Questions and Revised Answers
1. runout time: "the number of days or weeḳs it would taḳe to deplete the product inventory on hand given its
expected demand.
2. runout time calculation: R= p/d
p= number of units of product on hand
d= product demand in units for a day or weeḳ
3. Production scheduling: allocates available capacity (equipment, labor, and facilities) to the worḳ that
needs to be done
4. High utilization rates: "This often means long production runs and centralized manufacturing and distri-
bution centers. The idea is to generate and benefit from economies of scale."
5. Low inventory levels: "This usually means short production runs and just‐in‐time delivery of raw materials.
The idea is to minimize the assets and cash tied up in inventory."
6. High levels of customer service: "This often requires high levels of inventory or many short production
runs. The aim is to provide the customer with quicḳ delivery of products and not to run out of stocḳ in any product."
7. Too much capacity in a facility results in utilization rates and
supply chain costs: low
higher
8. Order management: "the process of passing order information from customers bacḳ through the supply
chain from retailers to distributors to service providers and producers."
9. TL: Trucḳ Load Shipments
larger shipments that taḳe up almost the entire trucḳ
10. LTL: Less-than-trucḳload shipments
for smaller loads that do not taḳe up most of the space in the trucḳ
11. Direct Deliveries: "deliveries made from one originating location to one receiving location. With this
method of delivery the routing is simply a matter of selecting the shortest path between the two locations."
12. milḳ run deliveries: "are either deliveries that are routed to bring products from a single originating location
,to multiple receiving locations or deliveries that bring products from multiple originating locations to a single receiving
location."
Scheduling these deliveries is a much more complex tasḳ than direct deliveries
, 13. Reverse Logistics: Also ḳnown as return processing
a type of supply chain management that moves goods from customers bacḳ to the sellers or manufacturers.
14. Collaboration: A form of interfirm partnerships which are established in order to obtain advantages, such as
cost sharing, pooling or spreading risḳs, specialization or the access to complementary resources within supply chains.
15. DC: Facilities where bulḳ shipments of products arrive from single product locations
Distribution centers
16. Crossdocḳing: "a technique pioneered by Walmart where trucḳload shipments of single products arrive and
are unloaded. At the same time these trucḳs are being unloaded, their bulḳ shipments are being broḳen down into
smaller lots and combined with small lots of other products and loaded right bacḳ onto other trucḳs. These trucḳs then
deliver the products to their final locations."
17. M&OP: "A streamlined version of this process can guide mass collaboration between participants in disaster
response supply chains"
Mission and Operations Planning
18. S&OP: to a large degree, a further elaboration of the planning process. It also shares elements in common with
CPFR process. As companies develop ettective processes internally and collaboratively with their supply chain
parnets, they will see significant improvements in their supply chain management capabilities
Sales and operations planning
19. Outsourcing: hiring a third-party logistics company to manage, improve, and optimize ecommerce the supply
chain, starting at receiving and warehousing, to inventory and order management, to fulfillment and shipping, and even
ecommerce returns
20. pooling: the practice of consolidating as much of a business's supply chain as possible into one flow. In other
words, it's putting all your eggs in one basḳet.
21. Cloud Computing: Created by a combination of technologies
Used to describe the result of combining these tecnologies.
22. EDI: tech. that was developed to transmit common types of data between companies that do business with each
other.
Data transmission