Chapter 4 Flashcards
Supply chain management (SCM)
Management of the flow of materials from suppliers to customers in order to reduce overall cost and increase
responsiveness to customers.
External suppliers
All suppliers providing materials or services to manufacturing or service organizations, including the suppliers’ suppliers.
Internal functions
Activities performed by the final product company, such as processing, purchasing, production planning and control, quality assurance, and
shipping.
External distributors
Transport product or service to appropriate locations for eventual sale to customers.
Tier one supplier
Tier one supplier Supplies materials or services directly to the processing facility.
Tier two supplier
Directly supplies materials or services to a tier one supplier in the supply chain
Tier three supplier
Directly supplies materials or services to a tier two supplier in the supply chain.
Logistics
Activities involved in obtaining, producing, and distributing materials and products in the proper place and in proper quantities.
Traffic management
Responsible for arranging the method of shipment for both incoming and outgoing products or materials.
Distribution management
Responsible for movement of material from the manufacturer to the customer.
Bullwhip effect
Inaccurate or distorted demand information created in the supply chain.
Supply chain velocity
The speed at which product moves through a pipeline from the manufacturer to the customer
Supply chain velocity
The speed at which product moves through a pipeline from the manufacturer to the customer.
Green supply chain management
Green supply chain management Focuses on the role of the supply chain with regard to its impact on the environment.
Requisition request
Request indicating the need for an item.
