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independent demand
demand that is random and unpredictabledemand not linked
to another scheduled product or event
TERM 2
dependent demand
DEFINITION 2
demand that is directly related to scheduled product or
eventrequirements that can be predicted by knowing the
schedule or demand for the related product or event
TERM 3
total acquisition cost
DEFINITION 3
sum of all relevant annual inventory costs
TERM 4
holding costs
DEFINITION 4
associated with storing and assuming risk of having inventory
TERM 5
ordering costs
DEFINITION 5
associated with placing orders and receiving supply
managing cycle
stock
reducing order quantities
TERM 7
managing safety
stock
DEFINITION 7
manage service levels, ABC analysis, and reducing variation
TERM 8
Global trade item number
(GTIN)
DEFINITION 8
Identification system for finished goods sold to consumers
TERM 9
part numbr
DEFINITION 9
unique identifier used by a specific firm
TERM 10
cycle counting
DEFINITION 10
inventory is physically counted on a routine schedule
bullwhip effect
variation increases upstream in the supply chain
TERM 12
vendor managed inventory
(VMI)
DEFINITION 12
the vendor is responsible for managing inventory for the
customer
TERM 13
collaborative planning, forecasting and
replenishment (CPFR)
DEFINITION 13
supply chain partners sharing information
TERM 14
customer service management
DEFINITION 14
design and execution of the processes that provide
customers with products and services they desire
TERM 15
product availability
DEFINITION 15
inventory available when and where desired by customer
lead time
time between star and end of an activity
TERM 17
service reliabilty
DEFINITION 17
performance of all order related activities error free
TERM 18
the perfect order
DEFINITION 18
delivered without failure in any order attribute
TERM 19
customer satisfaction
DEFINITION 19
meeting or exceeding customer expectations
TERM 20
reliability
DEFINITION 20
performance as promised
responsiveness
prompt reply and resolution
TERM 22
access
DEFINITION 22
easy to use communication channels
TERM 23
communication
DEFINITION 23
proactive provision of information
TERM 24
credibility
DEFINITION 24
believable and honest
TERM 25
security
DEFINITION 25
low risk and confidential
courtesy
polite, friendly and respectful
TERM 27
competence
DEFINITION 27
able to perform
TERM 28
tangibles
DEFINITION 28
physical appearance
TERM 29
knowing the customer
DEFINITION 29
responsive to unique customer needs
TERM 30
long term relationship focus, knowledge of
needs, consider customers customers, adapt
product and distribution
DEFINITION 30
customer success requires a supplier to: (4)
customer relationship management (CRM)
technology is useful in data gathering about customers to
develop strategic relationships
TERM 32
supply management
DEFINITION 32
IDENTIFICATION, ACQUISITION AND MANAGEMENT of inputs
and supplier relationships
TERM 33
timely availability of resources, reduced total
cost, enhances quality, access to technology,
social responsibility
DEFINITION 33
a firms strategic objectives are better met when effective
supply management:
TERM 34
supply risk
DEFINITION 34
probability of an unplanned event that negatively affects a
firm and its ability to serve customers
TERM 35
total cost of ownership
(TCO)
DEFINITION 35
sum of costs incurred before, during, and after a purchase
finding, assessing, and selecting supplier
costs before a purchase is made
TERM 37
buying and receiving
items
DEFINITION 37
costs during a purchase
TERM 38
risks of storing and owning
items
DEFINITION 38
costs after a purchase has been made
TERM 39
social responsibilty
DEFINITION 39
behaviors that benefit related communities
TERM 40
insourcing
DEFINITION 40
inputs from within the firm
outsourcing
inputs from outside the firm
TERM 42
make or buy decision
DEFINITION 42
choosing between insourcing or outsourcing
TERM 43
supply base otimization
DEFINITION 43
number of suppliers to use
TERM 44
sourcing strategies
DEFINITION 44
capabilities and location are important
TERM 45
transaction oriented relationships
DEFINITION 45
maintain independencefocus on priceshort termhoard
informationbuyer-seller relations
collaborative relationships
mutual dependencefocus on total costlong termshare
informationcross functional relations
TERM 47
competitive bidding
DEFINITION 47
price is most important factor, specifications are clear, high
value, several equally qualified sources
TERM 48
Request for proposal (RFP) or quote
(RFQ)
DEFINITION 48
describes what customer wants; supplier responds with cost
and other data for consideration
TERM 49
weighted point model
DEFINITION 49
establishes performance categories that are weighted by
importance
TERM 50
online reverse
auctions
DEFINITION 50
suppliers bid in real time for buyer's business
supplier scorecard
a common way of giving suppliers feedback
TERM 52
supplier audits
DEFINITION 52
purchasing personnel conduct extensive visits to and review
of suppliers processes and systems, thereby evaluating their
ability to consistently generate quality products in a timely
fashion
TERM 53
supplier certification
DEFINITION 53
programs, once a supplier meets certain standards set by the
firm (i.e., it is certified), the buyer can then dispense with
detailed receiving procedures and inspections, thus
eliminating bottlenecks at the receiving dock and reducing
inventories and the resources that they consume.
TERM 54
logistics management
DEFINITION 54
movement and storage of materials to meet customer needs
and organizational objectives
TERM 55
total landed cost
DEFINITION 55
sum of all product and logistics related costs
product movement
provides closure to order cycles by moving goods and
materials from origin to destination
TERM 57
product storage
DEFINITION 57
permits a transportation vehicle to serve as temporary
storage
TERM 58
economy of scale
DEFINITION 58
cost per unit of weight decreases as shipment size increases
TERM 59
economy of distance
DEFINITION 59
cost per unit traveled decreases as distance moved
increases
TERM 60
consolidation
DEFINITION 60
one large shipment made of many smaller shipments
consolidation by market area
combine small shipments from one shipper going to the
same area
TERM 62
pooled delivery
DEFINITION 62
combine small shipments from different shippers going to
the same area
TERM 63
scheduled delivery
DEFINITION 63
delivery at specific times
TERM 64
economic regulation
DEFINITION 64
attempt to make transportation services equally accessible
and economical to all
TERM 65
common carrier
DEFINITION 65
legally obligated to offer transportation service at all
nondiscriminatory prices to the general public
contract carrier
specific services are contracted between the shipper and the
carrier
TERM 67
provate carrier
DEFINITION 67
a shipper or cosignee that owns and provides its own
transportation
TERM 68
reverse logistics
DEFINITION 68
material moves upstream in the supply chain
TERM 69
value added services
DEFINITION 69
providing additional value to the customer, such as
postponement
TERM 70
private
ownership
DEFINITION 70
an owned or leased facility that is operated by the firm that
owns the productsgreatest control but often highest costs
public
ownership
managed by third party, they often specialize in certain
types of commodities and usually have their own specific
type of material handling the storage technology
TERM 72
contract
ownership
DEFINITION 72
a firm and a contract warehouse operator enter into a long
term agreement to share the cost and risk of building and
running a warehouse
TERM 73
integrated service provider
DEFINITION 73
provide a broad range of logistic services
