CHAPTER 16 OMGT 6213 EXAM 2
STUDY GUIDE
Strategic sourcing - Correct Answers -The development and management of supplier
relationships to acquire goods and services in a way that aids in achieving the needs of
a business.
Bullwhip effect - Correct Answers -The variability in demand becomes increasingly
magnified as it moves upstream from the customer to the producer in the supply chain.
This happens when supply chain members are not well-synchronized, causing small
changes in consumer demand to create much larger swings in orders, inventory levels,
shortages, and delays further up the chain.
Forward buying - Correct Answers -A term that refers to when a customer, responding
to a promotion, buys far in advance of when an item will be used.
Continuous replenishment - Correct Answers -A program for automatically supplying
groups of items to a customer on a regular basis.
Efficient supply chains - Correct Answers -These are supply chains that utilize
strategies aimed at creating the highest levels of cost efficiency.
Risk-hedging supply chains - Correct Answers -These are supply chains that utilize
strategies aimed at pooling and sharing resources in a supply chain so that the risks in
supply disruption can be shared.
Responsive supply chains - Correct Answers -These are supply chains that utilize
strategies aimed at being responsive and flexible to the changing and diverse needs of
the customers.
Functional products - Correct Answers -Staples that people buy in a wide range of retail
outlets, such as grocery stores and gas stations.
Innovative products - Correct Answers -Products such as fashionable clothes and cell
phones that may have a life cycle of just a few months.
Supply Chain Uncertainty Framework - Correct Answers -Four types: Efficiency, Risk
Hedging, Responsive, Agile.
Build-to-order - Correct Answers -A process used by companies to meet specific
customer requirements.
STUDY GUIDE
Strategic sourcing - Correct Answers -The development and management of supplier
relationships to acquire goods and services in a way that aids in achieving the needs of
a business.
Bullwhip effect - Correct Answers -The variability in demand becomes increasingly
magnified as it moves upstream from the customer to the producer in the supply chain.
This happens when supply chain members are not well-synchronized, causing small
changes in consumer demand to create much larger swings in orders, inventory levels,
shortages, and delays further up the chain.
Forward buying - Correct Answers -A term that refers to when a customer, responding
to a promotion, buys far in advance of when an item will be used.
Continuous replenishment - Correct Answers -A program for automatically supplying
groups of items to a customer on a regular basis.
Efficient supply chains - Correct Answers -These are supply chains that utilize
strategies aimed at creating the highest levels of cost efficiency.
Risk-hedging supply chains - Correct Answers -These are supply chains that utilize
strategies aimed at pooling and sharing resources in a supply chain so that the risks in
supply disruption can be shared.
Responsive supply chains - Correct Answers -These are supply chains that utilize
strategies aimed at being responsive and flexible to the changing and diverse needs of
the customers.
Functional products - Correct Answers -Staples that people buy in a wide range of retail
outlets, such as grocery stores and gas stations.
Innovative products - Correct Answers -Products such as fashionable clothes and cell
phones that may have a life cycle of just a few months.
Supply Chain Uncertainty Framework - Correct Answers -Four types: Efficiency, Risk
Hedging, Responsive, Agile.
Build-to-order - Correct Answers -A process used by companies to meet specific
customer requirements.
