Term
| what is logistics? describe some logistics activities. |
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Definition
| those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost; transportation, order processing, inventory control, material handling, and information techonology |
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Term
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Definition
| the practice of organizing the cost-effective flow of raw materials, in process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements |
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Term
| What limits the driving down of logistics cost? |
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Definition
| the need to satisfy customer requirements |
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Term
| what is necessary to create a seamless flow of goods and services to customers? Why is this needed? |
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Definition
| collaboration, coordination, and imformation sharing; needed because getting the right items to the right place at the right time and cost is often beyond a companies individual capabilities and control |
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Term
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Definition
| a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users |
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Term
| supply chain management, (define, and describe their key tasks) |
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Definition
| the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to ultimate consumers; key task is to balance 4 customer service factors against total logistics cost factors |
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Term
| what is an important feature of customer-driven supply chain management? |
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Definition
| the application of sophisticated information technology that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management |
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Term
| electronic data interchange (EDI) |
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Definition
| combines prprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers |
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Term
| what is an extranet? how is it beneficial relative to EDI? |
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Definition
| internet-based network that permits secure business-to-business communication between a manufacturer and its suppliers, distributors, and sometimes other partners; it is less expensive and more flexible than EDI |
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Term
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Definition
| expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return goods handling |
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Term
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Definition
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Term
| why is it important to study the impact on all logistics decision areas when considering a change? |
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Definition
| because all logistics costs are interrelated and changes in one may impact others |
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Term
| what is involved in increasing customer service (benefits, downfalls, and actions taken)? |
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Definition
| benefits include an increase in sales, downfalls are increase in costs (almost 3 times as costly to increase on time delivery from 95 to 100 percent), and actions taken include increasing inventory, more expensive transportation to improve speed, and double or triple checking of orders to ensure correctness. |
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Term
| customer service, (what 4 factors are delivered?) |
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Definition
| the ability of logistics mgt. to satisfy users in terms of time, dependability, communication, and convenience |
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Term
| what does time, one of the 4 customer service factors, refer to? What is it? |
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Definition
| lead time - a.k.a. "order cycle time" or "repleneshment time," the lag from ordering an item until it is received and ready for use or sale |
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Term
| what elements make up a typical order cycle? |
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Definition
| the need to order, order transmittal, order [rocessing, documentation, and transportation |
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Term
| what goal do supply chain managers have for lead time? why? |
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Definition
| reducing lead time in order to reduce cutomer inventory levels and in turn costs |
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Term
| what do managers try to consider when making supply chain decisions (in regard to customer service factors) |
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Definition
| customer service factors must be balace against total logistics cost factors |
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Term
| quick response/efficient consumer response (define and describe benefits) |
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Definition
| inventory management systems that are designed to reduce a retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistics expense |
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Term
| define dependability, its 3 elements, and consequences of not having a dependable supplier |
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Definition
| dependability is the consistency of replenishment; 3 elements include consistent lead time, safe delivery, and complete delivery; consequences include a shut down of production for delays and problems storing extra inventory for early deliveries |
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Term
| desribe communication and give an example of improved communication |
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Definition
| two way link between buyers and sellers that helps in monitoring service and anticipating future needs; ex: status reports |
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Term
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Definition
| buyer should extend minimum effort when dealing with seller |
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Term
| what do customer service standards provide and how are they formed? How do companies monitor them? |
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Definition
| they provide a benchmark against which results can be measured for control purposes and are formed through the collection of information about customers' needs, competitors, and willingness of customers to pay more for better service; monitored through dashboards |
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Term
| what often causes "out-of-stock"'s? how are "out-of-stock"'s calculated? |
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Definition
| poor on-time delivery is often the cause; % = number of outlets where a brand or product is listed but unavailable/total number of outlets where a brand or product is listed |
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Term
| how is on-time delivery calculated? |
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Definition
| % = number of deliveries achieved in time frame promised/total number of deliveries initiated in a time period |
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Term
| how does a marketing channel differ from a supply chain? |
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Definition
| a supply chain has more members; it includes suppliers that provide raw material inputs to a manufacturer (in addition to wholesalers and retailers found in a marketing channel) |
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Term
| what are the 4 key logistic functions in a supply chain? |
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Definition
| transportation, warehousing and material handling, order processing, and inventory management |
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Term
| third-party logistic providers |
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Definition
| firms that perform most or all logistic functions that manufacturers, suppliers, and distributors would normally perform themselves |
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Term
| give the 5 basic modes of transportation and describe what they are evaluated on (6 things) |
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Definition
| railroads, motor carriers, air carriers, pipeline, and water carriers; evaluated on cost, time, capability, dependability, accessibility, and frequency |
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Term
| what are the advantages and disadvantages of railroads |
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Definition
| cost (low cost), capability (fully capable), and accessibility (extensive routes) are all advantages; reliability (some, damage problems), time (sometimes slow), and frequency (not always complete pickup and delivery) are all disadvantages |
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Term
| intermodal transportation |
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Definition
| combining different transportation modes to get the best features of each |
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Term
| piggyback/trailer on flat car (TOFC) |
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Definition
| truck-rail form of intermodal transportation, most popular combination |
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Term
| describe the advantages and disadvantages of motor carriers |
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Definition
| greatest advantage is complete door-to-door service (pickup and delivery), reliable service, they have extensive routes and fast delivery time; disadvantages include limitations on size and weight and higher cost |
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Term
| what are the advantages and disadvantages to air carriers |
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Definition
| they are fast, reliable, and have frequent departures but they have high costs and limited capabilities due to space constraints |
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Term
| freight forwarders (define and explain how they save money) |
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Definition
| firms that accumulate small shipments into larger lots and then hire a carrier to move them, usually at reduced rates; they collect many small shipments consigned to a common destination and pay the carrier the lower rate based on the larger volume |
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Term
| name and define the 2 classifications of warehouses |
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Definition
| storage warehouses: products are intended to come to rest for some period of time (as in the aging of products or storing household goods) and distribution centers: designed to facilitate the timely movement of goods (sometimes for sorting and consolidating products from different manufacturing plants), transforming products, labeling, repackaging, (manufacturer's) sales office tasks, and even order processing center tasks and represent a very important part of the supply chain (the 2nd most significant cost) |
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Term
| what is the most significant cost in the supply chain? |
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Definition
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Term
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Definition
| moving goods over short distances into, within, and out of warehouses and manufacturing plants; part of warehouse operations |
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Term
| what major problems are associated with material handling? |
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Definition
| high costs of labor and high rates of loss and damage |
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Term
| describe the stages of order processing and how it is evaluated |
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Definition
| transmitting the order, entering order in the appropriate databases and sending to those needing it, checking inventory to determine if purchasing may be needed to reorder, documentation for the order prepared, transportation arranged, and order confirmation sent; evaluate in terms of speed and accuracy |
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Term
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Definition
| Electronic funds transfer |
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Term
| what is the purpose of inventory management? What can occur if inventory is not properly managed? |
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Definition
| to maintain a balance between too much and too little inventory; too little can result in poor service, stockouts, brand switching, and loss of market share. too much can result in higher costs because of money tied into inventory and obsolescence risk |
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Term
| what are the 6 traditional justifications for having inventory? |
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Definition
| to have a buffer to variations in supply and demand, to provide service to those who wish to be served on demand, to promote production efficiencies, to protect the firm from strikes and shortages |
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Term
| name and define the 4 costs associated with inventory |
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Definition
| capital costs: opportunity cost from tying up funds in iventory, inventory service costs: insurance and taxes, storage costs: warehousing space and materials handling, and risk costs: loss, damage, pilferage, perishability, and obsolescence |
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Term
| just-in-time (JIT) concept |
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Definition
| inventory supply system that operates with very low inventories and requires fast, on-time delivery. |
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Term
| when is just-in-time used? |
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Definition
| when demand forecasting is reliable |
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Term
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Definition
| an inventory-management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items |
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Term
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Definition
| a process of reclaiming recyclabe and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal. |
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Term
| what types of inventory should use storage warehouses an which type should use distribution centers? |
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Definition
| inventory that is intended to come to rest for some period of time (such as in the aging of products) vs. inventory that requires timely movement |
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Term
| what are the strengths and weaknesses of JIT? |
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Definition
| it lowers inventory costs but it cannot be used when inventory demands are unreliable |
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