Ch11 Flashcards
supply chain management
1
Q
outsourcing vs offshoring
A
outsourcing is any third party, offshoring another country
2
Q
supply chain general cost
A
around 20%
3
Q
functional product
A
- Life cycle >2 years
- Low margin (5-20%)
- Low product variety
4
Q
innovative product
A
- Life cycle short <1year
- High margin (40-100%)
- high product variety
5
Q
push system
A
uses demand forecast to proactively decide how much to make
6
Q
pull system
A
react to customer orders
7
Q
drop shipping
A
order sent from manufacturer directly to consumer. retailer purely for marketing
8
Q
postponement
A
save inventory costs by customizing later
9
Q
indirect vs direct materials
A
direct-components use to make goods
indirect-good that support operations
10
Q
bullwhip effect
A
demand variations get much larger as you go up the chain
11
Q
contractual coordination
A
align supplier and individual plans and objectives
12
Q
information coordination
A
share info between firms, usually use ICT
