SCM-2

Question 1

Retail Buying Alignment

Answer 1

This is where the retail buying function is totally integrated to supply chain activity so that a buyer understands and makes decisions within the context of an optimised supply chain model.

Question 2

Safety Stock

Answer 2

The stock held to protect against the differences between forecast and actual consumption, and between expected and actual delivery times of procurement orders, to protect against stockouts during the replenishment cycle.

Question 3

Shelf-ready packaging (SRP)

Answer 3

refers to the preparation of a product so that it is delivered to a retailer in a ready-to-sell merchandised unit.

Question 4

Slotting

Answer 4

A method of optimising the ‘pick path’ in a warehouse, by ensuring that frequently selected items are closer to the despatch area, or lower down in high rise facilities.

Question 5

Supply chain sustainability

Answer 5

management of environmental, social and economic impacts and the encouragement of good governance practices, throughout the lifecycles of goods and services.

Question 6

Total Acquisition Cost (TAQ).

Answer 6

The sum of all the costs to an organisation of carrying an item in stock including reorder, carrying and shortage costs.

Question 7

Total Lead-time

Answer 7

The total time between the decision to place a replenishment order until its availability for use. That is, the sum of Order Lead-time, Purchasing Lead-time, Transit Time and any Goods Inward Lead-time for that replenishment order.

Question 8

Transit Time.

Answer 8

The time taken to move goods physically between different locations in a supply chain or laterally to another facility

Question 9

Turn Around Time (TAT)

Answer 9

The total time taken to repair a component at the repair location, including waiting time but excluding transit time.

Question 10

Vendor Managed Inventory (VMI)

Answer 10

An element of inventory stocked by one organisation but where the forecast demand, and required stock levels to meet that demand, are calculated by the manufacturer or distributor of the stock items concerned

Question 11

Wiggle Factor

Answer 11

A term used in route and fleet planning that converts the ‘straight line’ distance between two points to an approximation of the actual road distance. 1.2 is commonly used in Urban areas.

Question 12

X12

Answer 12

The ANSI standard for inter-industry electronic interchange of business transactions.

Question 13

What is 4PL

Answer 13

A 4PL is a fourth-party logistics provider and it essentially takes third-party logistics a step further by managing resources, technology, infrastructure, and even manage external 3PLs to design, build and provide supply chain solutions for businesses.

Logistics strategy
Analytics including transportation spend, analysis, capacity utilization, and carrier performance
Freight sourcing strategies
Inventory planning and management
Inbound, outbound and reverse logistics management

Disadvantage:
Little control over logistics and fulfillment processes
Likely to be expensive