BCOR 360 FINAL EXAM WVU STUDY GUIDE
Channel - Answer -A method whereby a business sells its product, e.g. mass retail,
catalog call center or web based electronic storefront
SKU - Answer -A unique unit (form, function) of inventory held in stock.
POS - Answer -The time and place at which a sale occurs, e.g. cash register, or order
confirmation screen on-line.
Stockout - Answer -A situation where no stock is available to fill a customer order.
Supply Chain Management - Answer -The art and science of integrating the flows of
products, information and financials through the entire supply chain from the supplier's
supplier to the customer's customers
RFP - Answer -Bidding on suppliers, request for proposal
RFI - Answer -Focuses on non-price information,request for information
Generics - Answer -Low Risk, Low Value.
Ex: MRO Items
Streamline procurement to reduce costs
Commodoties - Answer -Low Risk, High Value.
Ex: Basic production parts (bolts, bearings), boxes, transportation
Fundamental to finished project
Not unique with little brand distinction
Leverage volume buying with JIT systems
Distinctives - Answer -High Risk, Low Value.
Ex: Engineered (custom) parts. Limited suppliers, long lead times.
Stockouts result in disruption
Change these parts to generic
Criticals - Answer -High Risk, High Value.
Determines the final cost of the product.
Stockouts result in disruption and high customer dissatisfaction.
Improve supplier relations, focus on innovation to improve end product/service value
proposition.
Quality - Answer -Most important selection criteria
Product durability, product reliability, ease of repair/use, maintenance requirements
, Reliability (selection criteria) - Answer -On time delivery is the second most important
factor Delivery history, performance history
Risk - Answer -Variations in lead time
Variations in purchase cost
Capability (selection criteria) - Answer -Technical, management and control, ability to
provide product consistently
Financial Considerations - Answer -Supplier's financial position, particularly important
with transportation
Strategic Sourcing - Answer -Solutions best for firms with high spend = $50 million
Supply Chain Sustainability - Answer -A concept that industrial systems must be in
harmony with nature by not depleting resources beyond their replacement/regeneration
rate with special emphasis upon reducing wasteful practices
Dead Head - Answer -Driving an empty truck to pick up a load
Reverse Logistics System - Answer -Goods and materials moving upstream in the
supply chain
Safety Stock - Answer -Inventory a company holds above normal needs as a buffer
against delays in receipt of supply or changes in consumer demand
S&OP - Answer -A strategic process used to reconcile conflicting business function
objectives and arrive at a consensus cross-functional/inter-departmental forecast
CPFR - Answer -Allows trading partners to agree on a single forecast for an item.
Requires sharing of POS data and forecast between retailer and trading partners.
Supply > Demand - Answer -Reduce price
Demand > Supply - Answer -Increase price
Bricks and Mortar - Answer -Retail business selling through a physical location
Clicks and Mortar - Answer -A brick-and-mortar retailer that has expanded its presence
online
Broken Case - Answer -An open case. Also, used to refer to an area in a DC in which
materials are picked in that form
Eaches - Answer -Single items taken from a larger pack or case
Channel - Answer -A method whereby a business sells its product, e.g. mass retail,
catalog call center or web based electronic storefront
SKU - Answer -A unique unit (form, function) of inventory held in stock.
POS - Answer -The time and place at which a sale occurs, e.g. cash register, or order
confirmation screen on-line.
Stockout - Answer -A situation where no stock is available to fill a customer order.
Supply Chain Management - Answer -The art and science of integrating the flows of
products, information and financials through the entire supply chain from the supplier's
supplier to the customer's customers
RFP - Answer -Bidding on suppliers, request for proposal
RFI - Answer -Focuses on non-price information,request for information
Generics - Answer -Low Risk, Low Value.
Ex: MRO Items
Streamline procurement to reduce costs
Commodoties - Answer -Low Risk, High Value.
Ex: Basic production parts (bolts, bearings), boxes, transportation
Fundamental to finished project
Not unique with little brand distinction
Leverage volume buying with JIT systems
Distinctives - Answer -High Risk, Low Value.
Ex: Engineered (custom) parts. Limited suppliers, long lead times.
Stockouts result in disruption
Change these parts to generic
Criticals - Answer -High Risk, High Value.
Determines the final cost of the product.
Stockouts result in disruption and high customer dissatisfaction.
Improve supplier relations, focus on innovation to improve end product/service value
proposition.
Quality - Answer -Most important selection criteria
Product durability, product reliability, ease of repair/use, maintenance requirements
, Reliability (selection criteria) - Answer -On time delivery is the second most important
factor Delivery history, performance history
Risk - Answer -Variations in lead time
Variations in purchase cost
Capability (selection criteria) - Answer -Technical, management and control, ability to
provide product consistently
Financial Considerations - Answer -Supplier's financial position, particularly important
with transportation
Strategic Sourcing - Answer -Solutions best for firms with high spend = $50 million
Supply Chain Sustainability - Answer -A concept that industrial systems must be in
harmony with nature by not depleting resources beyond their replacement/regeneration
rate with special emphasis upon reducing wasteful practices
Dead Head - Answer -Driving an empty truck to pick up a load
Reverse Logistics System - Answer -Goods and materials moving upstream in the
supply chain
Safety Stock - Answer -Inventory a company holds above normal needs as a buffer
against delays in receipt of supply or changes in consumer demand
S&OP - Answer -A strategic process used to reconcile conflicting business function
objectives and arrive at a consensus cross-functional/inter-departmental forecast
CPFR - Answer -Allows trading partners to agree on a single forecast for an item.
Requires sharing of POS data and forecast between retailer and trading partners.
Supply > Demand - Answer -Reduce price
Demand > Supply - Answer -Increase price
Bricks and Mortar - Answer -Retail business selling through a physical location
Clicks and Mortar - Answer -A brick-and-mortar retailer that has expanded its presence
online
Broken Case - Answer -An open case. Also, used to refer to an area in a DC in which
materials are picked in that form
Eaches - Answer -Single items taken from a larger pack or case
