chap 2 Flashcards
everyday task that keep the supply chain running smoothly
supply chain operations
parts of supply chain operations
planning
sourcing
making
delivering
to make sure the hotel or restaurant has everything it needs, decide how to meet customer needs
planning
4 categories to plan
forecasting
aggregrate planning
product pricing planning
inventory management plans
4 major variables of forecasting
supply - amount of product available
demand - total demand for good on the market
product characteristics - product features that influence demand
competitive environment - actions of the product in the market
forecasting methods in supply chain
qualitative - individuals intuition or beliefs
causal - it assumes
time series - based on trends of traditional demands
simulation - combines cause and time series
aggregrate planning
use production capacity to meet demand
use varying levels of total production capacity
use inventory and work in progress inventory
increase gross profit during times of peak demand and produce revenues
product pricing planning
controlling and overseeing the flow of good
inventory management plan
3 kinds of inventory plan
cycle inventory - necessary
safety inventory - expectation of potential demand
seasonal inventory -
sourcing
procurement
acquisition procedure used by an organization to obtain the required product and services
procurement
5 procurement activities
purchasing
consumption management
vendor selection
contract negotiation
contract management
obtaining the funds of business needs
credit and collections
3 credit and collections activities
set credit policy
implement credit and collection processes
manage credit risk