ch 17 u4 book notes int business

Global Production

The distribution of production activities across various countries to minimize costs and adapt to local conditions.

Production Location Strategy

The decision-making process to determine the optimal location for production based on factors like costs, risks, and logistical efficiency.

Redundancy in Supply Chains

The practice of spreading production and supply chains across multiple countries to mitigate risks associated with concentrating resources in one location.

Outsourcing

The practice of delegating production activities to independent vendors rather than conducting them in-house.

Foreign Production Role

The long-term strategic function of international production sites, including decisions about maintaining or abandoning sites based on changing costs.

Cost Considerations

Factors involved in determining production location, including factor costs, tariff barriers, and political risks.

Flexibility in Manufacturing

The ability to adapt production processes quickly to meet changing market demands or customer preferences.

Value-to-Weight Ratio

A measure used in logistics to determine the impact of transportation costs based on a product's value relative to its weight.

Total Cost Focus

An approach in supply chain management that prioritizes the overall costs to serve customers rather than minimizing costs at individual production stages.

Six Sigma

A quality improvement methodology aimed at reducing defects and enhancing productivity in production processes.

ISO 9000

A set of international standards for quality management and assurance that organizations must adhere to for market access, particularly in the EU.

JIT Inventory System

A strategy aimed at reducing inventory costs by receiving goods only as they are needed in the production process.

Flexible Manufacturing Technology

Innovative production methods that allow for the efficient production of varied products through the use of advanced machinery and processes.

Make-or-Buy Decision

The strategic choice between producing an item internally or purchasing it from external suppliers.

Lead Factory

A production facility that is innovative and sets benchmarks for production processes across a multinational corporation.

Outpost Factory

A production location that serves as an intelligence-gathering unit, often situated near competitors or critical suppliers.

Supplier Relationship Management

The strategic approach to managing a company's interactions with the vendors that supply the goods and services it uses.

Blockchain Technology

A digital ledger system that enhances supply chain transparency and coordination by allowing partners to share and agree on key information securely.

Vendor Management Inventory (VMI)

A supply chain management practice where the supplier is responsible for maintaining the inventory levels of their products at the buyer's location.

Transportation Costs

The expenses associated with moving goods from one location to another, which can vary based on distance, mode, and load characteristics.

Reverse Logistics

The process of managing the return of goods from customers back to suppliers to recapture value or dispose of them effectively.

Global Distribution Center (DC)

A facility that stores products and facilitates their customization and distribution to global markets.

Economies of Scale

The cost advantages companies experience when production becomes efficient, as the scale of output increases.

Minimum Efficient Scale

The lowest level of production a company can achieve while still minimizing long-run average costs.

Local Responsiveness

The ability of a company to tailor its products and operations to meet local market demands.

Country-Specific Factors

The economic, political, cultural, and cost-related variables that influence a firm's decision on where to produce.

Operational Integration

The collaborative process where different functions of a supply chain work together to enhance efficiency and effectiveness.

Quality Assurance

The continuous evaluation and maintenance of quality standards within a production process.

Information Technology Role

The use of IT systems to manage and coordinate supply chain activities effectively, improving visibility and efficiency.

Supply Chain Coordination

The synchronized effort of all participants in a supply chain to ensure smooth operations and meet customer demands.

Supplier Selection Criteria

The benchmarks and standards used to choose suppliers based on their reliability, cost, quality, and capabilities.

Inventory Management

The process of overseeing and controlling the ordering, storage, and use of a company's inventory.

Customer-centric Supply Chain

A supply chain approach that focuses on the needs and preferences of customers to enhance satisfaction.

Operational Objectives

Goals targeted within a supply chain to improve efficiency, such as reducing variance, inventory, and enhancing responsiveness.

Global Sourcing Strategy

The approach a company uses to source materials and components from global markets to advantage cost and quality.

Quality Control Standards

The specific criteria a production process must meet to ensure the final product's quality is consistently high.

Trade Barriers

Government-imposed restrictions on the international exchange of goods that impact production and supply chain decisions.

Ecosystems of Supply Chain Partners

A network of interconnected businesses that collaborate to optimize supply chain operations.

Value Creation Activities

Operations within a company—such as production, marketing, logistics, and R&D—that enhance the company's value proposition.

Manufacturing Technology Trends

Current advancements in technology that influence production methods and efficiencies in manufacturing.

Supply Chain Efficiencies

Gains made in reducing costs and enhancing service levels within a supply chain through better coordination and resource utilization.

Consumer Preferences Dynamics

The changing tastes and demands of customers that affect production and supply chain strategies.

Economies of Scope

Cost advantages that companies achieve by producing a variety of products rather than specializing in one product.

Host-Government Demands

Local regulations and expectations that firms must meet when operating in foreign markets.