| Term | Definition |
|---|
| Supply Chain | The sequence of organization, ther facilities/functions/activities, that are involved in producing and delivering a product or service. |
| Functions of a Supply Chain | Forecasting, Purchasing, Inventory Management, Information Mngmt. Quality Assurance, Scheduling, Production, Distribution, Delivery |
| Movement of Materials | Physical moving of materials, in the direction of the end of the chain. |
| Movement of Information | Exchange of information, moving in both directions along the chain. |
| Value Chain | Two kinds of movement (physical and information exchange) where value is added as goods or services progress through the chain. |
| Supply | This component starts at the beggining and ends with the internal operations of the organization. |
| Demand | Componet that starts at the point where the organization's output is delivered to its immediate customer and ends with the final customer in the chain. |
| Bullwhip Effect | Inventory stockpiles become progressively larger looking background through the chain and increases inventory costs. |
| Benefits of a Supply Chain | Lower Inventories, Shorter Lead Times, Higher Profits, Greater Customer loyalty, Greater agility, Higher productivity. |
| Elements of a Supply Chain | Customers, Forecasting, Design, Processing, Inventory, Purchasing, Inventory, Suppliers, Location, Logistics. |
| Logistics | The movement of materials and information in a supply chain and (includes movement within a facility, overseeing incoming and outgoing shipments of goods and materials, information flow throughout the supply chain. |
| Traffic Management | Oversees the shipment of incoming and outgoing goods, which include: shipping schedules, methods of shipping, shipping costs and government regulations, external factors that may cause delays. |
| DRP | A system for inventory management and distribution planning. It is also used by management to plan and coordinate transportation, warehousing, workers, equipment, and financial flows. |
| EDI (Electronic Data Interchange) | Direct computer to computer transmission of interorganizational transactions that include purchase orders/shipping notices/debit and credit memos. |
| E-Commerce | The use of electronic technology to facilitate business transactions; applications inclide internet buying/selling, EDI, E-mail and etc... |
| CPFR (Collaborative Planning, Forecasting, and Replenishment) | Focuses on information sharing among supply chain trading partners in planning, forecasting, and inventory replenishment |
| Supply Chain Performance Drivers | Quality, Cost. Flexibility (ability to adjust to changes in order quantities and to change in product service requirements). These steps address what? |
| Inventory Velocity | The rate at which material goes through the supply chain. The faster materials pass throught, the lower the costs, and quicker it gets to the customer. |
| Information Velocity | The rate at which information is communicated in a supply chain. The quicker information is available, the better the decisions will be in their part of the supply chain. |
| Purchasing | Responsible for obtaining the materials, parts, and supplies and services needed to produce a product or provide a service. Goal is to develop and implement purchasing plans for products/services. Duties include: identifying sources of supply, negotiating contracts, maintaining database of suppliers etc. |
| Centralized Purchasing | Purchasing is handled by one special department. May be able to obtain lower prices by combining orders. Assign categories to specialists etc. |
| Decentralized Purchasing | Individual departments or separate locations handle their own purchasing requirements. Aware of and better response to differing local needs. Quicker response and effective when locations are widely scattered. |
| Value Analysis | Examination of the function of purchased parts and materials in an effort to reduce cost and/or improve performance. |
| Step 1 in CPFR | Front-end agreement between major partners |
| Step 2 in CPFR | Develop joint business plan |
| Step 3-5 in CPFR | Sales forecast collaboration (share replenishment plans) |
| Steps 6-8 in CPFR | Order forecast collaboration (share replenishment plans) |
| Step 9 in CPFR | Order generation/delivery execution (results data are shared, issues are indentified/resolved) |
Combine with other sets
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