SCO 3001 – Supply Chain and Operations | Exam 1 | University of Minnesota | Core Concepts
and Practice Q&A
Consolidation DCs (distribution centers) Used to consolidate, or pool, freights that come in
small shipments, but goes out in large shipments
Break-bulk DCs used to take a large shipment into the distribution center and break it into
several small shipments going out
Cross-docking DC used to bring in large shipments and immediately re-sort the goods and
transfer them in smaller lots to several waiting trucks on the side of the DC
Logistic Network consists of one or more factories, shipping to warehouses that in turn ship
to customers
Center-of-gravity analytics used as a first approximation to locate warehouses based on
transportation costs and distances
Third Party Logistics (3PL) A neutral, third-party intermediary in the supply chain that
provides logistics and other support services.
Corporate Strategy A strategy that determines the means for utilizing resources in the
various functional areas to reach the organization's goals
Business Strategy identifies how a division or strategic business unit will compete in its
product or service domain
Quality Objective delivering quality means satisfying customer requirements
, Product imitator objective should emphasize cost as the dominant objective, and operations
should strive to reduce costs through strategic decisions such as superior process technology
Product innovator A firm that develops and sells new or greatly improved products and
services rapidly and effectively
Order winner cause customers in a particular segment that marketing has selected as the
target market to choose a particular product/service
Order Qualifiers characteristics that customers perceive as minimum standards of
acceptability to be considered as a potential for purchase
Market pull market is the primary basis for determining the products a firm should make,
with little regard for existing technology
Technology push Technology is the primary determinant of the products the firm should
make, with little regard for the market.
interfunctional view the product should not only fit the market needs but have a technical
advantage as well
Quality Function Deployment (QFD) A tool for linking customer requirements as defined by
the customer to technical specifications
House of Quality When the matrix is completed
Modular Design the creation of an item in self-contained units, or modules, that can be
combined or interchanged to create different products
and Practice Q&A
Consolidation DCs (distribution centers) Used to consolidate, or pool, freights that come in
small shipments, but goes out in large shipments
Break-bulk DCs used to take a large shipment into the distribution center and break it into
several small shipments going out
Cross-docking DC used to bring in large shipments and immediately re-sort the goods and
transfer them in smaller lots to several waiting trucks on the side of the DC
Logistic Network consists of one or more factories, shipping to warehouses that in turn ship
to customers
Center-of-gravity analytics used as a first approximation to locate warehouses based on
transportation costs and distances
Third Party Logistics (3PL) A neutral, third-party intermediary in the supply chain that
provides logistics and other support services.
Corporate Strategy A strategy that determines the means for utilizing resources in the
various functional areas to reach the organization's goals
Business Strategy identifies how a division or strategic business unit will compete in its
product or service domain
Quality Objective delivering quality means satisfying customer requirements
, Product imitator objective should emphasize cost as the dominant objective, and operations
should strive to reduce costs through strategic decisions such as superior process technology
Product innovator A firm that develops and sells new or greatly improved products and
services rapidly and effectively
Order winner cause customers in a particular segment that marketing has selected as the
target market to choose a particular product/service
Order Qualifiers characteristics that customers perceive as minimum standards of
acceptability to be considered as a potential for purchase
Market pull market is the primary basis for determining the products a firm should make,
with little regard for existing technology
Technology push Technology is the primary determinant of the products the firm should
make, with little regard for the market.
interfunctional view the product should not only fit the market needs but have a technical
advantage as well
Quality Function Deployment (QFD) A tool for linking customer requirements as defined by
the customer to technical specifications
House of Quality When the matrix is completed
Modular Design the creation of an item in self-contained units, or modules, that can be
combined or interchanged to create different products
