Supply Chain Management Key Terms and Concepts

What is the definition of 'Order Winner'?

• Must-haves (baseline requirements)

• Optional features (nice to have)

• Features that are not required

• Irrelevant characteristics

What is the definition of 'Order Qualifier'?

• Differentiators (what secures the sale)

• Basic criteria that permit the firm's products to be considered for purchase

• The process of fulfilling customer orders

• A measure of product quality

What is the definition of 'Supply Chain'?

• Entire network of organizations, people, activities, information, and resources involved in moving product/service from raw materials to the final customer.

• A process of only manufacturing goods within a single factory.

• A system for tracking employee attendance in a company.

• A method for advertising products to potential customers.

What does 'Logistics' focus on?

• Detailed planning and execution of moving and storing goods (Transportation, warehousing, inventory management, order fulfillment).

• Designing marketing campaigns for products and services.

• Developing new product prototypes and conducting research.

• Managing employee payroll and benefits.

What is Supply Chain Mapping?

• Process of visually documenting/analyzing all organizations, activities, and flows of materials, info, and finances.

• A method for forecasting future sales based on historical data.

• A technique for reducing production costs by outsourcing.

• A process of hiring new employees for logistics operations.

Which of the following is NOT a tier of suppliers?

• A) Companies that supply directly to firm

• B) Companies that supply to tier 1

• C) Companies that supply to tier 2

• D) Companies that supply to tier 3 (not mentioned in the text)

What is a strategic trade-off in supply chain management?

• Choice companies must make between competing priorities (cost, speed).

• A method to eliminate all risks in the supply chain.

• A process of automating every supply chain activity.

• A way to avoid making any decisions in supply chain operations.

What does 'Demand' refer to in supply chain management?

• Customers' desire/willingness to purchase product/service at given time/price.

• The amount of inventory stored in a warehouse.

• The process of transporting goods from supplier to retailer.

• The cost incurred in manufacturing a product.

What is Demand Planning?

• Process of forecasting/managing customers demand to ensure products are available.

• A method for reducing product prices in the market.

• A strategy for increasing employee satisfaction.

• A process for designing new product packaging.

What are demand fluctuations caused by?

• Seasonality, trends/fashion, economic conditions, price changes/promotions, unexpected events.

• Only government regulations and taxes.

• The color of the product packaging.

• The number of employees in a company.