K12 Flashcards
supply chain design
Designing a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy.
supply chain management
The synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand.
creating an effective supply chain
dynamic sales volumes, customer service and quality expectations, Service/product increase, emerging markets
supply chain for service
driven by the need to provide support for the essential elements of the various services it delivers
supply chain for manufacturing
to control inventory by managing the flow of materials.
average aggregate inventory value
of units item A x value of unit item A + # of units item b x value of unit item B
weeks of supply
average aggregate inventory value/weekly sales
inventory turnover
annual sales/ avg aggregate inv value
efficient supply chain
make to stock; shortest order lead time
responsive supply chain
assemble to order, made to order, design to order, longest order lead time
mass customization
a firm’s highly divergent processes generate a wide variety of customized services or products at reasonably low costs
supply chain design for mass customization
assemble to order, modular design, postponement, channel assembly
outsourcing
Paying suppliers and distributors to perform
processes and provide needed services and materials
vertical integration
to acquire processes a firm lacks or is unwilling to perform by purchasing the processes
backward integration
firm’s movement upstream in the supply chain toward the sources of raw materials, parts, and services through acquisitions
