Mgt 317

Front 1

Economic Utility (p4)

Back 1

the value or usefulness of a product in fulfilling customer needs or wants

Front 2

Name 4 types of Economic Utility (p 4)

Back 2

Possession, Form, time, and place

Front 3

CSCMP's definition of logistics (p 6)

Back 3

"Logistics is that part of the supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow of storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements."

Front 4

Mass logistics (p 7)

Back 4

Every customer gets the same type and levels of logistics service

Front 5

Tailored logistics (p 7)

Back 5

Groups of customers with similar logistical needs and wants are provided with logistics service appropriate to these needs and wants.

Front 6

Market demassification (p 8)

Back 6

suggests that, in contrast to mass markets, an ever increasing number of market segments has distinct preferences.

Front 7

Power retailers (p 10)

Back 7

Characterized by large market share and low prices (Wal-Mart, Home Depot, Best Buy). Often wield greater power than the companies that supply them.

Front 8

Systems approach (10)

Back 8

indicates that a company's objectives can be realized by recognizing the mutual interdependence of the major functional areas of the firm. (marketing, production, finance, and logistics).

Front 9

Stock-keeping units (SKUs) (11)

Back 9

Each separate type of item that is accounted for in inventory

Front 10

inbound logistics (11)

Back 10

movement and storage of materials into a firm

Front 11

materials management (11)

Back 11

movement and storage of materials within a firm

Front 12

physical distribution (13)

Back 12

storage of finished product and movement to the customer

Front 13

total cost approach (13)

Back 13

all relevant activities in moving and storing products should be considered as a whole, not individually

Front 14

cost trade-offs (13)

Back 14

Changes to one logistics activity cause some costs to increase and others to decrease

Front 15

FOB Origin (15)

Back 15

does not include any transportation costs to the purchaser. Purchaser is responsible for selection of transportation mode(s) and carrier(s) b/c the buyer assumes the expense of the transportation.

Front 16

Landed Costs (15)

Back 16

the price of the product at the source plus transportation costs

Front 17

FOB destination (16)

Back 17

the seller quotes the purchaser a price that includes both the price of the product and the transportation cost. The seller selects mode(s) and carrier(s). [Each purchaser has same landed costs]

Front 18

phantom freight (16)

Back 18

Buyers located relatively close to the seller's point (closer than average) pay more than their share of freight charges.

Front 19

freight absorption (16)

Back 19

buyer actually pays lower freight charges than the seller incurs in shipping the product.

Front 20

Why marketers find FOB destination pricing attractive (16)

Back 20

1) enables a company to expand the geographical area to which its product is sold
2) Easier to apply uniform retail price
3) Easier to control logistics network/function in manner that is most beneficial to a firm's overall objectives

Front 21

Drawbacks of FOB destination pricing (16)

Back 21

1) seller must understand the various distribution activities and the trade-offs among them
2) pricing system essentially discriminates based on a company's location

Front 22

freight pre-paid vs. freight collect (16)

Back 22

prepaid- paid at time shipment is tendered to carrier.

collect- paid at time of shipment delivery

Front 23

Stockouts (18)

Back 23

(being out of an item at the same time there is demand for it)

Front 24

postponement (19)

Back 24

The delay of value-added activies such as assembly, production, and packaging until the latest possible time.

Front 25

Ownership Channel (20)

Back 25

covers movement of the title to the goods

Front 26

Negotiations channel (20)

Back 26

buy and sell agreements are reached

Front 27

Financing Channel (20)

Back 27

handles payment for goods (more importantly, company's credit)

Front 28

Promotions Channel (21)

Back 28

promoting a new or existing product

Front 29

Logistics channel (21)

Back 29

most significant contribution is the sorting function.

Front 30

Sorting function has 4 steps (21)

Back 30

Sorting out, accumulating, allocating, assorting

Front 31

facilitators (channel intermediaries)

Back 31

make the entire system function better (ex translators)