Answers
Advertising revenue model - CORRECT ANSWER-Provides users with information on services and
products and provides an opportunity for suppliers to advertise
Affiliate revenue model - CORRECT ANSWER-Companies receive a referral fee for directing business to an
affiliate
Appraisal cost - CORRECT ANSWER-The cost associated with uncovering defects
Automated order entry systems - CORRECT ANSWER-A method using telephone models to send digital
orders to suppliers.
Backwards integration - CORRECT ANSWER-Owning or controlling sources of raw materials and
components.
Benchmarking - CORRECT ANSWER-Studying other companies business practices for comparison.
Bullwhip effect - CORRECT ANSWER-Inaccurate or distorted demand information created in the supply
chain.
Business to Business commerce - CORRECT ANSWER-Businesses buying and selling to other businesses.
Business to consumer commerce - CORRECT ANSWER-Businesses selling to individual consumers.
Cause and effect diagrams - CORRECT ANSWER-A chart that identifies potential causes of particular
quality problems.
Checklist - CORRECT ANSWER-A list of common defects and the number of observed occurrences of
each.
, Conformance to specifications - CORRECT ANSWER-how well a product or service meets the targets and
tolerances set by designers.
Continuous improvement - CORRECT ANSWER-A philosophy of never ending improvement.
Control charts - CORRECT ANSWER-Charts used to evaluate whether a process is operating within
expectations.
Crossdocking - CORRECT ANSWER-Eliminates storage and order picking functions of a distribution
warehouse.
Customer defined quality - CORRECT ANSWER-an integrated effort designed to improve quality
performance at every level of the organization.
Deming Prize - CORRECT ANSWER-Japanese award for companies to recognize efforts in quality
improvement.
Distribution management - CORRECT ANSWER-Responsible for the movement of material from the
manufacturer to the customer.
Distribution warehouse - CORRECT ANSWER-Used for short term storage, consolidation, and product
mixing.
Distributor crossdocking - CORRECT ANSWER-the receiving and consolidating of inbound products from
different vendors into a multi-SKU pallet.
E-commerce - CORRECT ANSWER-Using the internet and web to do business.
E-distributors - CORRECT ANSWER-Independently owned net marketplaces having catalogs representing
thousands of suppliers and designed for spot purchases.