Ch 15 Final Review

Question 1

The sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service

Answer 1

Supply Chain

Question 2

The strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management

Answer 2

Supply Chain Management (SCM)

Question 3

Match supply to demand as effectively as possible

Answer 3

Goal of supply chain management

Question 4

Responsible for obtaining the materials, parts, and supplies and services needed to produce a product or provide a service.

Answer 4

Purchasing Department

Question 5

Develop and implement purchasing plans for products and services that support operations strategies

Answer 5

Goal of procurement

Question 6

The speed at which goods move through a supply chain

Answer 6

Inventory velocity

Question 7

Inventory oscillations that become increasingly larger moving backward through the supply chain

Answer 7

Bullwhip effect

Question 8

The movement of materials, service, cash, and information in a supply chain

Answer 8

Logistics

Question 9

Overseeing the shipment of incoming and outgoing goods

Answer 9

Traffic management

Question 10

The outsourcing of logistics management

Answer 10

Third party logistics (3pl)

Question 11

The process of moving returned items

Answer 11

Reverse logistics

Question 12

Screening returned goods to prevent incorrect acceptance of goods

Answer 12

Gatekeeping

Question 13

Finding ways to minimize the number of items that are returned

Answer 13

Avoidance

Question 14

Analyzing the procurement process to lower costs by reducing waste and non-value-added activities, increase profits, reduce risks, and improve supplier performance

Answer 14

Strategic sourcing

Question 15

A technique whereby goods arriving at a warehouse from a supplier are unloaded from the suppliers truck and loaded onto outbound truck, thereby avoiding warehouse storage

Answer 15

Cross-docking

Question 16

Production of standard components and subassemblies which are held until late in the process to add differentiating features

Answer 16

Delayed differentiation

Question 17

Reducing one or more steps in a supply chain by cutting out one or more intermediaries

Answer 17

Disintermediation

Question 18

Large lot sizes yield benefits in terms of quantity discounts and lower annual setup costs, but it increases the amount of safety stock (and inventory carrying costs) carried by suppliers

Answer 18

Lot size inventory trade off

Question 19

Suppliers prefer to ship full truckloads instead of partial loads to spread shipping costs over as many units as possible. This leads to greater holding costs for customers

Answer 19

Inventory transportation cost trade off

Question 20

Suppliers like to ship in full loads, but waiting for sufficient orders and/or production to achieve a full load may increase lead time

Answer 20

Lead time transportation costs trade off

Question 21

Greater product variety usually means smaller lot sizes and higher setup costs, as well as higher transportation and inventory management costs

Answer 21

Product variety inventory trade off

Question 22

Producing and shipping in large lots reduces costs, but increases lead time

Answer 22

Cost customer service trade off