Chapter 6

Question 1

multinational enterprise

Answer 1

is an organization that sources, markets, and produces its goods and services in several countries to minimize costs, and to maximize profit, customer satisfaction, and social welfare.

Question 2

operational structure

Answer 2

of a supply chain is the configuration of resources such as suppliers, factories, warehouses, distributors, technical support centers, engineering design and sales offices, and communication links.

Question 3

Efficient supply chains

Answer 3

are designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow.

Question 4

Responsive supply chains

Answer 4

focus on flexibility and responsive service and are able to react quickly to changing market demand and requirements.e

Question 5

push system

Answer 5

produces goods in advance of customer demand using a forecast of sales and moves them through the supply chain to points of sale, where they are stored as finished-goods inventory.

Question 6

pull system

Answer 6

produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages.

Question 7

push–pull boundary

Answer 7

The point in the supply chain that separates the push system from the pull system.

Question 8

Postponement

Answer 8

is the process of delaying product customization until the product is closer to the customer at the end of the supply chain.

Question 9

Vertical integration

Answer 9

refers to the process of acquiring and consolidating elements of a value chain to achieve more control.

Question 10

Backward integration

Answer 10

refers to acquiring capabilities toward suppliers.

Question 11

Forward integration

Answer 11

refers to acquiring capabilities toward distribution, or even customers.

Question 12

Outsourcing

Answer 12

is the process of having suppliers provide goods and services that were previously provided internally

Question 13

contract manufacturer

Answer 13

is a firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works under contract for end users.

Question 14

Third-party logistics (3PL) providers

Answer 14

are businesses that provide integrated services that might include packaging, warehousing, inventory management, and transportation.

Question 15

Offshoring

Answer 15

is the building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control.

Question 16

Reshoring

Answer 16

is the process of moving operations back to a company’s domestic location.

Question 17

Multisite management

Answer 17

is the process of managing geographically dispersed service-providing facilities.

Question 18

center-of-gravity method

Answer 18

determines the x and y coordinates (location) for a single facility.

Question 19

Supply chain optimization

Answer 19

is the process of ensuring that a supply chain operates at the highest levels of efficiency and effectiveness.

Question 20

transportation problem

Answer 20

is a special type of linear optimization model that arises in planning the distribution of goods and services from several supply points to several demand locations.