MKT 3010 Chapter 17

push-pull

Supply chain strategy: the company wants to use a hybrid strategy, the company forecasts and prepares inventory but waits to finalize the product until after receiving the order

warehousing

The part of the logistics process that includes storage, movement, and production of materials and finished goods is known as _____________

help a company establish the right channel partners to meet its objectives

The primary goal of an effective supply chain strategy is to _______________

prior years' sales, consumer confidence ratings, growth projections, industry trade shows, marketplace sales trends

To make inventory decisions about what and how much to stock, companies gather sales data from what sources?

push, pull, push-pull

What are the 3 supply chain strategies?

it allows firms to respond quickly to changing market conditions, it is ideal for product customization, it typically reduces inventory carrying costs

What are the advantages of a pull strategy?

it usually enables firms to achieve economies of scale, it typically reduces the costs associated with manufacturing, transportation, and the like

What are the advantages of a push strategy?

it allows flexibility in manufacturing, it usually enables firms to achieve economies of scale

What are the advantages of a push-pull strategy?

businesses can reduce costs and make better use of resources, companies are better able to predict and stay on top of demand, firms are better able to overcome obstacles of time and distance

What are the benefits of supply chain integration?

inventory levels, operating expenses, customer service, transportation costs

What are the factors a company should take into consideration when designing a distribution center?

communication effectiveness and timeliness

What are the qualitative service elements that a firm should monitor after choosing its supply chain partners?

increased ability to respond to market changes, reduced costs, better use of resources, improved customer service

What are the typical benefits of integrated supply chains?

the good is not made until a customer order is received, the company's marketing strategy requires agility and product customization

What are traits of a pull supply chain strategy?

the firm waits for a customer to order the product through the marketing channel, the company's marketing strategy includes objectives related to cost competitiveness and customer service

What are traits of a push supply chain strategy?

the company wants to use a hybrid strategy, the company forecasts and prepares inventory but waits to finalize the product until after receiving the order

What are traits of a push-pull supply chain strategy?

inventories

What aspect of the logistics process involves goods used to meet supply and demand?

materials management

What aspect of the logistics process involves inbound movement and storage of materials prior to the manufacturing process?

transportation

What aspect of the logistics process involves the movement of goods to help firms build a supply and compete globally?

purchasing

What aspect of the logistics process involves the procurement of materials, parts, and services?

warehousing

What aspect of the logistics process involves the storage of both materials and finished goods?

a customer may be prepared to wait or place a back order, they may order the same item from a competitor, they may decide to stop doing business with the firm

What can occur as a result of a stockout?

ship goods to customers

What do distribution centers do?

the management of the physical flow of materials, parts, and products within a supply chain

What is logistics?

goods used to meet supply and demand

What is the inventories aspect of the logistics process?

inbound movement and storage of materials prior to the manufacturing process

What is the materials management aspect of the logistics process?

by creating feedback mechanisms throughout the supply chain

What is the primary way marketers use data to optimize supply chain functionality?

the procurement of materials, parts, and services

What is the purchasing aspect of the logistics process?

it lets companies reach markets around the world, good transportation management makes value that is important for keeping customers happy, it greatly influences the entire supply chain

What is the role of transportation in the logistics process?

good transportation management creates value

What is the role of transportation management in logistics?

the movement of goods to help firms build a supply and compete globally

What is the transportation aspect of the logistics process?

the storage of both materials and finished goods

What is the warehousing aspect of the logistics process?

they are specialized buildings designed to store and send finished goods to customers, they are essential to the order fulfillment process as they speed delivery of goods and minimize costs, it is owned by a company that's engaged in gathering and selling products to end customers

What is true about distribution centers?

firms can evaluate a potential supply chain partner's overall performance, they can analyze data to determine a potential partner's delivery, quality, and service record, firms are able to analyze all the costs related to elements within a supply chain

What is true about firms using data to learn about potential supply chain partners?

a marketing channel serves as a supply chain go-between, each marketing channel serves a specific purpose in the supply chain

What is true about marketing channels?

a distributor buys large quantities of goods from a producer and warehouses them and resells them, distributors usually only sell products for a single manufacturer or for non-competing companies

What is true about the functions of distributors?

firms use data to identify the costs and benefits associated with each choice of supply chain partners

What is true regarding using data to manage costs in the supply chain?

capacity and accessibility

When choosing transportation modes, companies must consider _______________________

transportation

Which aspect of logistics allows companies to market goods to greater distances, helping build global supply chains and compete in new markets?

sell to other businesses

Wholesalers are similar to grocery stores, except wholesalers ______________

products may become outdated if they are warehoused for extended periods, carrying excessive inventory is expensive

Why is ending up with excess inventory, a disadvantage of the push strategy, a liability for firms?

accessibility

how easy it is for a transportation mode to get the freight from one loading dock to another

request for proposal

Firms often choose their initial partners through a(n) _________________

downstream, final customer; upstream, customer to the manufacturer

In a supply chain, information, finances, and products flow ______________ toward the _____________, or _____________ from the _______________

can be carried by different types of vehicles

Intermodal transportation involves putting products in a container that _________________

multiple modes of transportation

Intermodal transportation is transportation of freight in a container using _____________

moving goods, services, and information from their point of origin to the final customer

Logistics is the process of ___________________

supply chain intermediaries

Marketing channels are considered _______________

approximately half

Materials that are purchased for manufacturing typically account _____________of the product costs

3 or more companies

One characteristic of a supply chain is the involvement of ______________

cannot transport physical goods

One disadvantage of the digital transportation method is that it _____________

lower profitability and higher prices

Over time, costs within the supply chain can increase, which can result in ________________

product design and time to market, involving appropriate suppliers early in the product design process

Purchasing can help improve ______________ for new products by _____________________

capacity

the ability of a transportation mode to handle the required volume

a supply chain

A set of 3 or more companies linked by one or more of the upstream and downstream flows from source to consumer is referred to as _______________

has insufficient inventory to fill an order

A stockout occurs when a firm _____________

outward focus on the activities and performance of other companies, inward focus on one's own company

A supply chain orientation emphasizes a(n) ____________________ rather than a(n) ___________________

transportation mode

Accessibility, speed, capacity, cost, service, and international capabilities are all considerations for choosing a(n) ___________________

downstream flow

As a product moves along a(n) ______________, value is added to that product

noncompeting products, partners with only one company

Because a distributor only buys _______________, it typically ______________

push-pull strategy, flexibility

By using a ______________, companies can achieve economies of scale in purchasing while ___________________

cost data, input components, storage facilities, and distribution channels

Choice of supply chain partners is in part based on _______________ related to the elements within the supply chain, including the _________________________

changes in production costs and in logistics costs

Costs in the supply chain can increase as a result of _______________

pull strategy

Customer orders drive manufacturing and distribution operations in a(n) ______________

a retailer buys goods in relatively small quantities and then resells them to end users

Describe a retailer

it requires a production facility that can change quickly to produce different products

A major disadvantage of a pull strategy is that ___________________

wholesaler, retailers, consumers

A ___________ acts as a "middleman", buying goods in bulk and reselling them to ____________, which in turn sell to ________________

retailer

A company that purchases and resells products to consumers for their personal or family use is a(n) _______________

coordination and information sharing

A firm requires a high level of ______________ to manage its supply chain functionality

wholesaler

A firm that buys large quantities of goods from various producers or vendors, warehouses them, and resells them to retailers or others businesses is a(n) ________________

a wholesaler, distributors

A firm that purchases goods in bulk from various producers, warehouses them, and then resells them to retailers and other businesses is referred to as _______________. Closely related are ____________ which typically only purchase noncompeting products and often work with only one producer

to identify costs and benefits with each choice of supply chain partner, to manage supply chain costs, to manage supply chain functionality, to coordinate high levels of information sharing

How do firms rely on data to help inform their supply chain and channel management strategies?

by forecasting future demand using past sales and consumer confidence ratings

How do marketers use data to inform inventory decisions?

by controlling stages along the supply chain moving from production to end customer, by having goods and services available when required along the supply chain through better inventory and transportation management

How do supply chains add value?

less operating expenses, higher transportation costs from production sites to distribution centers

If a company has fewer facilities in a distribution network, it will incur _______________. More distribution centers can lead to _________________________

product allocation function

In a distribution center, available goods are picked to fill customer orders under the __________________

pull

Supply chain strategy with the traits: the good is not made until a customer order is received, the company's marketing strategy requires agility and product customization

any savings in purchase costs can add significantly to a company's profits

Since materials purchased for manufacturing typically account for approximately half of the product costs, this means that __________________

management philosophy, adopt an outward focus on the activities and performance of other firms

Supply chain orientation is a type of _____________ that requires marketers to ___________________

push

Supply chain strategy with the traits: the firm waits for a customer to order the product through the marketing channel, the company's marketing strategy includes objectives related to cost competitiveness and customer service