Term
The effect of repositioning safety stock in the supply chain from the manufacturer to the supplier |
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Definition
can reduce overall supply chain safety stock levels. |
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Term
According to classroom discussions, the largest economically justifiable price is: |
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Definition
determined by competitive forces (“what the market will bear”). |
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Term
Order processing refers to __________________________________. |
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Definition
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the time from when the customer places an order until the seller receives the order |
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Term
Multiple sourcing proponents argue that |
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Definition
- by having more than one supplier, increased amounts of competition can arise
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by having more than one supplier, greater supply risk mitigation can arise
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by having more than one supplier, improved market intelligence can arise
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this approach will provide the company with the best value of a supplied part
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Term
As discussed in class, when transportation costs were included in EOQ calculations ______________. |
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Definition
the adapted equation was influenced significantly by whether the freight was shipped LTL or TL. |
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Term
As discussed in class, if transportation costs are paid for by the supplier and then passed onto the purchasing company as a hidden component of the per unit price, then ______________. |
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Definition
transportation costs remain relevant in order quantity decisions. |
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Term
As discussed in class, the traditional (or original) EOQ equation ______________. |
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Definition
can be adapted in certain restricted situations to include transportation costs. |
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Term
According to classroom discussions, managing warehouses in a rural midwestern area of the U.S. _____________________. |
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Definition
might focus on minimizing labor foot paths. |
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Term
According to classroom discussions, ABC analysis _____________________. |
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Definition
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places greatest resources on the management of A items.
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places moderate resources on the management of B items
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places very little resources on the management of C items
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applies Pareto’s 80/20 rule.
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Term
The most common TL container size in the U.S. is ______________________. |
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Definition
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Term
According to classroom discussions, consolidating safety stock ___________________________. |
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Definition
| should decrease safety stock levels. The new safety stock levels can be quantified with the aid of the square root rule. |
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Term
| As discussed in class, the traditional (or original) EOQ equation optimally balances transportation costs and other logistics related costs so that overall logistics costs are minimized. |
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Definition
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Term
As discussed in class, EOQ calculations can be adapted to consider volume discounts. Near optimal solutions _____________________________________ . |
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Definition
can be found by comparing total annual costs for all appropriate order quantities which includes minimal volume discount quantities. |
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Term
According to classroom discussions, in the U.S., individual interstate motor carrier shipments ______________________. |
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Definition
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with a single container are restricted to 53 foot containers.
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with a single container are restricted to 80,000 pounds (including tractor, trailer and shipment).
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have limitations on how much time a single driver can operate a truck carrying the shipment before taking a documented rest.
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require much less capacity than the capacity found on a train or a container ship
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Term
| According to classroom discussions, the interstate TL industry _______________________. |
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Definition
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Term
Use the rule of thumb discussed in class to approximate how much it will cost a company to carry an average safety stock level of $1 million and an average rotating stock level of $15 million. |
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Definition
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Term
| As discussed in class, when transportation costs are added to EOQ calculations ______________. |
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Definition
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supply chain systems can be better evaluated for optimal cost efficiencies.
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supply chain systems can be better evaluated for optimal warehouse locations.
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supply chain systems can be better evaluated for the optimal number of warehouses.
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supply chain systems can be better evaluated by considering the balance of certain costs. For example, when considering TL transportation movements, annual inventory carrying costs should equal the sum of annual ordering costs plus annual transportation costs.
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Term
According to classroom discussions, Steven Covey introduced a 2x2 matrix that DOESNT______________. |
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Definition
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differentiates between continuous process improvement and quantum disruptive changes.
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harmonizes global supply chain efforts with information technology management.
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contrasts total supply chain costs for global versus domestic environments.
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approximates in-transit inventory carrying costs for global shipments.
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Term
According to classroom discussions, managing warehouses in a large metropolitan area such as New York City _____________________. |
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Definition
focuses on maximizing space utilization. |
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Term
| Single sourcing ISN'T_______________________________. |
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Definition
indicates that a company is a supplier and only sells to one company.
indicates that a company only uses one raw material in its product(s).
is a technique used by transportation companies as they focus sales efforts.
was popularized in the 1950s but has been shown to be less useful in today’s global economy. |
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Term
International Logistics refers to _________________________.
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Definition
logistics activities associated with goods that are sold across national boundaries |
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Term
As discussed in class, common SCM tradeoffs include ________________________ |
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Definition
inventory carrying costs versus transportation costs |
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Term
| when looking at a human driven process, the overall reliability of the process _______. |
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Definition
is unlikely to be acceptable if more than 14 steps exist in the process |
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Term
| if transportation costs are paid for by the purchasing company, then ______________. |
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Definition
transportation costs are easier to consider since they are known |
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Term
| ABC analysis might __________________________________ |
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Definition
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focus on the total item value (individual item value times quantity) of individual SKUs
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focus on the value of individual SKUs
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focus on the total accumulated value passing through the warehouse annually of individual SKUs
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focus on the turnover rate of individual SKUs
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Term
| the LTL industry ISN'T _______________________ |
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Definition
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accounts for almost 80% of all transportation costs in the U.S
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has low barriers to entry
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provides 3rd party global information exchanges
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provides EOQ analyses to high tech industries
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Term
| JIT ___________________________. |
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Definition
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can increase overall inventory levels in certain circumstances
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easier to implement when distances are small for several reasons including reduced transportation costs
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an acronym that stands for just-in-time
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can reduce overall inventory levels in certain circumstances
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Term
| when looking at a product with multiple components, the overall reliability of the product is _______ |
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Definition
the product of the reliabilities of the individual components |
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Term
| breakeven quantities for LTL and TL shipments AREN'T _______________________. |
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Definition
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are between 35 – 45 percent of the capacity of a 53 foot container
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can be calculated using the EOQ equation
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occur when forecasting variability is high
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can be calculated using breakeven analysis
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Term
| a quick upper bound of the overall reliability of a process ______________________. |
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Definition
- the minimum reliability value for the individual steps in the process.
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applies thoughts found in the phrase “a chain is no stronger than its the weakest link.”
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allows managers to quickly and easily identify processes that most need improvement
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not necessarily the best upper bound of the process
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Term
| when transportation costs are added to EOQ calculations ______________. |
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Definition
-
supply chain systems can be better evaluated for optimal cost efficiencies
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supply chain systems can be better evaluated for optimal warehouse locations
-
supply chain systems can be better evaluated for the optimal number of warehouses
-
supply chain systems can be better evaluated by considering the balance of certain costs. For example, when considering TL transportation movements, annual inventory carrying costs should equal the sum of annual ordering costs plus annual transportation costs
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Term
| managing warehouses in a rural midwestern area of the U.S. _____________________. |
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Definition
might focus on minimizing labor foot paths |
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Term
| consolidating rotating stock ___________________________. |
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Definition
should make no difference in rotating stock levels. |
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Term
| results of a process be CANNOT be improved by _____________________________. |
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Definition
improving employee training
improving employee motivation
threatening employees
implementing corporate goals
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Term
| if transportation costs are paid for by the supplier and then passed onto the purchasing company as a hidden component of the per unit price, then ______________. |
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Definition
transportation costs remain relevant in order quantity decisions |
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Term
| Steven Covey introduced a 2x2 matrix that DIDNT _________________. |
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Definition
differentiates between continuous process improvement and quantum disruptive changes
harmonizes global supply chain efforts with information technology management.
contrasts total supply chain costs for global versus domestic environments
approximates in-transit inventory carrying costs for global shipments
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