Term
|
Definition
| the development and management of global supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business |
|
|
Term
| specificity of the item, contract duration, intensity of transaction costs |
|
Definition
| the sourcing/purchasing design matrix access labels |
|
|
Term
|
Definition
| how common the item is, and in a relative sense, how many substitutes ight be available |
|
|
Term
|
Definition
| when the supplier takes full responsibility to manage an item or group of items for the customer |
|
|
Term
|
Definition
| stocking up, in some cases buying a year's supply (when a price promotion is in place) |
|
|
Term
|
Definition
| stocking up, in some cases buying a year's supply (when a price promotion is in place) |
|
|
Term
|
Definition
| the phenomenon of variability magnification from the customer to the producer in the supply chain |
|
|
Term
|
Definition
| indicates a lack of synchronization among supply chain members |
|
|
Term
| mismatch between the type of product and type of supply chain |
|
Definition
| the root cause of supply chain problems |
|
|
Term
|
Definition
| two categories of products |
|
|
Term
|
Definition
| include staples that ppl buy in a wide range of retail outlets (grocery stores) |
|
|
Term
|
Definition
| products that satisfy basic needs, with stable predictable demand and long life cycles |
|
|
Term
| product life cycle > 2 years, low CM (5 to 20%), 10-20% VARIATIONS, LOW avg forecast error, lead time 6mos to 1 year |
|
Definition
| criteria for functional products |
|
|
Term
| higher profit margin, short life cycle, unpredictable demand |
|
Definition
| innovative product characteristics |
|
|
Term
|
Definition
| where the manufacturing process and the underlying technology are mature and the supply base is well established; manufacturing complexity=low or manageable; highly automatized |
|
|
Term
|
Definition
| where the manufacturing process and the underlying technology are still under early development and are rapidly changing; supply base not reliable |
|
|
Term
| uncertainty characteristics: low/functional product and low/stable process is better for supply chain performance |
|
Definition
|
|
Term
| efficient supply chains, risk hedging supply chains, responsive supply chains, agile supply chains |
|
Definition
| four types of supply chain strategies |
|
|
Term
|
Definition
| utilize strategies aimed at creating the highest cost efficiency |
|
|
Term
| risk hedging supply chains |
|
Definition
| utilize strategies aimed at pooling and sharing resources in a supply chain so that the risks in supply disruption can be shared |
|
|
Term
|
Definition
| utilize strategies aimed at being responsive and flexible to the changing an diverse needs of the customers; build to order and mass customization processes as a means to met the specific requirements of customers |
|
|
Term
|
Definition
| utilize strategies aimed at being responsive and flexible to customer needs while the risks of supply shortages or disruptions are hedged by pooling inventory and other capacity resources; combine the strengths of hedged and responsive |
|
|
Term
|
Definition
| the act of moving some of a firm's internal activities and decision responsibility to outside providers |
|
|
Term
|
Definition
| the management functions that support the complete cycle of material flow: from the purchase and internal control of production materials to the planning and control of WIP to the finished products |
|
|
Term
|
Definition
|
|
Term
| required coordination, strategic control, intellectual property |
|
Definition
| an activity can be evaluated on 3 characteristics to determine the structure of supplier relationships: |
|
|
Term
|
Definition
| how difficult it is to ensure that the activity will integrate well with the overall process |
|
|
Term
|
Definition
| the degree of loss that would be incurred if the relationship with the partner were severed |
|
|
Term
|
Definition
|
|
Term
|
Definition
| key to the business but do not confer a competitive advantage |
|
|
Term
|
Definition
| key source of competitive advantage |
|
|
Term
|
Definition
| finding new environmentally friendly technologies that can also help drive cost reductions |
|
|
Term
assess the opportunity
engage sourcing agents
assess the supply base
develop the sourcing strategy
implement the sourcing strategy
institutionalize the sourcing strategy |
|
Definition
| 6 step process for green sourcing |
|
|
Term
|
Definition
| an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, including any related costs in disposing of the item after it is no longer useful |
|
|
Term
acquisition costs
ownership costs
post ownership costs |
|
Definition
| 3 types in total cost of ownerships |
|
|
Term
|
Definition
| the initial costs associated with the purchase of materials, products, and services; not long term costs but an immediate cash outflow |
|
|
Term
|
Definition
| incurred after the initial purchase and are associated with the ongoing use of the product or materiel |
|
|
Term
|
Definition
| philosophy for understanding all relevant costs of doing business with a particular supplier for a good or service |
|
|
Term
| inventory turnover, weeks of supply |
|
Definition
| two common measures to evaluate supply chain efficiency |
|
|
Term
| cost of goods sold/avg aggregate inv value; supply chain efficiency |
|
Definition
| inventory turnover formula; what does it measure |
|
|
Term
|
Definition
| annual cost for a company to produce the goods or services provided to customer (cost of revenue) |
|
|
Term
| avg aggregate inventory value |
|
Definition
| total value of all items held in inventory for the firm value at cost (raw materials, WIP, FG, distribution inv) |
|
|
Term
|
Definition
| preferred measure for supply chain efficiency when distribution inventory is dominant |
|
|
Term
|
Definition
| measure of how many weeks' worth of inventory is in the system at a particular point in time |
|
|
Term
| [avg aggregate inv value/cost of goods sold] x 52 weeks |
|
Definition
|
|
Term
|
Definition
| an important way to reduce cost while improving the strategic focus of a firm |
|
|
Term
|
Definition
| what kind of processes should be used for functional products |
|
|
Term
|
Definition
| what kind of process should be used to innovative products |
|
|
Term
|
Definition
| the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of a business |
|
|
Term
|
Definition
| moving some of the firm's internal activities and decision responsibility to outside providers |
|
|
Term
| total cost of ownership tco |
|
Definition
| estimate of the cost of an item that includes all he costs related to the procurement and use of the item including disposing of the item after its useful life |
|
|
Term
|
Definition
| the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities |
|
|
Term
|
Definition
| managing these functions when the movement is on a global scale |
|
|
Term
| third party logistics company |
|
Definition
| external transportation companies; provides moment of goods from one place to another and possibly warehouse management, inventory control, etc. |
|
|
Term
| highway/trucks, water/ships, air, rail, pipelines, hand delivery |
|
Definition
| six widely recognized modes of transportation |
|
|
Term
| volume, speed of delivery, cost |
|
Definition
| logistics system design matrix axises |
|
|
Term
|
Definition
| high capacity, low cost, slower; useful for bulk items (oil, coal, chemicals) |
|
|
Term
|
Definition
| fast but expensive; small light expensive items |
|
|
Term
|
Definition
| low cost, long and variable |
|
|
Term
|
Definition
| an approach used in consolidation warehouse where, instead of larger shipments, large shipments are broken down into small shipments for local delivery in an area |
|
|
Term
|
Definition
| combine the idea of consolidation and that of cross docking; warehouse=hub and purpose is sorting goods; incoming goods are sorted to consilidation areas |
|
|
Term
| free trade zone/foreign trade zone |
|
Definition
| a closed facility under the supervision of the customs department into which foreign goods can be brought without being subject to normal customs requirements |
|
|
Term
|
Definition
| all functions concerned with the movement of materials and FG on a global scale |
|
|
Term
|
Definition
| a group of countries that agree on a set of special arrangements governing the trading of goods between member countries |
|
|
Term
|
Definition
| basic of corporate long run planning |
|
|
Term
|
Definition
| used to help set the strategy of how, in an aggregate sense, we will meet demand; most appropriate when making decisions related to overall strategy, capacity, production process design,, service process design, sourcing, location and distribution design, and sales and operations planning |
|
|
Term
|
Definition
| forecasts needed for day to day basis; goal is to estimate demand i the relative short term (few weeks/months) |
|
|
Term
|
Definition
| points within the supply chain where inventory is positioned to allow processes or entities in the supply chain to operate independently |
|
|
Term
| to coordinate and control all sources of demand so the supply chain can be run efficiently and the product delivered on time |
|
Definition
| purpose of demand management |
|
|
Term
| dependent demand, independent demand |
|
Definition
| 2 basic sources of demand |
|
|
Term
|
Definition
| the demand for a product or service cause by the demand for other products or services |
|
|
Term
|
Definition
| cannot be derived directly from that of other products |
|
|
Term
| qualitative, time series analysis, causal relationships, simulation |
|
Definition
| 4 basic types of forecasting |
|
|
Term
|
Definition
| subjective/judgmental and are based on estimates and opinions |
|
|
Term
|
Definition
| based on the idea that data relating to past demand can be used to predict future demand |
|
|
Term
|
Definition
| assumes that demand is related to some underlying factor in the environment |
|
|
Term
|
Definition
| allow the forecaster to run through a range of assumptions about the condition of the forecast |
|
|
Term
|
Definition
| most often used forecasting types in supply chain planning and control |
|
|
Term
avg demand for a period
trend
seasonal element
cyclical elements
random variation
auto correlation |
|
Definition
|
|
Term
| linear, s curve, asymptotic, exponential |
|
Definition
| four most common types of trends |
|
|
Term
|
Definition
| typical of a product growth and maturity cycle |
|
|
Term
short term <3 mos
medium 3 mos-2 yrs
long term >2yrs |
|
Definition
|
|
Term
|
Definition
| a functional relationship between two or more correlated variables; used to predict one variable given the other |
|
|
Term
|
Definition
| useful for long term forecasting of major occurrences and aggregate planning |
|
|
Term
|
Definition
| used both for time series forecasting and for casual relationship forecasting |
|
|
Term
|
Definition
| ensures that the importance of data diminishes as the past becomes more distant |
|
|
Term
|
Definition
| most used of all forecasting techniques |
|
|
Term
| most recent forecast, actual demand that occurred for that forecast period, smoothing constant alpha |
|
Definition
| three pieces of data needed to forecast the future in exponential smoothing |
|
|
Term
two or more predetermined values of alpha
computed values for alpha |
|
Definition
| two approaches to controlling the value of alpha |
|
|
Term
|
Definition
| the difference between the forecast value and what actually occurred |
|
|
Term
|
Definition
| occur when a consistent mistake is made |
|
|
Term
|
Definition
| those errors that cannot be explained by the forecast model being used |
|
|
Term
| MAD/mean absolute deviation |
|
Definition
| simplicity and usefulness in obtaining tacking signals; average error in the forecasts using absolute values |
|
|
Term
| mape/mean absolute percent error |
|
Definition
| gauges the error relative to the average demand |
|
|
Term
|
Definition
| a measurement that indicates whether the forecast average is keeping pace with any genuine upward or downward changes in demand |
|
|
Term
|
Definition
| number of MADs that the forecast value is above or below the actual occurrence |
|
|
Term
|
Definition
| forecasting techniques most useful wen the product is new or there is little experience with selling into a new region |
|
|
Term
| market research, panel consensus, historical analogy, Delphi method |
|
Definition
| samples of qualitative forecasting techniques: |
|
|
Term
| Delphi technique-3 rounds |
|
Definition
|
|
Term
|
Definition
| best suited for medium/long term strategic forecasts that lead to heavy financial commitments |
|
|
Term
|
Definition
| a time series forecasting technique in which each increment of past demand data is decreased by (1 - alpha) |
|
|
Term
|
Definition
| the parameter in the exponential smoothing equation that controls the speed of reaction to differences between forecasts and actual demand |
|
|
Term
|
Definition
| a measure that indicates whether the forecast average is keeping pace with any genuine upward or downward changes in demand |
|
|
Term
|
Definition
| aka distribution center bypass; direct distribution; keeps inventory moving from manufacturer to end customer by eliminating stops at warehouses along the way |
|
|
Term
|
Definition
| offers a good balance between fulfillment speed and logistics costs |
|
|
Term
| global sourcing and upstream migration of value added logistics services |
|
Definition
| accounts for the emergence of the direct to store model |
|
|
Term
| selection of decoupling points |
|
Definition
| determines customer lead times |
|
|
Term
| single period, fixed order quantity, and fixed time period models |
|
Definition
| appropriate when demand is difficult to predict and for retail/warehouse inventory |
|
|
Term
|
Definition
| used when making a one time purchase of an item |
|
|
Term
| fixed order quantity model |
|
Definition
| used when we want to maintain an item in stock and when we resupply the item with a certain number of units ordered each time |
|
|
Term
|
Definition
| when the item is ordered at certain intervals of time |
|
|
Term
| ABC analysis, cycle counting |
|
Definition
| focus attention on the high value items and ensure the quality of the transactions that affect the tracking of inventory levels |
|
|
Term
|
Definition
| stock of any item or resource used in an organization |
|
|
Term
|
Definition
| set of policies and controls that monitor levels of inventory and determine what levels should be maintained, when stock should be replenished, and how large orders should be |
|
|
Term
|
Definition
| items that contribute to or become part of a firms product output |
|
|
Term
| maintain independence of operations, to meet variation in product demand, to allow flexibility n scheduling, safeguard for variation in raw material delivery time, take advantage of economic purchase order size |
|
Definition
|
|
Term
holding/carrying costs
setup/production change costs
ordering costs
shortage costs |
|
Definition
|
|
Term
| demand, transaction costs, obsolete inventory (risk) |
|
Definition
| inventory control system design matrix |
|
|
Term
|
Definition
| provides the organizational structure and the operating policies for maintaining and controlling goods to be stocked; responsible for ordering and receipt of goods: timing the order placement and keeping track of what has been ordered, how much, and from whom |
|
|
Term
|
Definition
| occurs at the point where the expected benefits from carrying the next unit are less than the expected costs for that unit |
|
|
Term
| multiperiod inventory systems |
|
Definition
| designed to ensure that an item will be available on an ongoing basis throughout the year |
|
|
Term
|
Definition
|
|
Term
|
Definition
| perpetual system which requires that every time a withdrawal from inventory or addition to inventory is made, records must be updated |
|
|
Term
|
Definition
| larger average inv: p or q? |
|
|
Term
|
Definition
| on hand plus on order minus back ordered quantities |
|
|
Term
|
Definition
| the amt of inventory carried in addition to expected demand (mean) |
|
|
Term
|
Definition
| logic of the few having the greatest importance and many having little importance |
|
|
Term
|
Definition
| physical inventory taking technique in which inventory is counted frequently rather than once or twice a year |
|
|
