Term
| Evolution of Supply Chain Management |
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Definition
1960 - Fragmented
1980 - Evolving Integration [materials management (inbound), logistics, and physical distribution (outbound)]
2000 - Total integration |
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Term
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Definition
| Creator of six-sigma standards. Worked in Japan. |
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Term
| Composition of Logistics Costs |
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Definition
In order from highest % to lowest %:
1. Transportation
2. Inventory Carrying Costs
3. Administration |
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Term
| CSCMP's 22nd Annual State of Logistics Report (2010) |
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Definition
-In 2010, logistics costs increased to $1.211 Trillion USD
-Logistics costs were equivalent to 8.3% of GDP in 2010
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Term
| Significance of Logistics |
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Definition
1. Costs are high
2. Customers are more demanding of the supply chain (desire for quick response and mass customization)
3. Integral part of company strategy (generates revenue, improves profit)
4. Logistical lines are lengthening
5. Logistics is a key to trade and an increased standard of living (law of comparative economic advantage applies)
6. Logistics adds value (time and place utilities) |
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Term
| Logistics/SC Common Areas |
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Definition
1. Manufacturing - most common
2. Environment - causing restrictions
3. Service - emerging opportunities
4. Non-profits - little explored
5. Military - long history
6. Hospitals - service response logistics |
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Term
| Relationship of Logistics to Production |
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Definition
-Coordinates through scheduling and strategy (BTO vs BTS)
-Integral part of the supply chain
->Affects total response time for customers
->Shares activities such as inventory planning
-Costs are in tradeoff
->Production lot quantities affect inventory levels and transportation efficiency
->Production resonce affects tranportation costs and customer service
->Production and warehouse location are interrelated |
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Term
| Objectives of Logistics Strategy |
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Definition
-Minimize cost
-Minimize investment
-Maximize customer service |
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Term
| Six Concepts for Logistics Strategy Formulation |
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Definition
1. Total Cost Concept
-Tradeoff conflicting costs at optimum
2. Differentiated Distribution
-Not all products should be provided the same level of customer service
3. Mixed Strategy
-A pure strategy has higher costs than a mixed strategy
4. Postponement
-Delay formation of the product as long as possible
5. Shipment Consolidation
-Smaller shipment sizes have disproportionately higher transportation costs than larger ones
6. Product Standardization
-Avoid product variety since it adds to inventory |
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Term
| Cost Conflict in Logistics |
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Definition
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Term
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Definition
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Term
| Relationship of Logistics to Marketing and Production |
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Definition
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Term
| Relationship of Logistics to Marketing |
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Definition
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Term
| The Logistics Strategy Triangle |
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Definition
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Term
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Definition
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Term
| Seven Principles of Supply Chain Management |
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Definition
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Term
| Measuring Strategy Performance |
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Definition
(Metrics)
1. Cash flow
2. Savings
3. Return on Investment (ROI) |
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Term
| Most Important Customer Service Elements |
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Definition
1. On-time delivery
2. Order fill rate
3. Product condition
4. Accurate documentation |
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Term
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Definition
1. Transport time
2. Order transmittal time
3. Order processing and assembly time
4. Production time
5. Stock availability |
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Term
| Common Customer Service Mistakes |
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Definition
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Term
| Area Under the Normal Curve |
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Definition
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Term
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Definition
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Term
| Causes of Bullwhip Effect |
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Definition
1. Demand signal not synchronized
2. Order batching
3. Self induced seasonal demand
4. Shortage gaming |
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Term
| Demand Signal Not Synchronized (Cause of Bullwhip Effect) |
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Definition
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Term
| Countermeasures of Demand Signal |
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Definition
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Term
| Order Batching (Cause of Bullwhip Effect) |
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Definition
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Term
| Countermeasures of Order Batching |
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Definition
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Term
| Self Induced Seasonal Demand (Cause of Bullwhip Effect) |
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Definition
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Term
| Countermeasures of Self Induced Demand Seasonality |
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Definition
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Term
| Rationing and Storage Gaming (Cause of Bullwhip Effect) |
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Definition
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Term
| Countermeasures of Rationing and Shortage Gaming |
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Definition
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Term
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Definition
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