GMS 401 CHP9 Supply Chain Management Questions and Answers 100% Verified

Blanket order - A long term purchase commitment to a supplier for items that are to be delivers against short term releases to ship make or buy decision - a choice between producing a component or service in house or purchasing it from an outside source Outsourcing - Transferring a firms activities that have traditionally been internal to external suppliers Vertical Integration - Developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor kieretsu - A Japanese term that describes suppliers who become part of a company coalition Virtual companies - Companies that rely on a variety of supplier relationships to provide services on demand Also known as hollow corporations or network companies Bullwhip effect - The increasing fluctuation in orders that often occurs as orders move through the supply chain Pull data - Accurate sales data that initiate transactions to "pull" product through the supply chain. Single stage control of replenishment - Fixing responsibility for monitoring and managing inventory for the retailervendor managed inventory - A system in which a supplier maintains material for the buyer, often delivering directly to the buyer's using department Collaborative, planning, forecasting and replenishment (CPFR) - A joint effort of members of a supply chain to share information in order to reduce supply-chain costs Postponement - Delaying any modifications or customization to a product as long as possible in the production process Drop shipping - Shipping directly from the supplier to the end customer rather than from the seller, saving both to,e and reshipping costs Pass through facility - A facility that expedites shipment by holding merchandise and delivering from shipping hubs Channel assembly - A system that postpones final assembly of a product so the distribution channel can assemble it Eprocurement - Purchasing facilitated through the Internet electronic data interchange (EDI) - A standardized data transmittal format for computerized communications between organizations