CHAPTER 9 Flashcards
System
An interconnected and coordinated set of elements and processes that converts inputs to desired outputs.
Value Chain
All the elements and processes that add value as raw materials are transformed into the final products made available to the ultimate customer.
Outsourcing
Contracting out certain business functions or operations to other companies.
Value Webs
Multidimensional networks of suppliers and outsourcing partners.
Offshoring
Transferring a part or all of a business function to a facility (a different part of the company or another company entirely) in another country.
Supply Chain
A set of connected systems that coordinate the flow of goods and materials from suppliers all the way through to final customers.
Supply Chain Management (SCM)
The business procedures, policies, and computer systems that integrate the various elements of the supply chain into a cohesive system.
Inventory
Goods and materials kept in stock for production or sale.
Inventory Control
Determining the right quantities of supplies and products to have on hand and tracking where those items are.
Procurement
The acquisition of the raw materials, parts, components, supplies, and finished products required to produce goods and services.
Materials Requirements Planning (MRP)
A planning system that works backward from a company’s sales forecasts to make sure it has enough of everything required
to build those goods or perform those services in a timely manner.
Enterprise Resource Planning (ERP)
A planning system that addresses the needs of the entire organization, from manufacturing to sales to human resources.
Production and Operations Management
Overseeing all the activities involved in producing goods and services.
Productivity
The efficiency with which an organization can convert inputs to outputs.
Just-In-Time (JIT)
Inventory management in which goods and materials
are delivered throughout the production process right before they are needed.
