Chapter 9

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  1. Supply Chain Management
    synchronization of a firm's processes and those of its suppliers to match the flow of materials, services, and information with customer demand
  2. Inventory
    Stock of items, including materials, orders, information, and people that flow through or are used in a process to satisify customer demand
  3. Raw Materials (RM)
    Materials and items used as inputs for the production of goods and services
  4. Work-In-Progress (WIP)
    items partway through a process that are needed for a final product or service
  5. Finished Goods (FG)
    Items that have completed the manufacturing or service process
  6. Purchasing
    Management of the buying and acqusition process, which includes sourcing inputs, deciding which suppliers to use and negotiating contracts
  7. Production
    Management of the transformation process devoted to producing the good or service
  8. Distribution
    management of the flow of finished goods from manufacturers to customers and from warehouses to retailers, involving the storage and transporation of products
  9. Materials Management
    Supply chain decisions about the purchase of materials and services including placement and size of inventories
  10. Order-Placement Process
    activities required to register the need for a product or service and to confirm the acceptance of the order
  11. Order-Fullfillment Process
    Activities required to deleiver product/service to customer
  12. Inventory Pooling
    Reduction in inventory and safety stock b/c of the merging of variable demands from customers
  13. Forward Placement
    Locating stock closer to customers at a warehouse, distribution centre, wholesaler, or retailer
  14. Vendor Managed Inventories (VMI)
    extreme application of the forward placement tactic that involves locating the inventories at the customer
  15. Continuous Replenishment
    VMI method in which supplier monitors inventory levels at the customer and replenishes the stock as needed to avoid shortages
  16. Postponement
    tactic used by assemble-to-order and mass customization firms that refers to delayin customizing of a product or service until last possible moment
  17. Channel Assembly
    prcoess of using members of the distribution channel to put together components as if they were assembly stations in the factory
  18. Radio Frequency Identification (RFID)
    meothod for identifying items thorugh use of radio signals from a tag attached to an item
  19. Cross-Docking
    packing of products on incomining shipments so that they can easily be sorted at intermediate warehouses and immediately transferred for outgoing shipment based on their final destinations
  20. Green Purchasing
    using enviromental criteria in purhcasing decisions to favour suppliers (and inputs) with strong enviornmental management systems, performance and certification
  21. Competitive Orientation
    supplier relation that views negotations between buyer and seller as a zero-sum game: whatever one side loses the other side gains; short-term advantages are prized over long-term commitments
  22. Cooperative Orientation
    Supplier relation in which buyer and seller are partners, each helping the other to achieve mutually beneficial objectives
  23. Sole Sourcing
    awarding of a contract for item or service to only one supplier
  24. Electronic Data Interchange (EDI)
    technology that enables the transmission of routine business documents having a standard format from computer to computer over telephone or direct leased lines
  25. Catalogue Hubs
    Posting of a centralized electronic catalogue online that enables employees to place orders for pre-approved items
  26. Exchange
    Electronic marketplace where buying firms and selling firms come together to do business
  27. Auction
    extension of the exchange in which firms place competitive bids to buy something
  28. Reverse Auction
    suppliers bid for contracts with buyers
  29. Value analysis
    systematic effort to reduce the cost or improve the performance of products or services, either purchased or produced
  30. Early Supplier Involvement
    Program that includes suppliers in the design phase of a product or service
  31. Presourcing
    level of supplier involvement in which suppliers are selected early in a product's concept development stage and are given significant, if not total, responsiblity for the design of certain components or systems
  32. Average Aggregate Inventory Value
    total value of all items held in inventroy by a firm
  33. Weeks of Supply
    Inventory measure obtained by dividing average aggregate inventory value by sales per week at cost
  34. Inventory Turnover
    Measure of the rate at which inventory is consumed, obtained by dividing annual sales at cost by the average aggregate inventory value maintained during the year
  35. Bullwhip Effect
    phenonmenon in supply chains whereby ordering patterns show increasing variance as you move upstream in the chain
  36. Backward Integration
    firm's movement upstream toward the sources of raw materials and parts
  37. Forward Integration
    firm's movemen downstream by acquring channels of distribution finished goods manufacturing or supplemental services
  38. Offshoring
    Supply chain strategy that involves moving processes to another country
Card Set:
Chapter 9
2012-03-04 21:12:08
Supply Chain Management

Operations Management
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