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45 Cards in this Set

  • Front
  • Back
supply chain mgmt
integration of business processes from end user through original suppliers that provides prdocuts, services, and information that add value for customers
effecient supply chain has 2 benefits for customers
1. fewer stockouts and
2. assortments of merchandise that customers want, where they want it.
return on assets=
net profit margin x asset turn over
data warehouse
the coordinated and periodic copying of data from various sources, both inside and outside the enterprise, into an enviornemnt ready for analytical and informational processing
electronic data interchange
computer-to-computer exchange of business documents from retailer to vendor, and back.
advanced shipping notcie
an electronic document received by the retailer's computer from a suplier in advance of a shipment
propriertary EDI systems
data exchange systems that are developed primarily by large retailers for the prupose of exchangeing dat with their vendor
secure communication system stha ttake place within one company
collaborative network that uses internet technology to link business w/ their suppliers, customers, or other businesses. typically private and secure in that they can be accessed only by certain parties
Collabroation, Plannig, forecasting, and replenishment
inventory mgmt sytem using EDI in which a retiler will send info to a manufacutrer and and the manufacturer will use the dat to construct a computer-generated replensihment forecast that will be shared back w/ the retailer before ti's executed
secuirty policy-autentication, authorization, integrity
autenticiation-able to assure/verify who the person is

-authoriztation-assure that person has permission to carry out he request

-integrity-assue arriving information is the same as they sent
part of th esupply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customer's requiremetns .
peroson who coordinates deliveries to the distribution center
process of recording the receipts of merchanise as it arrives at a distribution center
process of goign through the goods upon receipts to make sure they arrived undmaaged and that th emerchandise orderd was the merchandise received
traditional distribution center
warehouse in which merchandise is unloaded from trucks and placed on racks or shelves for storage
crossdocking distribution center
one in which vendor ship merchandise prepackaged in the quantity required for each store, already contains price tags and theft detection tags.
florr-ready merchandise
merchandise that's ready to be placed on the selling floor. entails ticketing, marking, and on hangers
ticketing and marking
refers to makign price and identification labels and placing them on the merchandise
pick ticket
document that tells the order filler how much of each item to get from storage area
pull logistics straegy
orders for merchandise are generated at the store level on the basis of demand data captures by POS terminals
push logistics strategy
merchandise is allocated to stores on the bases of historical demand, the inventory postioin at the distribution center , and the store's need
reverse logistics
flow back of merchandise through the channel, from the customer to the store, distribution center, vendor, for customer returns
-transporation cost=high,
Quick response delivery ssyste
inventory mgmt. stystems designe d to reduce the retaer's lead tiem for recieving merchandise, thereby lowering inventory investment, improving cuomster service levels, and reducing lobistics expenses
Benefits of Quick Response devliery system
-reduce lead time
-increase product availabitliy and lower inventory investment
-reduce logistics expenses
lead tiem
amt. of time b/t the recognition that an order needs to be placed and its arrival in the store, ready for sale.
Cost of QR system
-smaller orders-more expensive to transport
-greater order frequency-deeliveies and transportation more difficult to coordinate
-comptuer hardware and software must be purchased by both parties
third-party logicistics companies
firms that facilitate the movemnt of merchandise from manufcature to retailer but are independently owned
public warehouses
owned and oerpated by third party.
freight forwarders
companies that purchase transport services. consolidate small shipments from a number of shippers into large shipments that move at a lower freight rate
opportunity to reduce costs
transporation costs
-inventory holding costs
information flow
1. when customer makes a purchase, sales associate scands UPC code on merchandise and customer credit card/ loyalty card
2. information about purchase is transmitted from POS terminal to the buyer/planner
3. info abotu purchases are aggregated by buyer/planner and sent to distribution center and vendor
4. buyer/planner communicates w/ vendor and places a purchase order to re-supply sotres
5. buyer/planner notifies distribution center about incoming orders and how they are to be distributed to stores
6. sotre managers inform distribution center about receipt of merchandise and coordinate delieveries
advangaes of using a distribution center
-effects of forecast error for indiidual stores are minimized
-enables retailers to carry less merchandise in the store
-easier to avoid running out of stock
-retail sotre space is more expensive than space at the distribution center
when to use distribution centers
-unpredictable merchandise sales-wide fluctuations in demand
-frequent replenishment required-high number of units sold per day
-items shipped to store in less than full case quantities
-many retail outlets that are not concentrated in one area
radio frequency identification
allows an object or a person to be identified at a distance using radio waves
-reduce warehouse and distribution labor costs
-reduce POS costs
-inventory saving sby reducing inventory errors
-reduce theft-products acan be tracked
-reduce out of stock conditions.

-RFID is expensive-return on investment is low
-only make sense to put tags on pallets
-generate more dat than what can be currently processed
staple merchandise
predicatble demand, history of past sales, relatively accurate forecasts
fashion merchandise
-unpredictable demand
-limited sales history
-difficult to forecast slaes
buffer stock is dependent on
-forecast interval variance (fore coast interval=lead time+ review time)
-variation in demand (actual demand-forecastdemand)
-time to get product from supplier
-time to get product from distribution center
-product availabitliy requested of IM systems
order point
the point at which inventory available should not go below or else we will run out of stock before the next order arrives
= (demand/day) x(lead time +review time))+ backup stock
merchandise budget plan
plan for the financial aspects of a merchandise category
-specifies how much money can be septn each month to achieve the sales, margin, inventory turnover, and GMRO objectives, not a complete buying plan--doesn't indicate what specific SKUs to buy or in what quantities
open to buy
-monitors merchandise flow
-detmerins how much was spent and how much is left to spend
-buyer's "checkbook" a record keeping function
ABC Anlaysis
rank-orders merchandise by some performance measure to determine which items
-should never be out of stock
-should be allowed to be out of stock occasionally
-should be deleted from the stock selection
merchandise managmeent
process by whcih a retailer attempts to offer the right quantity of the right merchandise in the right place at the right time while meeting the company's financial goals
assormtnet planning
process of tradngin off variety, assortment, and back up stock
assortment plan
list of merchandise that indicates in general terms what the retailer wants to carry in a particular merchandise category