Term
| Purchasing objectives are |
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Definition
1.Obtain goods and services of the right quality and quantity needed
2.Obtain goods ad services at the right cost
3.Ensure best possible service by supplier to customer
4.Identity qualified suppliers and maintain good relations |
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Term
| Goods are provided by only one supplier is called |
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Definition
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Term
| Goods are provided by more than one supplier is called |
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Definition
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Term
| Goods are provided by one supplier, but other suppliers fpr the goods are available |
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Definition
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Term
| The key factors for supplier partnering are: |
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Definition
1.Long term commitment
2.Trust
3.Shared vision |
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Term
| The supplier physically gives the product to the customer for use and supplier retains the ownership of the product until used. |
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Definition
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Term
| The buyer owens the goods and the visibility of buyer's forecasts are shared with supplier. |
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Definition
| Vendor Managed Inventory (VMI) |
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Term
| Purchasing cycle include: |
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Definition
1.Generate requisition
2.Issue PO
3.Follow up
4.Receive goods
5.Approve payment |
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Term
| The goal of monitoring supplier performance is: |
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Definition
1.To track supplier progress towards meeting commong goals
2.To provide timely feedback to the supplier
3.To improve communication between the buyer and suppliers
4.To have system in place for ongoing continuous improvement |
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Term
| Physical distribution adds value in |
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Definition
1.Place value - locates goods where they are available to customers
2.Time value - makes goods available when customers want them |
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Term
| Distribution inventory is management concern in |
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Definition
| MTS production environment. |
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Term
| Distribution inventory obectives are |
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Definition
1.Provide required level of customer service
2.Minimize the cost of transportation and handling
3.Minimize the inventory cost
4.Interact with the factory to minimize scheduling problems |
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Term
| Systems used to control distribution inventory: |
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Definition
1.The pull (decentralized)
2.The push (centralized)
3.DRP |
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