MKT 421 Exam 1

supply chain
network of all entities involved in producing and delivering a finished product or service to the final customer
value chain
each activity that occurs in the process of producing and delivering a product or service to the final customer should add value
supply chain management
the design, integration, and management of the flows of products, information, and fund from original suppliers to the final customer and ensuring that products are available at the right quantities, in the right locations, and at the right time while minimizing system-wide costs and satisfying customer service level requirements
differentiation
strong, differential value proposition
responsiveness
ability to sense and response to customer and marketplace changes
efficiency
cost structures and business processes must be adapted in a flexible manner to maintain productivity and minimize risk
procurement
primarily tactical processes involved in obtaining merchandising, capital equipment, raw materials, services, or maintenance, repair, and operation supplies
sourcing
selecting the firm’s supply base to acquire its materials, services, supplies, and equipment
strategic sourcing
evaluation and selecting suppliers to acquire materials, services, supplies and equipment based on a long-term, strategic framework
outsourcing
supply chain function being performed by a third party that the company could control in-house
off-shoring
a company maintains controls of a function but moves it off-shore
manufacuting
process or turning inputs into a finished product
bullwhip effect
variability increases up the supply chain
qualitative forecasting
forecasting based on opinion and intuition
quantitative forecasting
forecasting using mathematical models and historical data
time series forecasting
forecasting based on the assumption that the future is an extension of the past
associative forecasting
forecasting based on the assumption that one ore more factors predict future demand
cyclical
wavelike movements that are longer than a year
seasonal
peaks and valleys that repeat over consistent intervals
independent demand
demand for final products has a demand pattern affected by trends, seasonal patterns, and general market conditions
dependent demand
describes the internal demand for parts based on the demand of the final product in which the parts are used
resource requirement planning
manages whether resources are capable of satisfying the demand
sales and operation planning
integration of marketing/sales plans with the supply chain to enable greater efficiencies, ensure sufficient capacity/resources, and increase customer value
raw materials
unprocessed purchase inputs
work-in-process
partially processed materials/product
finished goods
products ready for shipment
maintenance, repair and operating
materials used when producing but not directly related to the product
safety stock
protects against stock outs due to unexpected fluctuations in supply and demand
logistics
coordination of all activities involved in moving and positioning inventory across the supply chain
time utility
products are delivered at the right time
place utility
products are delivered to the desired location
quantity utility
products are delivered at the right quantities
reverse logistics
process of moving products back into the supply chain
common carriers
offer transportation to all shippers at published rates between designated locations without discrimination
contract carriers
not bound to service the general public
exempt carriers
exempt from particular regulation of services and rates if they transport certain exempt products
private carrier
not subject to economic regulation and typically transports goods for the company owning the carrier
logistics service providers
intermediaries that facilitate the use of transportation alternatives
distribution centers
focus on storage, order fulfillment, and product customization
order fulfillment
receiving, assembling, shipping, and delivering a customer order
marketing
responsible for linking the organization to its customers and is generally concerned with the downstream part of the supply chain
standardized strategy
all customers are viewed in the same way; products developed for the average customer
customized strategy
different versions of the product are developed for various, broader segments
niche strategy
targets only one segment of the overall market with very precise products
micro-marketing strategy
product is designed to meet the needs of an individual customer
channels of distirbution
method by which products and services are passed from the manufacturer to the final customer
direct channels
transaction is directly from the producer to the end-user or final customer
indirect channels
intermediaries such as wholesalers and retailers are used to sell to final customers
complexity
uniqueness or diversity within the product portfolio
commonality
reuse of components within the product portfolio
complexity management
collective set of decisions, supporting processes, and initiatives pertaining to determining and implementing the most effective product portfolio
postponement
delaying the timing of customization until key customer data is known
push supply chain
manufacture products based on long-term forecasts and then push the products through the supply chain
pull supply chain
manufacture products based on actual customer demand
decoupling poing
point at which the product becomes customized in the supply chain
logistics postponement
redesign of processes so that customization occurs at the DC or retailer
form postponement
change in product structure using designs that use common components, modules, or process steps
enterprise resource planning
an umbrella software system that links a variety of business process
radio frequency identification
electronic devices that consists of a small chip and an antenna used to transmit wirelessly
performance variance
difference between the standard and the actual program