Exam 3 CH.13

Question 1

supply chain

Answer 1

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

Question 2

supply chain management

Answer 2

a management system that coordinates and integrates all of
the activities performed by supply chain members into a seamless process, from the source
to the point of consumption, resulting in enhanced customer and economic value

Question 3

supply chain agility

Answer 3

an operational strategy focused on creating inventory velocity and flexibility simultaneously in the supply chain

Question 4

outsourcing

Answer 4

a manufacturer’s or supplier’s use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing

Question 5

reshoring

Answer 5

the reinstitutionalization of a business process from an outsource location/country back to the original location for the purpose of gaining
economic advantage

Question 6

nearshoring

Answer 6

the transfer of an outsourced activity from a distant to a nearby
country

Question 7

business processes

Answer 7

bundles of interconnected activities that stretch across
firms in the supply chain

Question 8

customer relationship managment

Answer 8

allows companies to
prioritize their marketing focus on different customer groups according to each
group’s long-term value to the company or supply chain

• This process provides a set of comprehensive principles for the initiation and maintenance of customer relationships and is often carried out with the
  assistance of specialized CRM computer software

Question 9

customer service management process

Answer 9

presents a multicompany, unified
response system to the customer whenever complaints, concerns, questions, or comments are voiced

• When the process is well executed, it can have a strong positive impact on revenues, often as a result of a quick positive response to negative customer
  feedback.
• The use of customer care software enables companies to enhance their customer service management process

Question 10

demand management process

Answer 10

seeks to align supply and demand
throughout the supply chain by anticipating customer requirements at each level
and creating demand-related plans of action prior to actual customer purchases

• Activities such as collecting customer data, forecasting future demand, and developing activities that smooth out demand help bring available inventory into
  alignment with customer desires

Question 11

sales and operations planning

Answer 11

a method companies use to align
production with demand by merging tactical and strategic planning methods
across functional areas of the business

Question 12

order fulfillment process

Answer 12

a highly integrated process, often requiring persons from
multiple companies and multiple functions to come together and coordinate to create
customer satisfaction at a given place and time

Question 13

order cycle time

Answer 13

the time delay between the placement of a customer’s order and the customer’s receipt of that order

Question 14

supplier relationship management process

Answer 14

supports manufacturing flow by
identifying and maintaining relationships with highly valued suppliers

Question 15

product development and commercialization process

Answer 15

includes the group
of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms

Question 16

Manufacturing flow management process

Answer 16

process concerned with ensuring
that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multistage production process

Question 17

returns management process

Answer 17

enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain

Question 18

marketing channel (channel of distribution)

Answer 18

a set of interdependent
organizations that eases the transfer of ownership as products move from producer to business user or consumer

• While “upstream” supply chain members are charged with moving component parts or raw materials to the producer, “downstream” members of the marketing
  channel propel finished goods toward the customer, and/or provide services that
  facilitate additional customer value.

Question 19

merchant wholesalers

Answer 19

an institution that buys goods from manufacturers and resells
them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them

Question 20

agents and brokers

Answer 20

wholesaling intermediaries who do not take title to a product, but
facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers

Question 21

retailers

Answer 21

a channel intermediary that sells mainly to consumers

Question 22

dual or multiple distribution

Answer 22

the use of two or more channels to distribute the same product to target markets

Question 23

nontraditional channels

Answer 23

nonphysical channels that facilitate the unique
market access of products and services

Question 24

strategic channel alliance

Answer 24

a cooperative agreement between business firms to use the other’s already established distribution channel

Question 25

gray marketing channels

Answer 25

secondary channels that are unintended to be used by the producer, and which often flow illegally obtained or counterfeit
product toward customers

Question 26

reverse channels

Answer 26

channels that enable customers to return products or
components for reuse or remanufacturing

Question 27

drop and shop

Answer 27

a system used by several retailers that allows customers to
bring used products for return or donation at the entrance of the store

Question 28

digital channels

Answer 28

electronic pathways that allow products and related
information to flow from producer to consumer

Question 29

m-commerce

Answer 29

the ability to conduct commerce using a mobile device for the
purpose of buying or selling goods or services

− Mobile devices are used to assess and compare products.

− Social shopping allows multiple retailers to sell products to customers through social media
sites

Question 30

intensive distribution

Answer 30

a form of distribution aimed at
having a product available in every outlet where target
customers might want to buy it

Question 31

selective distribution

Answer 31

a form of distribution achieved by screening dealers to eliminate all
but a few in a single area

Question 32

exclusive distribution

Answer 32

distribution to only one or a few dealers within a given area