Exam 2 Flashcards
The coordination of all supply chain activities involved in enhancing customer value.
supply chain management
a choice between producing a component or service in-house or purchasing it from an outside source
make-or-buy decision
transferring a film’s activities that have traditionally been internal to external suppliers
outsourcing
developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor
vertical integration
a japanese term that describes suppliers who become part of a company coalition
keiretsu
companies that rely on a variety of supplier relationships to provide services on demand. Also known as hollow corporations or network companies
Virtual companies
using one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other
cross-sourcing
the increasing fluctuation in orders that often occurs as orders move through the supply chain.
Bullwhip effect
accurate sales data that initiate transactions to “pull” product through the supply chain.
pull data
fixing responsibility for monitoring and managing inventory for the retailer
single-stage control of replenishment
a system in which a supplier maintains material for the buyer, often delivering directly to the buyer’s using department.
vendor-managed inventory (VMI)
A system in which members of a supply chain share information in a joint effort to reduce supply chain costs
collaborative planning, forecasting, and replenishment (CPFR)
a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship.
Blanket order
delaying any modifications or customizations to a product as long as possible in the production process.
postponement
Shipping directly from the supplier to the end consumer rather than from the seller, saving both time and reshipping costs.
drop shipping
purchasing facilitated through the internet
e-procurement
an approach that seeks efficiency of operations through the integration of all material acquisition movement, and storage activities
logistics management
postpones final assembly of a product so the distribution channel can assemble it
channel assembly
the process of sending returned products back up the supply chain for value recovery or disposal
reverse logistics
a supply chain designed to optimize both forward and reverse flows
closed-loop supply chain
cost of goods sold divided by average inventory
inventory turnover
a set of processes, metrics, and best practices developed by the Supply Chain Council
Supply Chain Operations Reference (SCOR) model
