International Business Vocabulary

What does the term "Supply Chain" mean?

• Process of purchasing goods for personal use

• Process of sourcing materials for product manufacturing

• Chain of retail stores

• Direct sales process to the customer

Answer explanation

The term "Supply Chain" refers to the process of sourcing materials for product manufacturing, which involves the entire flow of goods from suppliers to manufacturers, ensuring products are made efficiently.

What is the main goal of "Logistics"?

• To increase transportation costs

• To improve the company's image

• To optimize the distribution and storage of products

• To simplify the purchasing process

Answer explanation

The main goal of logistics is to optimize the distribution and storage of products, ensuring efficient movement and management of goods, which ultimately supports business operations and customer satisfaction.

What is "Just in Time"?

• A method of mass production

• A technique to reduce production time

• A strategy to reduce inventory by delivering items just when they are needed

• A business model for technology companies

Answer explanation

"Just in Time" is a strategy to reduce inventory by delivering items just when they are needed, minimizing waste and storage costs. This approach enhances efficiency in production and supply chain management.

"E-commerce" refers to:

• Electronic commerce through digital platforms

• Commerce between large companies

• Selling products at low cost

• Trade of eco-friendly products

Answer explanation

"E-commerce" specifically refers to electronic commerce conducted through digital platforms, enabling buying and selling over the internet. This distinguishes it from other forms of commerce.

What is the primary role of a "Supplier"?

• To buy goods for resale

• To provide necessary materials or services for production

• To manage the company’s inventory

• To transport products to customers

Answer explanation

The primary role of a "Supplier" is to provide necessary materials or services for production, ensuring that manufacturers have what they need to create their products.

What does "Outsourcing" mean?

• Internal production of goods

• Outsourcing of non-essential activities or services

• Distribution of products abroad

• Retail sales online

Answer explanation

Outsourcing refers to the practice of contracting out non-essential activities or services to external providers, allowing companies to focus on their core functions and reduce costs.

What does the term "Benchmarking" refer to?

• Comparing processes and practices with other organizations to improve

• Creating new products to diversify the offer

• Measuring customer satisfaction

• Reducing costs by buying in bulk

Answer explanation

Benchmarking refers to comparing processes and practices with other organizations to identify areas for improvement. This helps organizations enhance their performance by learning from others.

What does "Lead Time" describe?

• Time needed to place an order

• Time from order placement to final product delivery

• Time for managing internal logistics

• Employee training time

Answer explanation

"Lead Time" refers to the duration from when an order is placed until the final product is delivered. This encompasses all processes involved in fulfilling the order, making "Time from order placement to final product delivery" the correct choice.

What is an "Inventory"?

• List of suppliers

• Record of products and materials available in a company

• Sales plan

• Customer database

Answer explanation

An "Inventory" refers to the record of products and materials available in a company. It helps track stock levels and manage resources effectively, making it the correct choice among the options provided.

The term "Distribution" refers to:

• Product advertising

• Transportation and delivery of products to different sales points

• Revenue generation through sales

• Mass production of goods

Answer explanation

The term "Distribution" specifically refers to the transportation and delivery of products to various sales points, ensuring that products reach consumers effectively.