Chapter 11: Supply Chain Management

Question 1

Centralized Purchasing Function (Pros)

Answer 1

1. Leverage purchase volume for better pricing
2. Maintain professional control over the purchasing process.
3. Devote more resources to the supplier selection and negotiation process.
4. Decrease duplication of tasks

Question 2

Trucking

Answer 2

is increasingly using computers to manage its operations.

Question 3

Airfreight

Answer 3

is a​ fast-growing mode of shipping.

Question 4

Logistics Management (3 Goals)

Answer 4

drive down inventory​ investment
lower delivery​ costs
improve delivery reliability and speed.

Question 5

Channel Assembly

Answer 5

sends individual​ components, modules, and finished​ products, to the distributor.

Question 6

Distribution Networks (Criteria)

Answer 6

rapid​ response, product​ choice, and service

Question 7

Logistics related costs

Answer 7

inventory, transportation and facility

Question 8

Closed loop supply chain

Answer 8

a supply chain designed to optimize both forward and reverse​ flows

prepares for returns prior to product introduction.
involves the processes of sending returned products back up the supply chain for​ resale, repair,​ reuse, remanufacture,​ recycling, or disposal.
sometimes used as a synonym for​ “reverse logistics.”

Question 9

Reverse logistics vs Forward logistics

Answer 9

Forecasting is more uncertain.
Distribution costs are less directly visible
Speed is less important.
Pricing is dependent on many factors.