Ops Final Test Flashcards
involves finding potential vendors and determining the likelihood of their becoming good suppliers
Vendor Evaluation
may include everything from training, to engineering and production help, to procedures for information transfer
Vendor Development
approaches taken by supply chain personnel to develop contractual relationships with suppliers
Negotiation Strategies
Three types of negotiation strategies
Cost Based Price Model, Market Based Price Model, Competitive Bidding
Vendor selection process
Vendor Evaluation, Vendor Development, Negotiations
increasing fluctuation in orders or cancellations that often occurs as orders move through the supply chain
Bullwhip Effect
the time between placing an order and receiving it
Lead Time
extra stock to allow for uneven demand; buffer
Safety Stock
the complement of the probability of a stockout
Service Level
continuous and forced problem solving via a focus on throughput and reduced inventory
Just in Time
the time required to move orders through the production process, from receipt to delivery
Throughput
a concept that results in material being produced only when requested and moved to where it is needed just as it is needed
Pull System
eliminates waste through a focus on exactly what the customer wants
Lean Operations
5 S’s
Sort, Simplify, Shine, Standardize, Sustain
any deviation from the optimum process that delivers perfect product on time, every time
Variability
