MKTG 361 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

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 inducing inventory velocity and operational flexibility simultaneously in the supply chain

Question 4

Supply Chain Integration

Answer 4

when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer

Question 5

Demand-Supply Integration (DSI)

Answer 5

a supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization

Question 6

Business Processes

Answer 6

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

Question 7

Customer Relationship Management (CRM) Process

Answer 7

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

Question 8

Customer Service Management Process

Answer 8

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

Question 9

Demand Management Process

Answer 9

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 purchasing behavior

Question 10

Order Fulfillment Process

Answer 10

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 11

Manufacturing Flow Management Process

Answer 11

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

Question 12

Supplier Relationship Management Process

Answer 12

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

Question 13

Product Development and Commercialization Process

Answer 13

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

Question 14

Returns Management Process

Answer 14

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 15

Logistics

Answer 15

the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption

Question 16

Supply Chain Team

Answer 16

an entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer

Question 17

Inventory Control System

Answer 17

a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer’s or a customer’s demand

Question 18

Materials Requirement Planning (MRP;materials management)

Answer 18

inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer

Question 19

Distribution Resource Planning (DRP)

Answer 19

an inventory control system that manages the replenishment of goods from the manufacturer to the final consumer

Question 20

Automatic Replenishment Program

Answer 20

a real-time inventory system triggers shipments only when a good is sold to the end user

Question 21

Order Processing System

Answer 21

a system whereby orders are entered into the supply chain and filled

Question 22

Electronic Data Interchange (EDI)

Answer 22

information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission

Question 23

Build-To-Stock

Answer 23

a production method whereby products are made in advance of demand based on forecasts and are stored until customer orders arrive

Question 24

Mass Customization (build-to-order)

Answer 24

a production method whereby products are not made until an order is placed by the customer; products are made according to the customer specifications

Question 25

Postponement

Answer 25

a hybrid production method whereby basic units of a finished goods are manufactured in advance of actual demand and held in strategic form or location until demand occurs, when final customization takes place

Question 26

Materials-Handling System

Answer 26

moving inventory into, within, and out of the warehouse

Question 27

Logistics Information System

Answer 27

the link that connects all the logistics functions of the supply chain

Question 28

Smart RFID

Answer 28

an inventory handling and tracking system that employs radio-frequency electromagnetic fields to transfer and read product data via an electronic tag

Question 29

Outsourcing (contract logistics)

Answer 29

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 30

Third-Party Logistics Company (3PL)

Answer 30

a firm that provides functional logistics service to others

Question 31

Fourth-Party Logistics Company (4PL or logistics integrator)

Answer 31

a consulting-based organization that assesses another's entire logistical service needs and provides integrated solutions, often drawing on multiple 3PLs for actual service

Question 32

Offshoring

Answer 32

outsourcing of a business process from one country to another for the purpose of gaining economic advantage

Question 33

Nearshoring

Answer 33

the transfer of an off shored activity from a distant to nearby country

Question 34

Supply Chain Risk

Answer 34

any potential disruption that threatens the supply chain's efficient and effective operations

Question 35

Supply Chain Security

Answer 35

efforts made by companies to protect their in-transit inventory or value-transforming assets from external or internal threats

Question 36

Supply Chain Resilience

Answer 36

the ability of a supply chain to return to its ideal operational state after being disrupted

Question 37

Electronic Distribution

Answer 37

includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals

Question 38

Three-Dimensional Printing (3DP)

Answer 38

the creating of 3D objects via an additive manufacturing (printing) technology that layers raw material into desired shapes

Question 39

Sustainable Supply Chain Management

Answer 39

embraces the need for optimizing social and environmental costs in addition to financial costs