing,
request for proposal (RFP) |
is used for
purchasing items that are more complex or expensive and where there may be a number of potential vendors |
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In strategic sourcing
Vendor managed inventory is: |
when a
customer actually allows the supplier to manage an item or group of items for them |
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Bullwhip effect:
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phenomenon of
variability magnification as we move from the customer to the producer in the supply chain |
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What do "Functional products" include
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include the staples
that people buy in a wide range of retail outlets, such as grocery stores and gas stations |
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List the 5 aspects of functional products
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Product life cycle of more than two years
Contribution margin of 5 to 20 percent Only 10 to 20 product variations An average forecast error of only 10 percent Lead time for make-to-order products from six months to one year |
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Types of Supply Chain Strategies:
define: Efficient supply chains: |
utilize strategies
aimed at creating the highest cost efficiency |
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Types of Supply Chain Strategies,
define Risk-hedging supply chains |
utilize strategies
aimed at pooling and sharing resources in a supply chain to share risk |
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Types of Supply Chain Strategies,
define: Responsive supply chains |
utilize strategies
aimed at being responsive and flexible |
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Types of Supply Chain Strategies,
define: Agile supply chains |
utilize strategies aimed
at being responsive and flexible to customer needs |
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define "Outsourcing:"
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the act of moving a firm’s
internal activities and decision responsibility to outside providers |
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define : Logistics:
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the management functions that
support the complete cycle of material flow |
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In logistics,
what does an "emphasis on lean inventory" mean |
there is less room for
delivery errors |
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describe "Design for logistics"
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incorporates the
logistics aspects of the final product into its design phase Better control of logistics costs and increase customer service level. Economic packaging and transportation Concurrent and parallel processing Standardization. Example IKEA |
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Define Total cost of ownership (TCO):
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an
estimate of the cost of an item that includes all the costs related to the procurement and use of an item, including any related costs in disposing of the item Can be applied to internal costs or more broadly to costs throughout the supply chain |
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define Inventory turnover:
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how often
inventory is replaced during the year |
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define: Cost of goods sold
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the annual cost for a
company to produce the goods or services provided to customers |
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define: Average aggregate inventory value
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the
total value of all items held in inventory |
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define: Weeks of supply
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how many weeks’
worth of inventory is in the system at a particular point in time |
