Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
business logistics
| Term | Definition |
|---|---|
| A group of collaborative companies | Supply Chain is best described as |
| Logistics | is a subset of supply chain |
| economic, market, relevancy values | 3 values of integration |
| Economic value: | High quality at a low price (Economic of Scale) |
| Market value: | Convenient product/service assortment and choice (Economic of Scope) |
| Relevancy value: | Unique product/service bundle |
| computing power and the Internet | Technological advancements in affect the supply chain |
| Information Technology, Integrative management, Responsiveness (Push, Pull strategies, postponements), Globalization | Forces driving supply chain strategies |
| Lowest total process cost | is the focus of integrated management |
| Anticipatory Business Model (Push, build-to-stock) | Based on forecasts or best guesses of demand of products and products are ‘pushed’ to customers |
| Responsive Business Model (Pull, demand-driven model or build-to-order) | Actual customer orders or purchases trigger events in the supply chain : |
| Driven by forecast | The Anticipatory Business Model is best described as |
| Postponement | Manufacturing (or Form) Geographic (or Logistics) |
| Service and cost minimization | Logistical value proposition: |
| Availability, Operational performance, Service reliability | Service benefits are created by logistical performance in these 3 areas |
| Availability | involves having inventory to consistently meet customer material or product requirements |
| Operational performance | deals with the time required to deliver a customer’s order, Key metrics for this area involve delivery speed and consistency |
| Service reliability | involves the quality attributes of logistics – Key to quality is accurate measurement of availability and operational performance over time |
| Cost minimization: | Traditional Cost Logistics Model vs Total Cost Logistics Model |
| (Annual holding cost * Value of shipment ) / 365 | Daily cost of holding product |
| The work of logistics | Order processing, inventory, transportation, warehousing, material handling and packaging, facility network |
| Core customer segmentation: Product profitability: Transportation integration: Time-based performance Competitive performance | 5 Inventory Strategies |
| Core customer segmentation | Some customers are highly profitable or have outstanding growth potential |
| Product profitability: | Less than 20 percent of all products marketed account for more than 80 percent of total profit (Pareto Principle ) |
| Transportation integration | Most transportation rates are based on the volume and shipment size |
| Cost, speed, consistency | Three fundamental factors of transportation performance: |
| Inventory safety stocks are required to protect against service failure | When transportation lacks consistency, |
| Logistical operations: | Inventory and information flow |
| raw materials, work-in-process, Finished products | Managers must be concerned with the movement and storage of inventory in 3 major forms: |
| Planning / coordination information & Operational information needed to complete work | Information flow: Logistical information has two major components |
| Responsiveness, variance reduction, inventory reduction, shipment consolidation, quality, life cycle support | Logistical integration objectives: |
| Visibility, coordination, reduce lead time, inventory. | Benefits of Effective and Efficient Use of Information |
| Office automation system, communication system, transaction processing system, management information system and executive information system, decision support system, enterprise system | Six system types |
| Spreadsheet | example of Office automation system |
| GPS | example of Communication system |
| Point-of-Sale POS | example of Transaction processing |
| Logistics Information system (LIS) | example of MIS & EIS |
| Warehouse Management System(WMS), Transportation Management System(TMS) | example of decision support system |
| Enterprise resource planning (ERP), | example of enterprise system |
| ERP | The backbone of most firm’s logistical information systems~ |
| CRM, Logistics, manufacturing, inventory deployment, purchasing | Enterprise five operations system components |
| logistics manager requesting information | A logistics information system begins with |
| Online Retailing | Similarities: Logistics functions and activities Difference : order sizes, packaging, transportation methods and companies, return rates |
| Transactional, Compliance, Management information, Price | E-procurement 4 benefits |
| enhanced transactional efficiency | Transactional benefits: |
| Compliance benefits: | Focus on the saving that come from adherence to established procurement policies |
| Management information benefits: | encompass those that result from management information, customer satisfaction, and supplier satisfaction levels after implementation of e-procurement |
| Price benefits: | those that are given as a result of adopting e-procurement |
| Four economic utilities, 3 discrepancies, Four generic supply chain service outputs | Customer-focused marketing: |
| Form, Possession, Time, Place | Four economic utilities: |
| Space, Time, quantity and assortment | 3 discrepancies: |
| Spatial convenience, lot size, waiting time, product variety and assortment | Four generic supply chain service outputs: |
| availability, operational performance, service reliability | Basic elements of customer service |
| At right amount, product, time, place, condition, price, information | 7R |
| Fill rate, stockout frequency, Orders shipped complete | Availability (3): |
| Speed, consistency, Flexibility, malfunction recovery | Operational performance (4): |
| involves a combination of logistics attributes beyond simply availability and operational performance | Service reliability: |
| zero defect | Perfect order: |
| Customer expectations (10), a model of customer satisfaction (6gaps) | Customer satisfaction |
| Reliability, responsiveness, access, communication, credibility, security, courtesy, competency, tangibles, knowing the customers | Customer expectations (10): |
| Knowledge, standards, performance, communications, perception, satisfaction/quality | Six gaps: |
| Achieving customer success, value-added service | Customer success: |
| unique or specific activities that firms can jointly develop to enhance their efficiency, effectiveness and relevancy | Value-added services refer to |
| higher logistics cost | greater spatial convenience results in |
| focused on today transaction, short term view | Procurement concept, purchasing |
| building relationships with suppliers and downstream customers | Procurement: focus on |
| Continuous supply, minimize inventory investment, quality improvement, supplier development, access technology and innovation, lowest total cost of ownership | Procurement objectives |
| 2 types of discount: Quantity, Cash | Lowest total cost of ownership: |
| Insourcing vs. outsourcing, alternative procurement strategies, procurement strategy portfolio | Procurement strategy: |
| 1) User buy 2) Volume consolidation (supply base reduction) 3) Supplier operational integration 4) Value management | Four alternative procurement strategies |
| has potential benefits for suppliers as well as for buyers. | Supply base reduction (volume consolidation) |
| Just-in-time(JIT) | Seeks to minimize inventory by reducing (or eliminating) safety stockwhile having the required amount of materials arrive at the production location at the exact time they are needed |
| evaluate decision | final step in the supplier selection and evaluation process |
| Collaborating planning, requirements planning, resource management | Forecasting requirements |
| wrong | Forecasts are always |
| groups or families of items and shorter time periods | Forecasts are more accurate for |
| error estimate | Every forecast should include an |
| calculated demand | Forecasts are no substitute for |
| Base demand, seasonal, trend, cyclic, promotion, irregular | Forecasting components: |
| (BD*S*T*C*P)+irregular Base demand*Seasonal*trend*Cyclic*Promotion | The forecasting model: |
| Three integrated process: administration, technique, support system | Forecasting Process: |
| Relies on expert opinion and special | Qualitative |
| Time series, Causal | Quantitative |
| do not always result in less forecast error than qualitative techniques | quantitative techniques |
| finished good inventory | In MTS ( Made to Stock) customer orders are satisfied from |
| individual customers and generally have long lead times | Engineer to order products are designed for |
| Performance: Reliability: Durability: Conformance: Features, Aesthetics: Servicability:Perceived quality | The 8 dimensions of product quality |
| Brand power, volume, variety, constraints, lead time | Manufacturing perspective: |
| Volume: | economic of scale |
| Variety: | economic of scope |
| Constraints: | Capacity, equipment, setup/changeover |
| Manufacturing strategy: | Basic manufacturing processes, matching manufacturing strategy to market requirements, alternative manufacturing strategies, total cost of manufacturing |
| Job shop:,Batch Process, Line flow, Continuous process: | Four basic manufacturing processes |
| Job shop: | Flexibility: Very high, customization: Very high, volume: Very low |
| Batch Process: | F: High, C: High volume: Low |
| Line flow: | typical example: automobile manufacturer, limited, V: High |
| Continuous process: | Flexibility: very low, customization: very low, volume: Very high, typical example: petroleum products |
| Engineer-to-order(ETO), Make-to-order (MTO), Assemble-to-order (ATO) or Build-to-stock(BTO), Make-to-stock(MTS) or Make-to-Plan(MTP): | Four main manufacturing strategies |
| Engineer-to-order(ETO): | used when products are unique and extensively customized for the specific needs of individual customers Design – Purchase – Manufacture – Assemble- Ship (the longest lead time)** |
| Make-to-order (MTO): | Small quantities(have lower inventory and warehouse costs), but more complexity, usually shipped direct to customer Inventory –manufacture-assemble-ship Subway case |
| Assemble-to-order (ATO) or Build-to-stock(BTO): | when base components are made, stocked to forecast, but products are not assembled until customer order is received Manufacture-inventory-assemble-ship Dell example |
| Make-to-stock(MTS) or Make-to-Plan(MTP): | Economic of scale, large volume, long production runs, low variety, **Produce finished goods, customers buys from inventory!! Manufacture-assemble-inventory-ship McDonald’s case |
| Contemporary manufacturing developments: | Mass customization, lean systems, six sigma, logistical interfaces |
| Lean system : | the minimize the amount of all resources, elimination of “waste”. Four principles: |
Created by:
normh80
Popular Business sets