Download Final Review | MGMT - Supply Chain Management 1 - Introduction and more Quizzes Supply Management in PDF only on Docsity!
Modes of Transportation/Types of Carriers:
Motor Carries
are the most flexible mode of transportation and account for more than one-third of all U.S. for hire transportation expenditures TERM 2
Rail Carriers
DEFINITION 2 compete most favorably when the distance is long and the shipments are heavy and bulky TERM 3
Air Carriers
DEFINITION 3
- transporting goods by air is very expensive relative to other modes, but also very fast, particularly for long distance TERM 4
Water Carriers
DEFINITION 4 is very inexpensive but also very slow and infliexible TERM 5
Pipeline Carriers
DEFINITION 5 are very specialized with respect to the products they can carry; however, once the initial investment of the pipeline is recovered, there is very little additional maintence cost, so long-term pipeline transportation tends to be very inexpensive
Six Sigma
this stresses a commitment by the firms top management to enable the firm to identify customer expectations and excel in meeting and exceeding those expectations. A type of TQM method devised by Motorola TERM 7
Lean Production
DEFINITION 7 organizing work and analyzing the appropriateness of currently operatin machines, warehouses, and systems to fit a lean process flow. The goals are to reduce production throughput times and inventory levels, cut order lead times, increase quality, and improve customer responsiveness with fewer people and other assests. TERM 8
The 5 S's
DEFINITION 8 The idea of implementing the five ss is the workplace will be cleaner, more organized, and safer, thereby reducing processing waste and improving productivity. TERM 9
Sorting and Simplifying
DEFINITION 9 are to eliminate searching for parts and tools, avoid unnecessary movements, and avoid using the wrong tools or parts TERM 10
Sweep
DEFINITION 10 refers to proper workplace cleaning and maintenance.
Customer Service to the warehouse
-as centralization increases, customer service levels provided by suppliers is likely to increase, reducing the likelihood of stockouts for a given level of average system warehouse inventory. TERM 17
Transportation costs
DEFINITION 17 as centralization increases, outbound transportation costs increase as LTL shipments must travel further to reach customers TERM 18
Warehouse system operating costs
DEFINITION 18 as centeralization increases, total operating costs decrease because there are fewer warehouses, fewer employeesm less equipment, and less maintenance costs. TERM 19
Types of Warehouses
DEFINITION 19 Private warehouses- refer to warehouses that are owned by the firm storing the goods Public warehouses- are for-profit organizations that contract or lease various warehousing and distribution services to other companies TERM 20
Predicting Customer Behaviors
DEFINITION 20 These predictions allow firms to forecast which products customers are likely to purchase next and how much they are willing to pay.In this way, companies can revise pricing policies, offer discounts, and design promotions to specific customer segments
Segmenting Customers
(group customers in varieties of ways so that specialized communications about their products can be directed to specific customer groups. Customer segmentation can occur based on sales territory or region, preferred sales channel, profitability, products purchased, sales history, demographic information, desired product features, and service preferences) TERM 22
Predicting Customer Behaviors
DEFINITION 22 ( by understanding customers purchasing behaviors, future behaviors can be predicted) TERM 23
Customer Value
Determination
DEFINITION 23 ( By integrating with ERP systems, capturing customer profitability information is possible for many businesses) TERM 24
Personalizing Customer Communications
DEFINITION 24 (knowledge of customers, their behaviors, and their preferences allows firms to customize communications aimed at specific groups of customers) TERM 25
Automating sales force tools
DEFINITION 25 ( products are used for documenting field activities, communicating with the home office, and retrieval of sales history and other company specific documents in the field)
Generic Competitive Strategies- 3. Focus
Strategy
This incorporates the idea that a service can serve a narrow target market or niche better than other firms that are trying to serve a broad market. TERM 32
Primary Concerns of Service- 1. Service
capacity-
DEFINITION 32 The number of customers per day the firms service delivery systems are designed to serve, although it could also be some other period of time such as customers per hour or customers per shift. TERM 33
Primary Concerns of Service- 3. Distribution
Channels-
DEFINITION 33 defines the way products and services are delivered to customers. TERM 34
Primary Concerns of Service- 1. Service
quality-
DEFINITION 34 it includes many elements for example, because of health and safety concerns, pharmacies are under intense pressure to provide high quality services customers. TERM 35
Primary Concerns of Service-2. Waiting Times
DEFINITION 35 Time spent by customers who are waiting for service.
Perceived Waiting Times
customers perceive the wait time to be much longer or shorter than it really is TERM 37
Customer Relationship Management (CRM
DEFINITION 37 to manage the firms customer base so that customers remain satisfied and continue to purchase goods and services TERM 38
Vendor Managed Inventory
DEFINITION 38 A progressive partner-based approach to controlling inventory and reducing supply chain costs. Customers provide information to the key supplier, including historical usage, current inventory levels, minimum and maximum stock levels, sales forecasts, and upcoming promotions, who then takes on the responsibility and risk for planning, managing, and monitoring the replenishment of inventory. The supplier may even own the inventory until the product is sold. TERM 39
Price Fluctuations
DEFINITION 39 Special promotions Quantity discounts Other special pricing discounts TERM 40
Activities Causing Bullwhip Effect
DEFINITION 40 Demand forecasting updating (changing the method used to calculate the forecast) Order batching ( when small orders are combined into one large order this amplifies demand variability, adds to the use of safety stock, creating the bullwhip effect) Price fluctuationRationing and shortage gaming (this can occur when demand exceeds a suppliers finished goods available, and in this case, the supplier may allocate product in proportion to what buyers ordered)
