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17 Cards in this Set
- Front
- Back
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Why hold Inventory |
Balance of supply and demand Specialisation Protection from uncertainties Economies of scale Inventory as a buffer |
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Type of inventory |
Speculative stock
Seasonal stock Cycle of stock Dead stock In-transit inventories Buffer or safety stock |
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Objective of inventory management |
*Minimise the total cost of logistics activities *To predict the impact of corporate policies on inventory levels *Increase corporate profitability |
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Ordering costs of products purchased from an outside supplier typically includes- |
*The cost of placing it in storage * The cost of transmitting the order * The cost of receiving the product * The cost of processing the invoice for payments |
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Competitve advantage |
Ability for the product to be replicated e.g. The shape of a milk bottle |
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Comparative advantage |
Can not be replicated. E.g. New Zealand's climatic ability to grow grass |
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Utilisation of resources |
Capacity used or capacity available
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FMCG |
Fast Moving Consumer Goods- Consumed within two months |
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Four facility functions |
Holding Consolidation Break bulk and transshipment (cross-dock) Mixing |
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7 economic characteristics of agri-food value chains |
1. Risk emanating from the biological nature of agri-food supply chains. 2. Role of buffer stock in agri0food chains 3. The scientific foundation of innovation in production agriculture has shifted from chemistry to biology 4. Cyberspace and information technology influences on agri-food supply chain 5. Prevalent market structure at the farm gate is oligopsony 6. Relative market power shifts in agri-food supply chains away from food manufacturers 7. Globalisation of agricultural production and agri-food supply chain. |
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Oligopsony |
Is a market from in which the number of buyers is small while the number of sellers in theory could be larger. |
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Form Utility |
Enchancing the marketability and attractiveness of a product by changing its physical characteristics to appeal to a larger range of consumer. |
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Time utility |
Enchancing a products marketability by making it available at a convenient time. |
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Differentiated product |
Is a product that is made to be distinguished from others, to make it more attractive to a particular target market. |
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Commodity |
Is a raw material or primary agricultural product that can be bought and sold to satisfy needs or wants |
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Information asymmetry |
Is a transaction orientated situation when one party knows more than or has greater/ superior information to another party creating an imbalance of power in the transaction. |
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Bounded rationally |
Is the concept that in decision making, the rationally of individuals is limited due to the lack of information, limited capability of their minds and limited or lack of time. |
