chapter 11 Flashcards
the coordination of all supply chain activities involved in enhancing customer value
supply chain managament
The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply chain’s _______________________ to the ultimate customer
competitive advantage and benefits
: a choice between producing a component or service in-house or purchasing it from an outside source
Make-or-buy decision:
moving processes to a foreign country but retaining control
Offshoring:
: transferring a firm’s activities that have traditionally been internal to external suppliers
Outsourcing
Developing the ability to produce goods or service previously purchased or actually buying a supplier or distributor
vertical integration
refers to acquiring capabilities at the front-end of the supply chain (for instance, suppliers)
Backward integration
refers to acquiring capabilities toward the back-end of the supply chain (for instance, distribution or even customers)
Forward integration
: a Japanese term that describes suppliers who become part of a company coalition
Keiretsu:
companies that rely on a variety of supplier relationships to provide services on demand (also “hollow corporations” or “network companies”)
Virtual companies:
focusing on local profit or cost minimization based on limited knowledge
Local optimization:
low unit cost but do not reflect sales
Large lots:
(sales incentives, quantity discounts, quotas, and promotions): push merchandise prior to sale
Incentives
the increasing fluctuation in orders that move through the supply chain
Bullwhip effect:
Objective is to obtain efficient operations through the integration of all material acquisition, movement, and storage activities.
logistics management
