E3, Ch 16: Global Sourcing and Procurement

Question 1

request for proposal

Answer 1

used for purchasing complex/expensive items; based on proposal to potential vendors

Question 2

vendor-managed inventory

Answer 2

when a supplier actually manages the inventory in the store/retail-side

ex. Walmart sells Sara Lee → Sara Lee stocks the shelves

Question 3

JIT II

Answer 3

supplier places a representative on customer’s physical site dedicated to the customer’s products only

Question 4

bullwhip effect

Answer 4

small changes in demand at the retail level lead to much larger fluctuations in demand at the supplier level

Question 5

vertical integration strategy

Answer 5

owning multiple assets within a SC

Question 6

backwards vertical integration

Answer 6

company owns supplier (Apple owning a factory)

Question 7

forward vertical integration

Answer 7

company owns retail (Apple owning store)

Question 8

strategic alliance

Answer 8

agreement between 2+ parties pursuing similar objectives
ex. starbucks in target

Question 9

greensourcing

Answer 9

push for environmental sustainability

Question 10

inventory turnover

Answer 10

= COGS/inventory
how often inventory is replaced

Question 11

COGS

Answer 11

annual cost for company to produce

Question 12

avg aggregate inventory value

Answer 12

total value of items held in inventory