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94 Cards in this Set
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- Back
Supply Chain |
Global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash. Supply chains whatdon't have to be global |
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What are the 3 entities of a supply chain |
Supplier, producer (nucleus firm/company), and customers |
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What are 3 characteristics of a stable supply chain stage |
Predictable supply and demand
Low cost due to predictable demand and minimal charges
Production runs are long with few line changes |
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What are 3 characteristics of a reactive supply chain stage |
Fulfills demand but without much concern as to cost
Is perceived as a cost center
Needs minimal competitive or connectivity technologies and capital assets to respond to demand |
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What are the 5 stages of a supply chain |
Stable, reactive, reactive efficient, proactive efficient, strategic driver |
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Benefits to lateral supply chain |
Achieve economies of scale and scope
Improve business focus and expertise
Leverage communications and production competencies
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What are the 4 stages of the supply chain management evolution |
Stage 1: multiple dysfunctional Stage2: semifunctional enterprise Stage 3: integrated enterprise Stage 4: extended enterprise |
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What are 3 characteristics of the reactive efficient stage of the supply chain? |
Supports competitive positioning by servicing as an efficient, low cost, and integrated unit
Focuses efficiency and cost management on the total delivered COFG
Places more importance on connectivity technology and new equipment to automate functions to reduce labor cost and improve capacity and throughput |
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What are 3 characteristics of the proactive efficient stage of the supply chain? |
Recommends new raw materials or product designs to reduce complexity and cost
Instigates changes to product designs
Invest in integrated information systems to facilitate sharing of info |
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What are the 4 characteristics of the strategic drive stage of the supply chain? |
Demand generation and fulfillment are fully integrated
The supply chain contributed to development of the orgs overall strategy
Forecasting, planning, and replenishment are fully integrated and visible
Technological improvements, knowledge, and real time info are shared with chain partners |
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What 4 basic flows connect the supply chain entities? |
Flow of info
Primary product flow
Primary flow of cash
Reverse flow of products returned |
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Service Industry |
An organization that provides an intangible product such as medical or legal advice |
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SCOR Model: Supply chain operations reference |
The main focus of the model is on the supply chain's management processes: plan, source, make, deliver, return, and enable. |
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Vertical integration |
Refers to the practice of bringing the supply chain inside one organization. The primary benefit is control |
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Lateral supply chain management |
When companies turn to outsourcing various activities and deal separately with supplier and customers. Allowing the companies to focus on their core competencies and deal with each other through discrete transactions or long term contracts. This is replacing vertical integration. |
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Keiretsu |
Japanese term; intermediate form of integration where companies largely remain legally and economically independent even though they work closely in various ways. A member usually owns limited amount of stock in other member companies |
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Multiple dysfunction |
The (potential) nucleus company lacks clear internal definitions and goals and has no external links other than transactional ones |
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Semifunctional enterprise |
The nucleus company takes initiatives to improve effectiveness, efficiency, and quality within fictional areas |
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Integrated enterprise |
The company that breaks down silo walls and brings functional areas together in processes such as sales and operations planning with a focus on company wide processes rather than individual functions |
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Extended enterprise |
The company integrates its internal network with the internal networks of selected supply chain partners to improve efficiency, product/service quality, or both. |
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Supply chain management |
The design, planning, execution, control, and monitoring of supply chain activities with the objectives of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally |
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Value chain |
The functions within a company that add value to the goods or services that the organization sells to customers and for which it receives payment |
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Value stream mapping |
A lean production tool to visually understand the flow of materials from supplier to customer that includes the current process and flow as well as the value added and non value added time of all the process steps |
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5 objectives of supply chain management |
Add value for customers and stakeholders
Improve customer service
Effectively use systemwide resources
Efficiently use systemwide resources
Leverage partner strengths |
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Value |
The worth of an item, good, or service |
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Value |
The worth of an item, good, or service |
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Value added |
The actual increase of utility from the viewpoint of the customer as a part is transformed from raw material to finished inventory. It is the contribution made by an operation of a plant to the final usefulness and value of a product as seen by the customer |
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Triple bottom line (tbl) |
The concept that corporate success should be measured in 3 dimensions; economic, social, and environmental- and not only the traditional bottom line of relative profitability |
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Primary stakeholder |
An any business activity it is the business itself. A business must be profitable to survive and create value for any other stakeholder |
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Customers |
Significant stakeholders in supply chain |
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External stakeholders |
Public or private investors, lenders, and communities and governments |
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Sustainability |
Activities that provide present benefit without compromising the needs of future generations |
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Green supply chain |
A supply chain that considers environmental impacts on its operations and takes action along the supply chain to comply with environmental safety regulations and communicate this to customers and partners |
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Inventory optimization software |
A computer application having the capability of finding optimal inventory strategies and policies related to customer service and return on investment over several echelons of supply chain |
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Return on investment |
A relative measure of financial performance that provides a means for comparing various investments by calculating the profits returned during a specified time. |
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Return on assets |
Net income for the previous 12 months divided by total assets |
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Market driven |
In a competitive economy making money depends upon responding to customers' needs |
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Reverse supply chain |
The planning and controlling of the processes of moving goods from the point of consumption back to the point of origin for repair, reclamation, recycling, or disposal |
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What are the major processes of SCOR |
Plan, source, make, delivere, return, enable |
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Customer service |
The ability of a company to address the needs, inquiries, and requests from customers |
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Availability |
The ability to have the product when it is wanted by a customer |
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Operational performance |
Deals with the time needed to deliver a customer order |
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Customer satisfaction |
Takes into account customer perceptions, expectations, and opinions based on the customer's knowledge and experience |
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Customer satisfaction |
Takes into account customer perceptions, expectations, and opinions based on the customer's knowledge and experience |
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Efficiency |
A measurement of the actual output to the standard output expected |
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Customer satisfaction |
Takes into account customer perceptions, expectations, and opinions based on the customer's knowledge and experience |
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Efficiency |
A measurement of the actual output to the standard output expected |
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Capacity |
1) The ability of a system to perform its expected function
2) The capability of a worker, machine, work center, plant, or organization to produce output part time. |
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Partnership |
A relationship based on trust, shared risk, and rewards aimed towards achieving a competitive advantage |
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What are the three V's? |
Visibility, velocity, variability |
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Visibility |
The ability to view important information throughout a facility or supply chain no matter where in the facility or supply chain the information is located |
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Velocity |
A term used to indicate the relative speed of all transactions collectively within a supply chain community |
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Variability |
The natural tendency of the results of all business activities to fluctuate above and below an average value, such as fluctuations around average time to completion, average number defects, average daily sales, or average production yield |
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Bullwhip effect |
An extreme change in the supply position upstream that is generated by a small change in demand downstream in the supply chain |
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Variety |
The mix of products and services in a portfolio that must alter to meet changes in customer demand |
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Volume |
The amount of product being produced in a given time |
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Supply chain risk |
The variety of possible events in their outcomes that could have a negative effect on the flow of goods, services, funds, or information resulting in some level of quantitative or qualitative loss for the supply chain |
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Risk management |
The process of identifying risks, and analyzing exposures to risk, and determining how to best handle those exposures |
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Risk response |
A written document defining known risk including description, calls, likelihood, cost, and proposed responses that also identifies the current status of each risk. This is also known as business continuity planning |
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Risk response planning |
The process of developing a plantable a risk and to mitigate the effect of those that cannot be avoided |
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Cash to cash cycle time |
An indicator of how efficiently a company manages its assets to improve cash flow |
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Speed management |
Managing the outflow of funds in order to buy goods and services, The time is intended to encompass such processes as outsourcing, procurement, e-procurement, and supply chain management |
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Standard costs |
The target cost of an operation, process, or product, including direct materials, direct labor, and overhead charges |
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Standard costs |
The target cost of an operation, process, or product, including direct materials, direct labor, and overhead charges |
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Standard cost accounting system |
A cost accounting system that uses costs units determine before production for estimating the cost of an order or product |
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Cost of goods |
And accounting classification useful for determining the amount of direct materials, direct labor, allocated overhead associate with the product so during a given period of time |
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Current |
The price currently being paid as opposed to standard costs |
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Current |
The price currently being paid as opposed to standard costs |
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Usage |
Deviation of the actual consumption of materials as compared to the standard |
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Cost |
In cost accounting, the difference between what has been budgeted for an activity and what it actually costs |
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Balance sheet |
A financial statement showing the resources own, the debts owed, the owner share of a company at a given point in time |
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Balance sheet |
A financial statement showing the resources own, the debts owed, the owner share of a company at a given point in time |
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Income |
A financial statement showing the net income for a business over a given period of time |
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Statement of cash flows or funds flow statement |
A financial statement showing the flow of cash and it's timing into and out of an organization or project over a given period of time |
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Accounts Receivable |
The value of goods shipped or services rendered to a customer on which payment has not yet been received and usually includes an allowance for bad debts |
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Accounts Receivable |
The value of goods shipped or services rendered to a customer on which payment has not yet been received and usually includes an allowance for bad debts |
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Accounts payable |
The value of goods and services acquired for which payment has not yet been made |
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Accounts Receivable |
The value of goods shipped or services rendered to a customer on which payment has not yet been received and usually includes an allowance for bad debts |
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Accounts payable |
The value of goods and services acquired for which payment has not yet been made |
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Net working capital |
The current assets of a firm minus its current liabilities |
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Accounts Receivable |
The value of goods shipped or services rendered to a customer on which payment has not yet been received and usually includes an allowance for bad debts |
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Accounts payable |
The value of goods and services acquired for which payment has not yet been made |
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Net working capital |
The current assets of a firm minus its current liabilities |
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Prof |
Money remaining from revenues after deduction of certain expenses |
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Accounts Receivable |
The value of goods shipped or services rendered to a customer on which payment has not yet been received and usually includes an allowance for bad debts |
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Accounts payable |
The value of goods and services acquired for which payment has not yet been made |
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Net working capital |
The current assets of a firm minus its current liabilities |
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Prof |
Money remaining from revenues after deduction of certain expenses |
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Profit |
the difference between sales and cost of goods sold sometimes expressed as a percentage of sales |
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Gross profit margin |
The difference between total revenue and the cost of goods sold |
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Gross profit margin |
The difference between total revenue and the cost of goods sold |
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Net |
Is figured by deducting all expenses, not only the cost of goods sold, from revenues |
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Matching |
Reporting related revenues and expenses together in the period in which they were incurred |
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Cash flow |
The net flow of dollars into or out of the proposed budget or organization |