First exam

Question 1

Commodity

Answer 1

Transportable article of commerce that can be sold or exchanged

Question 2

Invoice

Answer 2

List of goods or services sen to a purchaser showing information, including prices, quantities and shipping charges.

Question 3

“A” channel

Answer 3

The primary sales channel. Carrying first quality goods that have not been available elsewhere

Question 4

“B” channel

Answer 4

The secondary sales channel, for goods that have not been through a reverse flow. Can carry first quality goods

Question 5

Design for logistics (DFL)

Answer 5

Designing a product for functioning better logistically. Taking into consideration how the product will be handled, shipped, stored, etc.

Question 6

Gray Market

Answer 6

Products sold through unauthorized dealers or channels, generally do not carry a factory warranty.

Question 7

Prepaid

Answer 7

A term denoting that transportation charges have been or are to be paid at the point of shipment

Question 8

Quality

Answer 8

The composite of material attributes, including performance features and characteristics of a product or service to satisfy a given need.

Question 9

Price fixing

Answer 9

Agreement among competing vendors to sell at same price.

Question 10

Purchase order

Answer 10

The signed written acceptance of the offer from the vendor. Serves as the legal binding contract.

Question 11

The twenty foot equivalent TEU

Answer 11

Inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals, it is based on the volume of a 20 feet long intermodal container, a standard sized metal box which can be easily transferred between different modes of transportation, such as ships, trains and trucks.

Question 12

List price

Answer 12

The price of an article published in a catalog. Advertisement or printed list from which discounts, if any, may be subtracted.

Question 13

Packing list

Answer 13

A document which itemizes in detail the contents of a particular package or shipment.

Question 14

Supply chain

Answer 14

A system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer.

Question 15

Partial payment

Answer 15

The payment authorized in a contract upon delivery of one or more units called for under the contract or upon completion of one or more distinct items of service called for thereunder.

Question 16

Design specification

Answer 16

A specification setting forth the required characteristics to be considered for award of contract, including sufficient detail to show how the product is to be manufactured.

Question 17

Public purchasing

Answer 17

The process of obtaining goods and services for public purpose following procedures implemented to protect public funds from being expended extravagantly or capriciously

Question 18

Lead time

Answer 18

The time that it would take a supplier to deliver goods after receipt order.

Question 19

Cooperative purchasing

Answer 19

The combining of requirements of two or more governmental units to obtain the benefits of volume purchases and/or reduction in administrative expenses.

Question 20

Net price

Answer 20

Price after all discounts, rebates, etc. have been allowed

Question 21

Transport

Answer 21

The movement of people, cattle, animals and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline and space. The field can be divided into infrastructure, vehicles and operations.

Question 22

Logistics service provider

Answer 22

Logistic company realizing operations for one or more customers

Question 23

Retail

Answer 23

Retail consists of the sale of physical goods or merchandise from a fixed location, such as department store, boutique or kiosk, or by mall, in small or individual lots for direct consumption by the purchaser.

Question 24

Overstock

Answer 24

Excess inventory

Question 25

Point of sale

Answer 25

Point where the ownership of the product transfers to the customer.

Question 26

Available inventory

Answer 26

Physical inventory minus non shipped customer orders and unavailable products (blocked for quality reasons)

Question 27

Backorder

Answer 27

Customer order which cannot be satisfied now and for which the customer will wait

Question 28

Bill of materials

Answer 28

Hierarchical representation of the components and subcomponents needed for manufacturing a product.

Question 29

Consolidation/groupage

Answer 29

Gathering of the goods from several senders or at destination of several destinations, organizing and in execution of the constituted lot routing by a carrier.

Question 30

Tracking

Answer 30

Goods localization: where is what?

Question 31

Value chain analysis VCA

Answer 31

Method for identifying and quantifying supply chain costs reduction opportunities

Question 32

Just in time delivery JIT

Answer 32

Delivery technique of the necessary quantity of goods, at the required place, at the right time.

Question 33

Carrying cost

Answer 33

All the costs related to the keeping of an article in stock (financial, mark down, warehousing).