Ch 4 - Supply Chain Management

Question 1

supply chain

Answer 1

a network of all the activities involved in delivering a finished product or service to the customer

Question 2

supply chain management (SCM)

Answer 2

management of the flow of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to customers

Question 3

external suppliers

Answer 3

all suppliers providing materials or services to manufacturing or service organizations, including the suppliers’ suppliers

Question 4

internal functions

Answer 4

activities performed by the final product company, such as processing, purchasing, production planning and control, quality assurance, and shipping

Question 5

external distributors

Answer 5

transport product or service to appropriate locations for eventual sale to customers

Question 6

tier one supplier

Answer 6

supplies materials or services directly to the processing facility

Question 7

tier two supplier

Answer 7

directly supplies materials or services to a tier one supplier in the supply chain

Question 8

tier three supplier

Answer 8

directly supplies materials or services to a tier two supplier in the supply chain

Question 9

logistics

Answer 9

activities involved in obtaining, producing, and distributing materials and products in the proper place and in proper quantities

Question 10

traffic management

Answer 10

responsible for arranging the method of shipment for both incoming and outgoing products a materials

Question 11

distribution management

Answer 11

responsible for movement of material from the manufacturer to the customer

Question 12

bullwhip effect

Answer 12

inaccurate or distorted demand information created in the supply chain

Question 13

e- commerce

Answer 13

using the Internet & the web to transact business

Question 14

automated order entry system

Answer 14

a method using telephone modems to send digital orders to suppliers

Question 15

electronic data interchange (EDI)

Answer 15

a form of computer-to-computer communications that enables sharing business documents

Question 16

electronic storefronts

Answer 16

online catalogs of products made available to the general public by a single supplier

Question 17

net marketplaces

Answer 17

suppliers & buyers conduct trade in a single internet-based environment

Question 18

electronic request for quote (eRFQ)

Answer 18

an electronic request for a quote on goods and services

Question 19

virtual private network (VPN)

Answer 19

a private internet-based communications environment that is used by the company, its suppliers, and its customers for day-to-day activities

Question 20

business-to-consumer (B2C) e-commerce

Answer 20

online businesses sell to individual consumers

Question 21

advertising revenue model

Answer 21

provides users with information on services and products and provides an opportunity for suppliers to advertise

Question 22

subscription revenue model

Answer 22

a website that charges a subscription fee for access to its contents & services

Question 23

transaction fee model

Answer 23

a company receives a fee for executing a transaction

Question 24

sales revenue model

Answer 24

a means of selling goods, information, or services directly to customers

Question 25

affiliate revenue model

Answer 25

companies receive a referral fee for directing business to an affiliate

Question 26

intranets

Answer 26

networks that are internal to an organization

Question 27

extranets

Answer 27

intranets that are linked to the internet so that suppliers & customers can be included in the system

Question 28

e-distributors

Answer 28

independently owned net marketplaces having catalogs representing thousands of suppliers and designed for spot purchases

Question 29

e-purchasing

Answer 29

companies that connect online MRO supplies to businesses that pay fees to join the market, usually for long-term contractual purchasing (MRO: maintenance, repair parts, & operating)

Question 30

value chain management (VCM)

Answer 30

automation of a firm's purchasing or selling processes

Question 31

exchanges

Answer 31

a marketplace that focuses on spot requirements of large firms in a single industry

Question 32

industry consortia

Answer 32

industry-owned markets that enable buyers to purchase direct inputs from a limited set of invited suppliers

Question 33

supply chain velocity

Answer 33

the speed at which product moves through a pipeline from the manufacturer to the customer

Question 34

green supply chain management

Answer 34

focuses on the role of the supply chain with regard to its impact on the environment

Question 35

requisition request

Answer 35

request indicating the need for an item

Question 36

price and availability

Answer 36

the current price of the item and whether the quantity is available when needed

Question 37

purchase order

Answer 37

a legal document committing the company to bury the goods & providing details of the purchase

Question 38

incoming inspection

Answer 38

verifies the quality of incoming goods

Question 39

sourcing strategy

Answer 39

a plan indicating suppliers to be used when making purchases

Question 40

vertical integration

Answer 40

a measure of how much of the supply chain is actually owned or operated by the manufacturing company

Question 41

insource

Answer 41

processes or activities that are completed in-house

Question 42

outsource

Answer 42

processes or activities that are completed by suppliers

Question 43

backward integration

Answer 43

owning or controlling sources of raw materials and components

Question 44

forward integration

Answer 44

owning or controlling the channels of distribution

Question 45

partnering

Answer 45

a process of developing a long-term relationship with a supplier based on mutual trust, shared vision, shared information, and shared risks (basic & expanded)

Question 46

general warehouse

Answer 46

used for long-term storage

Question 47

distribution warehouse

Answer 47

used for short-term storage, consolidation, and product mixing

Question 48

postponement

Answer 48

a strategy that shifts production differentiation closer to the consumer by postponing final configuration

Question 49

crossdocking

Answer 49

eliminates the storage and order-picking functions of a distribution warehouse

Question 50

manufacturing crossdocking

Answer 50

the receiving and consolidating of inbound supplies and materials to support just-in-time manufacturing

Question 51

distributor crossdocking

Answer 51

the receiving and consolidating of inbound products from different vendors into a multi-SKU pallet

Question 52

transportation crossdocking

Answer 52

consolidation of LTL (less-than-truckload) shipments to gain economies of scale

Question 53

retail crossdocking

Answer 53

sorting product from multiple vendors onto outbound trucks headed for specific stores

Question 54

radio frequency identification (RFID)

Answer 54

a wireless technology that uses memory chips equipped with radio antennas attached to objects used to transmit streams of data