Shared Flashcard Set

Details

SCMT 340
Test 1 Definitions
53
Business
Undergraduate 3
09/22/2013

Additional Business Flashcards

 


 

Cards

Term
Principle of Comparative Advantage
Definition
The ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another. Even if one country is more efficient in the production of all goods (absolute advantage) than the other, both countries will still gain by trading with each other, as long as they have different relative efficiencies.
Term
Logistics
Definition
The process of planning, implementing, and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from the point of origin to pint of consumption for the purpose of conforming to customer requirements.
Term
Supply Chain Management
Definition
The integration of all activities associated with the flow and transformation of goods from raw materials through to end user, as well as information flows, through improved relationships, to achieve a sustainable competitive advantage.
Term
The Logistics/SC Mission
Definition
Getting the right goods or services to the right place, at the right time, and in the desired condition at the lowest cost and highest return on investment.
Term
Supply Chain
Definition
Encompasses all activities associated with the flow and transformation of goods from the raw materials stage to the end user, as well as the associated information flows. Materials and information flow both up and down this.
Term
Physical Supply Chain
Definition
Refers to the time and space gap between a firm's immediate materials sources and its processing points.
Term
Physical Distribution Channel
Definition
Refers to the time and space gap between a firm's processing points and its customers.
Term
Reverse Logistics Channel
Definition
Products become obsolete, damaged, or non-functioning and are returned to their source points for repair or disposition. Packaging materials may be returned to the shipper.
Term
Extended Supply Chain
Definition
Refers to those members of the supply channel beyond the firm's immediate suppliers or customers.
Term
Strategy
Definition
The process whereby plans are formulated for positioning the firm to meet its objectives.
Term
Corporate Strategy
Definition
Assessing needs, strengths, and weaknesses of the 4 major components: customers, suppliers, competitors, and the company itself.
Term
Crossdocking
Definition
Inventory only comes in to be moved for final destination.
Term
Cost Reduction
Definition
Strategy directed towards minimizing the variable costs associated with movement and storage.
Term
Capital Reduction
Definition
Strategy directed towards minimizing the level of investment in the logistics system.
Term
Service Improvement
Definition
Strategies usually recognize that revenues depends on the level of logistics services provided.
Term
Strategic Planning
Definition
Long-range; where time horizon > 1 year.
Term
Tactical Planning
Definition
Intermediate time horizon; usually < 1 year.
Term
Operational Planning
Definition
Short-range; decisions frequently made on an hourly or daily basis.
Term
Return on Logistics Assets (ROLA)
Definition
(Logistics Contributions to Sales) - (Costs of Logistics Operations) / (Investment in Logistics Assets)

or

Revenue-Costs/Assets
Term
Convenience Products
Definition
Goods and services that consumers purchase frequently, immediately, and with little comparative shopping. (ex: banking services, tobacco items, food)
Term
Shopping Products
Definition
Those for which consumers are willing to seek and compare products. (ex: high fashion clothes, cars, home furnishings, and medical care)
Term
Specialty Products
Definition
Those for which buyers are willing to expend a substantial effort and often to wait a significant amount of time in order to acquire them. (ex: fine foods, custom automobiles)
Term
F.O.B Factory Price
Definition
Single price established at the factory location. Customers take ownership of the goods at this point and are responsible for transportation beyond this point.
Term
F.O.B. Destination (Delivered Price)
Definition
The price to the cusotmer's location or in the general vacinity. Transportation costs are already included in the price. The supplier will make all of the transport arrangements.
Term
Freight Equalization
Definition
If two firms have equal efficiency in producing and selling, which results in the same product cost at the factory locations, then competitive pricing is a matter of transportation costs. If the markets are not equidistant from each factory location, the firm farthest from the marketplace may wish to absorb enough of the freight charges to meet the price competition.
Term
Basing Point
Definition
A geographical site used to establish minimum product prices.
Term
Order Cycle Time
Definition
The time elapsed between when a customer order, purchase order, or service request is placed by a customer and when it is received by that customer.
Term
Pre-transaction Elements
Definition
Establish a climate for good customer service. Providing a written statement of customer service policy, such as when goods will be delivered after an order is placed, the procedure for handling returns and back orders, and methods of shipment, let customers know what kind of service to expect.
Term
Transaction Elements
Definition
Those that directly result in the delivery of the product to the customer. Examples: Setting stock levels, selecting transportation modes, and establishing order-processing procedures.
Term
Post-transaction Elements
Definition
Represent the array of services needed to support the product in the field; to protect consumers from defective products; to provide for the return of packages (returnable bottles, reusable cameras, pallets, etc.); and to handle claims, complaints, and returns.
Term
Order Processing
Definition
Represented by a number of the activities included in the customer order cycle. Specifically, they include order preparation, order transmittal, order entry, order filling, and order status reporting.
Term
Order Preparation
Definition
Refers to the activities of gathering the information needed about the products and services desired and formally requesting the products to be purchased.
Term
Order Transmittal
Definition
It involves transferring the order request from its point of origin to the place where the order entry can be handled.
Term
Order Entry
Definition
Refers to the many tasks that take place prior to the actual filling of an order. These include (1) checking the accuracy of the order information, (2) checking the availability of the requested items, (3) preparing back-order or cancellation documentation (if necessary), (4) checking the customer's credit status, (5) transcribing the order information as necessary, and (6) billing.
Term
Order Filling
Definition
Represented by the physical activities requred to (1) acquire the items through stock retrieval, production, or purchasing; (2) pack the items for shipment; (3) schedule the shipment for delivery; and (4) prepare the shipping documentation.
Term
Order Status Reporting
Definition
Keeping the customer informed of any delays in order processing or delivery. This includes (1) tracing and tracking the order throughout the entire order cycle; and (2) communicating with the customer about where the order may be in the order cycle and when it may be delivered.
Term
Order Management System
Definition
Manages the initial contact with the customer at the time of product inquiries and order placement.
Term
Logistics Information System
Definition
Comprehensive system that includes: order management systems, warehouse management systems, and transportation management systems.
Term
Warehouse Management System
Definition
An information subsystem assisting in the management of product flowing through and stored in the facilities of the logistics network. Key elements: receiving, putaway, inventory management, order processing and retrieving, and shipment preparation.
Term
Transportation Management System
Definition
Focuses on the inbound and outbound transpotation of a firm and is an integral part of the Logistics Information System. It shares information with other LIS components, and its purpose is to assist in the planning and controlling of the firm's transportation activity. This involves (1) mode selection, (2) freight consolidation, (3) routing and scheduling shipments, (4) claims processing, (5) tracking shipments, and (6) freight bill payment and auditing.
Term
Vendor-Managed Inventory
Definition
In these systems, retailers make their own forecasts and inventory-control rules.
Term
Sovereignty
Definition
The absolute right and power of the sovereign to rule over and govern its population and various activities that occur within its territory.
Term
Territory
Definition
The geographic/physical boundaries of a nation. Includes: Land & internal waters, Law of the sea (UNCLOS 1983), and air space
Term
Transit Privilege
Definition
The right granted to a carrier by a nation to cross the territory of that nation in the pursuit of its business activity, but not necessarily to stop in that country.
Term
Service Privilege
Definition
The right granted to a carrier by a nation to enter the territory of that nation in order to provide transport service to, from, or within the country.
Term
Mare Liberum
Definition
"Freedom of the Seas"
Term
Open Port Policy
Definition
Ports of each nation are open to the vessels of the other nation, but may limit specific ports for national defense reasons.
Term
Open Market Policy
Definition
Shipping markets of each country are open to the vessels of the other country regardless of the origin or destination of the cargo.
Term
Cross Trades
Definition
Access of third party nations to the trade route.
Term
Culture
Definition
Sum of total beliefs, values, institutions, rules, techniques, and artifacts that characterize the human population. It is learned and shared, and elements of it are inter-related.
Term
Tempo-centrism
Definition
One's perception of time is distorted by his/her own existence and experiences. Tendency to consider events predating his/her own existence as "less than real". Inability to see a future independent of his/her present and past experiences.
Term
Ethno-centrism
Definition
Belief that the values and characteristics of one's own group constitute the desirable norm. When other groups deviate from this norm they are considered to be misguided, incorrect, or simply inferior.
Term
Geo-centrism
Definition
One's center of perspective is based on his/her geographic location. To the extent that he/she moves about, so does his/her center of perspective and hence his/her perceptions.
Supporting users have an ad free experience!