Chapter 15: Supply Chain Management Flashcards
Purchasing Cycle
Series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition
Centralized Purchasing
Purchasing is handled by one special department
Decentralized Purchasing
Individual departments or separate locations handle their own purchasing requirements
Vendor Analysis
Evaluating the sources of supply in terms of price, quality, reputation, and service
Strategic Partnering
Two or more business organizations that have complementary products or services join so that each may realize a strategic benefit
Inventory Velocity
The speed at which goods move through a supply chain
Bullwhip Effect
Inventory oscillations become progressively larger looking backwards through the supply chain
Vendor-managed Inventory
Vendors monitor goods and replenish retail inventories when supplies are low
Order Fulfillment
The process involved in responding to customer orders
Logistics
The movement of materials, services, cash and information in a supply chain
Traffic Management
Over-seeing the shipment of incoming and outgoing goods
Radio Frequency Identification (RFID)
A technology that uses radio waves to identify objects, such as goods in supply chains
Engineer-to-Order
Products are designed and built according to customer specifications
Make-to-Order
A standard product design is used, but production of the final product is linked to the final customer’s specifications
Assemble-to-Order
Products are assembled to customer specifications from a stock of standard and modular components I.e. Dell