MKTG 372 Chapter 4

information system
organization’s supply chain is facilitated by
external suppliers
typically represents the beginning of a supply chain
human resource interviews
supply chain management is vital business function that does not coordinate and manage
Tier one supplier
typically a manufacturer will have more direct contact with what kind of supplier
absenteeism
is not a typical result of bullwhip effect
bullwhip effect
inaccurate or distorted demand information created in the supply chain
base forecasts on demand coming from immediate downstream customer
not a remedy for the bullwhip effect
business cycle
not one of the four major causes of the bullwhip effect
advertising
price fluctuations follow all but which marketing promotions
demand exceeds supply
when do rationing and shortage gaming occur?
Information sharing
collection of POS information is most useful for which bullwhip effect remedy
lead time
time between order placement and the receipt of goods
similar to manufacturing organizations
service organization supply chains are
intranet
network internal to an organization
extranet
extension of intranet to include suppliers and customers
bring together significant number of purchasing firms
net marketplaces are designed to
internet
open to the most users
power from suppliers to the consumers
online retailing or B2B has shifted
crossdocking is required
not some commonly shared ocean shipping logistical characteristics due to globalization
green supply chain management requirement
recent change in supply chain management has been
monitoring supplier performance
purchasing is typically responsible for
manufacturing
most frequently outsourced by large companies
backward integration
refers to woning or controlling sources of raw materials and components
insource
refers to process or activities that are completed in-house
outsource
refers to processes or activities that are completed by suppliers
less outsourcing and more insourcing
higher level of vertical integration implies
indifference point
quantity that equates the cost of making a product to cost of buying product
option with higher variable costs
make-or-buy decision, if we need fewer units than the indifference point, then which option should we definitely choose
fixed and variable
needed for financial calculations of make-or-buy decision
deliveries can be schedule more easily
not a positive attribute of Multiple Suppliers
materials
comprises the bulk of cost of goods sold
suppliers
constant concern within purchasing departments is the issue of ethics in managing
price, quality, on-time delivery
three most important criteria for selecting suppliers
partnering
term for a process of developing a long-term relationship with a supplier based on mutual trust, shared vision, shared information and shared risks
commitment to helping each other succeed
going beyond a basic partnership, an expanded partnership between a firm and its supplier
expanded
two kinds of partnerships are basic and
impact, intimacy, vision
three most critical factors in successful partnering
impact
not possible through normal supplier relationships
intimacy
refers to working relationship between partners
vision
refers to the mission or objectives of partnership
reduce waste, leverage core competence, create new opportunities
three sources of impact
knowledge
leveraging core competence is about sharing
are “arms-length” in nature
not considered to be a characteristic of partnership relations
early supplier involvement
ESI
new product design
ESI refers to the involvement of critical suppliers for
individual consumers
on-line retailing has shifted power in the supply chain the most to
barcode scanners
technology that provides “point-of-sale information”
electronic data interchange
EDI
value-added service for customers
some warehouses provide product mixing
general
type of warehouse used for long-term storage
distribution
type of warehouse used for short-term storage, consolidation and product mixing
truckload (quantity)
TL
crossdocking
process whereby shipments are transferred directly from inbound trailers to outbound trailers
crossdocking
eliminates the storage and order picking functions of distribution warehouse while still performing its receiving and shipping functions
inventory
crossdocking allows the retailer to replace _______________________ with information and coordination
manufacturing
what kind of crossdocking is the receiving and consolidating of inbound supplies to support just-in-time manufacturing
transportation
what kind of crossdocking is the consolidating of shipments from LTL and small package industries to gain economies of scale
postponement
the practice of holding unfinished product to finish closer to the time of sale
probability of assured supply is better
not an argument in favor of having a single supplier
JIT philosophy can be better utilitized
not an argument in favor of having multiple suppliers
6250 units
insourcing incurs an annual fixed cost of $500,000
covisint
electronic marketplace for the auto industry
EDI
“buyer-side” typically industry-specific solution
manage and adapt to all business dynamics
companies want a supply chain that makes it possible to
supply chain velocity
speed at which product moves through pipeline from manufacturer to customers
traffic management
term for arranging the method of shipment for both incoming and outgoing products or material