Ch. 9 Supply Chain Flashcards
ABC Slotting
Warehouse items with a high number of orders over a time period are grouped together and located in zone A, slow moving items are in zone C, and the rest are in zone B.
Assemble-to-order (ATO)
Producing a large variety of products after customer orders are received from few standardized subassemblies and components which are held in inventory.
Automated Storage and Retrieval System
A computer-controlled system for automatically placing and retrieving loads from defined storage locations.
Avoidance
Preventing returns by dealing with their causes.
Bill of Landing
A transport contract that provides a detailed list of a shipment of goods and all information the carrier needs, issued by a carrier to a shipper.
Bullwhip Affect
Demand/order variability gets progressively larger the further back in a supply chain the company is.
Closed Loop Supply-chain
A manufacturer controls both the forward and reverse shipment of product.
Collaborative planning, forecasting, and replenishment (CPFR)
A process for communicating and agreeing on forecasts and orders between the manufacturer and the customer (distributor/retailer).
Consolidation
Combining the various small shipments into a larger shipment.
Cross Docking
Loading goods arriving at a warehouse/DC from a supplier directly onto outbound trucks, thereby avoiding warehouse/DC storage.
Decentralized Purchasing
Individual departments or separate locations handle their own purchasing requirements.
Deconsolidation
Splitting a large batch of received items from a specific source into various small shipments to be delivered to several manufacturers/retailers.
Delayed Differentiation
Waiting until late in the process to add differentiating features to standard components and products.
Distribution requirements planning (DRP)
Starts with the forecast demand at the end of the distribution network (retail stores), and works backward through the network to obtain time-phased replenishment schedules for moving goods from the factory through each level of the distribution network.
Disintermediation
Reducing one or more steps in a supply chain by cutting out one or more intermediaries.
Ecommerce
The use of computers and the Internet to conduct buying and selling activities.
Efficient Consumer Response
An expanded version of quick response, used in the grocery industry, which includes further collaboration.
Electronic Data Interchange
The direct transmission of interorganizational transactions and information, computer-to-computer, including purchase orders, sales data, advance shipping notices, invoices, and engineering drawings.
Engineer To Order
Products are designed and built according to customer specifications.
Gate Keeping
Screening returned goods at the point of entry into the system to prevent inappropriate acceptance of goods.
Intermodal Transportation
Using a combination of two or more transportation modes to transport goods.
Inventory Optimization
A method that determines the location and optimal level of inventory in the supply chain.
Logistics
The movement and warehousing of materials/products and information.
Multi-echelon supply chain
A supply chain with multiple levels or stages.
Order Fulfillment
Involves order processing, scheduling, inventory management, warehousing, packaging, billing, and delivery.
Quick Response
Just-in-time replenishment system used in retailing where orders are based on actual sales, not periodic orders by retailers.
Radio Frequency Identification
A technology that uses radio waves to identify objects such as goods in a supply chain.
Resilience
The ability of a business to recover from an event that negatively impacts the supply chain.
Reverse Logistics
Backward flow of goods returned by consumers or retailers.
Risk Pooling
Holding (safety) stocks in one central location rather than in multiple locations.
Spending Analysis
Collecting, cleansing, classifying, and analyzing expenditure data with the purpose of reducing procurement costs, improving efficiency, and monitoring compliance with purchasing policies.
Stock Keeping Unit
A warehousing item that is unique and must be stored and accounted for separately from other items.
Strategic Partnering
Two or more business organizations that have complementary products or services join so that each may realize a strategic benefit.
Supplier Analysis
Evaluating a supplier in terms of factors such as price, quality, delivery, and service.
Supply Chain
Sequence of organizations—their facilities and activities—that are involved in producing and delivering a product.
Supply Chain Management
Collaboration of supply chain companies and coordination of their activities so that market demand is met as efficiently and effectively as possible.
Supply Chain visibility
A member can connect to any part of the supply chain to access data in real time.
Third Party Logistics
The outsourcing of logistics management.
Traffic Management
nvolved in planning and overseeing the delivery of incoming and outgoing goods.
Value-added Services
Adding features and configurations to the product in a warehouse or distribution centre to match a specific retailer/customer order and increase values for customers.
Value Analysis
Examination of the function and design of a part/product in an effort to reduce its cost.
Vendor-managed Inventory
An agreement in which the supplier has access to the customer’s inventory and is responsible for maintaining the inventory levels required by the customer.
Warehouse Management System
A computer software that controls the movement and storage of materials within a warehouse, and processes the associated transactions.
Warehouse Slotting
The process of organizing, grouping, andplacing products within thewarehousestorage.
