Term
| A firm’s strategic objectives are better met when effective supply management: |
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Definition
Ensures timely availability of resources
Reduces total cost (not just purchase price)
Enhances quality
Enables access to technology and innovations
Fosters social responsibility |
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Term
| Total Cost of Ownership (TCO): sum of costs incurred before, during and after a purchase |
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Definition
Before: costs of finding, assessing and selecting a supplier
During: costs of buying and receiving items
After: costs and risks of storing and owning items including those incurred after sale to customers |
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Term
| Level of Supply Risk High, Value to Firm Low |
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Definition
| Bottleneck : Use multiple sources |
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Term
| Level of Supply Risk High, Value to Firm high |
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Definition
| Strategic: Build relationship |
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Term
| Level of Supply Risk Low, Value to Firm high |
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Definition
| Leverage: Consolidate purchases |
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Term
| Level of Supply Risk Low, Value to Firm Low |
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Definition
| Noncritical: increase efficiencies |
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Term
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Definition
| an owned or leased facility that is operated by the firm that owns the products. Gives greatest control but often highest costs, especially fixed cost |
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Term
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Definition
Managed by third party, they often specialize in certain types of commodities and usually have their own specific type of material handling and storage technology.
Offer greater flexibility—firms can change the location, sizes, and number of warehouses relatively quickly and easily
Managers often have greater experience and competency in this area, resulting in lower costs
Lose control over security and operating procedures. |
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Term
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Definition
| 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. |
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Term
| Three basic types of transportation consolidation Market Area |
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Definition
| combine shipments going to different customers in a market area |
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Term
| Three basic types of transportation consolidation Scheduled delivery |
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Definition
| limit shipments for specific areas to selected days of the week |
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Term
| Three basic types of transportation consolidation Pooled Delivery |
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Definition
| 3rd party consolidates for multiple shippers serving the same area |
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Term
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Definition
| Increased logistics cost to obtain increased service |
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Term
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Definition
| Example: Increase transportation cost to reduce inventory |
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Term
| Customer success requires a supplier to: |
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Definition
Have a long-term relationship focus
Comprehensive knowledge of customer needs
Consideration of customer’s customers
Adapt product production and distribution |
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Term
| Customer satisfaction: Satisfaction |
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Definition
| customer’s perceptions and expectations of performance |
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Term
| Customer satisfaction:Perception |
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Definition
| customer’s view of performance and actual performance |
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Term
| Customer satisfaction:Communication |
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Definition
| actual performance and communications about performance |
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Term
| Customer satisfaction:Performance |
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Definition
| Standard and actual performance |
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Term
| Customer satisfaction:Standards |
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Definition
| internal performance and customer expectations |
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Term
| Customer satisfaction:Knowledge |
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Definition
| understanding of customer needs |
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Term
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Definition
| meeting or exceeding customer expectations, including: |
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Term
| Customer Satisfaction: Reliability |
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Definition
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Term
| Customer Satisfaction: Responsiveness |
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Definition
| prompt reply and resolution |
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Term
| Customer Satisfaction: Access |
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Definition
| easy to use communication channels |
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Term
| Customer Satisfaction: Communication |
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Definition
| easy to use communication channels |
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Term
| Customer Satisfaction: Credibility |
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Definition
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Term
| Customer Satisfaction: Security |
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Definition
| low risk and confidential |
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Term
| Customer Satisfaction: Courtesy |
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Definition
| polite, friendly and respectful |
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Term
| Customer Satisfaction: competence |
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Definition
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Term
| Customer Satisfaction: Tangibles |
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Definition
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Term
| Customer Satisfaction: Knowing the Customer |
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Definition
| responsive to unique customer needs |
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Term
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Definition
| square root (2 demand * Order Cost) / (Unit Price *inventory carrying cost) |
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Term
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Definition
| (Avg. Daily Demand)(Lead time) + Safety Stock |
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