test 1 Flashcards
What is a supply chain?
A group or set of companies involved with all interrelated activities that make a product a product
What are the fundamental steps of a supply chain?
- Sourcing raw materials
- Refining materials into basic parts
- Combining basic parts to create a product
- Order fulfillment/sales
- Product delivery
- Customer support and return services
What are the fundamental flows in a supply chain?
- Product/material flow
- Information/data flow
- Finance money flow
Who are the key players in a supply chain?
- Customers
- Producers
- Suppliers/vendors
- Transportation companies
- Distribution centers
- Stakeholders
What does the SCOR model stand for?
- Plan
- Source
- Make
- Deliver
- Return
What is the goal of supply chain management?
To create and capture value (profit margin)
What is a value proposition?
Figuring out what your customers value, including tangible and intangible benefits
What are characteristics of a well-designed value proposition?
- Features that customers value
- Differentiates from competitors
- Satisfies financial goals
- Consistently fulfills its promise to customers
- Consistent with the firm’s core values
What is realized revenue?
Contracted sales revenue +/- bonus or penalties
What is the formula for gross margin?
Realized revenue - cost of goods sold
What are the three types of competitive strategies?
- Cost leadership
- Differentiation
- Focus
What does the term ‘OTIF’ stand for?
On time in full
What are customer service measurements in supply chain?
- Product availability
- Fill rate
- Unit fill rate
- Line fill rate
- Order fill rate
- Order to delivery lead time
What is Economic Order Quantity (EOQ)?
When holding costs and operating costs are equal, resulting in the lowest total acquisition cost
What is safety stock?
Stock held over expected demand due to variable demand and/or lead time
What is the purpose of supply chain mapping?
To visualize the supply chain and make informed decisions about opportunities and performance
What is the definition of total landed cost?
Sum of all product and logistic-related costs
What are modes of transportation in logistics?
- Truck
- Rail
- Water
- Pipeline
- Air
- Intermodal
What is the cheapest way of transportation?
Ocean freight
What is the most expensive way to transport goods?
Air
What does ‘trade unit’ refer to?
The unit in which the customer places an order, set at the customer level
Fill in the blank: The maximum capacity is the highest achievable level under _______ conditions.
ideal
Fill in the blank: The _______ measures the impact of stockouts over time.
fill rate
