Term
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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. |
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Term
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Definition
| When a customer allows the supplier to manage an item or group of items |
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Term
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Definition
| The variability in demand is magnified as we move from the customer to the producer in the supply chain. |
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Term
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Definition
| Staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations. |
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Term
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Definition
| Products such as fashionable clothes and personal computers that typically have a life cycle of just a few months. |
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Term
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Definition
| Moving some of a firm's internal activities and decision responsibility to outside providers. |
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Term
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Definition
| 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 work-in-process; to the purchasing, shipping, and distribution of the finished product. |
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Term
| Total cost of ownership (TCO) |
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Definition
| Estimate of the cost of an item that includes all the costs related to the procurement and use of the item including disposing of the item after its useful life. |
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Term
| Inventory turnover and weeks of supply |
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Definition
| Measures of supply chain efficiency that are mathematically the inverse of one another. |
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Term
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Definition
| The annual cost for a company to produce the goods or services provided to customers. |
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Term
| Average aggregate inventory value |
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Definition
| The total value of all items held in inventory for the firm, valued at cost. |
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Term
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Definition
| A measure of how many weeks' worth of inventory is in the system at a particular point in time. |
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Term
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Definition
| refers to how common the item is and, in relative sense, how many substitutes might be available |
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Term
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Definition
| when retailers respond to a price cut by stocking up, and in some cases buy a year's supply |
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Term
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Definition
| typifies what many manufacturers are doing to smooth the flow of materials through their supply chain |
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Term
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Definition
| a process where the manufacturing process and the underlying technology are mature and the supply base is well established. |
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Term
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Definition
| a process where the manufacturing process and the underlying technology are still under early development and are rapidly changing |
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Term
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Definition
| supply chains that utilize strategies aimed at creating the highest cost efficiency |
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Term
| Risk-hedging supply chains |
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Definition
| supply chains that utilize strategies aimed at pooling and sharing resources in a supply chain so that the risks in supply disruption can be shared |
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Term
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Definition
| supply chains that utilize strategies aimed at being responsive and flexible to the changing and diverse needs of the customers |
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Term
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Definition
| supply chains that utilize strategies aimed at being responsive and flexible to customer needs, while the risk of supply shortages or disruptions are hedged by pooling inventory and other capacity resources |
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Term
| Six Step Process for Green Sourcing |
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Definition
| Assess the opportunity, engage internal supply chain sourcing agents, assess the supply base, develop the sourcing strategy, implement the sourcing strategy, institutionalize the sourcing strategy |
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Term
| request for proposal (RFP) |
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Definition
| used for purchasing items that are more complex or expensive and where there may be a number of potential vendors |
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