Supply Chain Final Exam Study Guide

A set of vocabulary flashcards covering key concepts from the supply chain final exam study guide, including production strategies, logistics costs, and inventory management.

Transportation

The largest component of overall logistics costs.

Cost of Lost Sales

The potential revenue or profit lost when inventory is unavailable; it shares a complex trade-off relationship with inventory and transportation costs.

Commodities

Standardized goods or products that are interchangeable and often traded based on price rather than brand differentiation.

Supply Chain

The integrated network of individuals, organizations, resources, activities, and technology involved in moving a product or service from supplier to customer.

Fulfillment Group

The internal department responsible for the process of receiving, packaging, and shipping orders to the customer.

MTS (Make to Stock)

A production strategy where goods are manufactured based on demand forecasts to maintain inventory levels.

ATO (Assemble to Order)

A production strategy where products are assembled from pre-manufactured components only after a customer order is received.

BTO (Build to Order)

A production strategy where the manufacturing process starts only after a confirmed customer order is placed.

ETO (Engineer to Order)

A production strategy where products are designed and manufactured to unique customer specifications after the order is received.

3PL (Third-Party Logistics)

External providers that handle various logistics functions such as transportation, warehousing, and inventory management for a company.

Omni-channel

A multichannel sales approach that provides customers with a seamless shopping experience across online, mobile, and physical store environments.

VMI (Vendor Managed Inventory)

A supply chain strategy where the supplier is responsible for managing and replenishing the buyer's inventory levels.

CPFR

Collaborative Planning, Forecasting, and Replenishment; a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand.

S&OP

Sales and Operations Planning; a process to develop tactical plans that provide management the ability to strategically direct its businesses to achieve competitive advantage.

Reorder Point

The specific level of inventory which triggers an action to replenish that particular stock item.

Push Inventory Management

A system where production and distribution decisions are based on long-term forecasts and goods are sent down the supply chain in anticipation of demand.

Pull Inventory Management

A system where product manufacturing and distribution are triggered by actual customer orders rather than forecasts.

Line Fill Rate

A performance metric calculated as $\frac{\text{Number of order lines filled}}{\text{Total order lines requested}} \times 100$.

RDC

Regional Distribution Center; a warehouse facility used to store and distribute goods within a specific geographic area.

Intermodal Transportation

The use of two or more different modes of transportation (e.g., rail, truck, sea) to move a single shipment from origin to destination.

Scope 1, 2, and 3 Emissions

A framework for greenhouse gas accounting: Scope 1 covers direct emissions; Scope 2 covers indirect emissions from purchased energy; Scope 3 covers all other indirect emissions in the value chain.

EDI (Electronic Data Interchange)

The computer-to-computer exchange of business documents in a standard electronic format.

API (Application Programming Interface)

A set of protocols and tools that allows different software applications to communicate and share data in real-time.