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43 Cards in this Set
- Front
- Back
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What are the 5 driving forces of SCM?
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1. The Empowered Consumer
2. Power Shift in the Supply Chain 3. Deregulation 4. Globalization 5. Technology |
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What are the Value-Added Roles of Logistics? (4)
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1. Form
2. Time 3. Place 4. Possession |
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How does logistics affect the economical development? (4)
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1. Facilitates Specialization and Trade.
2. Living Standards, variety of goods. 3. Lower prices by stimulating competition. 4. Enhances Land Value. |
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If you increase a products density, what are you doing to it?
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Making it more compact and easier to ship.
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What is Procurement?
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Broader scope that involves purchasing, traffic, warehousing and receiving inbound materials
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What are the objectives of Materials Requirements Planning? (3)
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1. Have materials delivered EXACTLY to meet requirements of the master production schedule.
2. Minimize or eliminate inventory 3. Planned manufacturing, purchasing, and deliver activities. |
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What are the most important criteria in selecting vendors in Materials Management? (3)
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1. Sources. (catalogs, trade shows.)
2. Selections. (Quality, reliability, financial stability.) 3. Price (the "Best" price.. Not necessarily the lowest.) |
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Define Channel Distribution.
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Any series of individuals or firms who participate in the flow of goods and services from producer to final user or consumer.
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What is Intensive Distribution?
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Marketing strategy under which a firm sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations, etc. Soft drinks are generally made available through intensive distribution.
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What is Selective Distribution?
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Takes place when suppliers sell through a moderate number of retailers. This allows suppliers to have higher sales than in exclusive distribution and lets retailers carry some competing brands.
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What is Exclusive Distribution?
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Retail selling strategy typically used by manufacturers of high-priced, generally upscale merchandise, such as cars or jewelry, whereby manufacturers grant certain dealers exclusive territorial rights to sell the product.
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Why would a Buyer choose to buy FOB Origin, instead of FOB Destination?
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They want to control the shipping aspects. It would be cheaper for them.
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What is Cycle Stock?
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Portion of inventory available (or planned to be available) for the normal demand during a given period, excluding excess stock and safety stock.
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What is Safety Stock?
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extra units of inventory carried as protection against possible stockouts (shortfall in raw material or packaging).
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What is ABC Analysis?
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provides a mechanism for identifying items that will have a significant impact on overall inventory cost, while also providing a mechanism for identifying different categories of stock that will require different management and controls.
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What is a Critical Value Analysis?
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Type of ABC analysis in which a 'critical value' (based on an item's perceived or known importance) is assigned to every item in an inventory control system.
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What is Dependent Demand?
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Demand for item (called lower level or child item) that does not occur until there is a demand for another item (called higher level or parent item). Also, where demand for the higher level or parent item can be satisfied only if the lower level or child items are available.
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What is Independent Demand?
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Inventory control classification for items the demand for which has no relationship with the demand for any other item.
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What is a Push Demand Strategy?
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A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product (Retailers need special education to sell: Technology, Cars, High value items)
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What is a Pull Demand Strategy?
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A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. (Gum)
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What is the equation for Total Annual Cost?
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[(.5 * Q * V * W) + (A *R/Q)]
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What are the variables associated with TAC?
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R = Annual Demand
A = Order Cost per Order V = Value or cost of one unit W = Carrying cost per Dollar Q = EOQ (Cycle Stock) |
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What is a Distribution Warehouse (DC)?
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A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be re-distributed to retailers, to wholesalers or directly to consumers.
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What is a Storage Warehouse?
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A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc
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What are the Characteristics, Capabilities, typical forms of legal ownership, and type of products carried in AIR TRANSPORT?
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Cost: HIGHEST
Speed: FASTEST Reliability: HIGH Capability: HIGH Legal Ownership: Common, Contract, or Private Products Carried: High Value, Time Sensitive |
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What are the Characteristics, Capabilities, typical forms of legal ownership, and type of products carried in WATER TRANSPORT?
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Cost:LOW
Speed: SLOW Reliability: LOW Capability: HIGH Legal Ownership: Common, Contract, Private Products Carried: Low Value, Bulk |
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What are the Characteristics, Capabilities, typical forms of legal ownership, and type of products carried in MOTOR TRANSPORT?
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Cost: HIGH
Speed: HIGH Reliability: HIGH Capability: HIGH Legal Ownership:Common, Contact, Private Products Carried: High Value, Manufactured Items |
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What are the Characteristics, Capabilities, typical forms of legal ownership, and type of products carried in RAIL TRANSPORT?
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Cost: LOW-MEDIUM
Speed: LOW-MEDIUM Reliability: BAD Capability: HIGH Legal Ownership:Common, Contact Products Carried: Low Value, Bulk |
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What are the Characteristics, Capabilities, typical forms of legal ownership, and type of products carried in PIPELINE TRANSPORT?
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Cost: LOW
Speed: SLOW Reliability: HIGH Capability: HIGH Legal Ownership:Common Products Carried: Oil, petroleum. |
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What is Reasonable Dispatch?
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A reasonable amount of time to ship a good that's determined by the shipper.
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What determines a product or service's Price Ceiling?
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Whatever someone is willing to pay
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What is the difference between the Cost of Service pricing vs value of service pricing?
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Cost of service - What is actually cost the seller
Value of Service - What it is worth to the buyer. |
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Define the following Rate Constructs:
1. Joint 2. Local 3. Through 4. Combination |
1. Joint - 2 or more trucks involved in a single shipment.
2. Local - Only 1 truck involved in a shipment. 3. Through - Only 1 rate is applied during transit. 4 Joint - 2 or more rates are applied during transit. |
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What is a Vertical Relationship?
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Refers to linkages between firms in the supply chain such as retailers, distributors, manufacturers, and parts and materials suppliers
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What is a Horizontal Relationship?
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Includes those business agreements between firms that have "parallel" or cooperating positions in the logistics process.
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What is Statistical process control (SPC)?
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the application of statistical methods to the monitoring and control of a process to ensure that it operates at its full potential to produce conforming product. Under SPC, a process behaves predictably to produce as much conforming product as possible with the least possible waste.
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What is Benchmarking?
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the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time, and cost. Improvements from learning mean doing things better, faster, and cheaper.
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What is a Staff Organization?
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A staff helps an expert get all his work done. To this end, a "chief of staff" decides whether an assignment is routine or not. If it's routine, he assigns it to a staff member, who is a sort of junior expert. The chief of staff schedules the routine problems, and checks that they are completed.
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What is a Matrix Organization?
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This organizational type assigns each worker two bosses in two different hierarchies. One hierarchy is "functional" and assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field. The other direction is "executive" and tries to get projects completed using the experts. Projects might be organized by regions, customer types, or some other schema. matrix management
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What tools are used in Statistical process control (SPC)?
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In understanding a process, the process is typically mapped out and the process is monitored using control charts. Control charts are used to identify variation that may be be due to special causes, and to free the user from concern over variation due to common causes.
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Why do firms outsource?
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To increase their business, to save on product costs, access to specialized services
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What does the Federal Meritime Commission (FMC) do?
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Monitors activities of ocean common carriers, maintains a trade monitoring and enforcement program, and monitors the laws and practices of foreign governments
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What does the International Air Transport Association (IATA) do?
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All the Airline rules and regulations are defined by IATA.The main aim of IATA is to provide safe and secure transportation to its passengers
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