SCM Final Test

Safety Stock

Vocab: A quantity of stock planned to be in inventory to protect against fluctuations in demand or supply. Over planning supply vs. demand can be used to create safety stock.

TED Talk

Vocab: A video or presentation created/spoke to bring light to an idea or topic.

Inbound Transportation

Vocab: Brings supplies or materials into a business. Transportation/movement of goods throughout the supply chain

Bottleneck

Vocab: Point of congestion in a production system (like an assembly line).

Workflow Analysis

Vocab: Process of breaking down the performance workflow and examine them for possible improvements.

Reshoring

Vocab: The practice of moving a business or part of a business based in a different country back to its home country.

Order Picking

Vocab: The process of collecting items from a warehouse to complete customer orders.

Globalization

Vocab: The process that businesses use to start operating on an international scale. It is the movement of people, labor, and technology across international borders

Confidentiality

Vocab: The state of keeping or being kept secret

Transportation Mode

Vocab: The way a product gets to one place to another

True

True/False: Companies should complete a risk assessment and create a risk mitigation plan to reduce the probability and impact of potential product shortages.

True

True/False: Cross-training workers is a typical capacity management technique for times when demand exceeds capacity.

True

True/False: Ethical sourcing policies should include such things as reporting of supplier compliance to stakeholders and detailing ethical sourcing expectations to suppliers.

Boycott

Vocab: A nonviolent, voluntary act when you withdraw from commercial (using or buying products) and social interactions as a punishment or protest.

Reneging

Vocab: Abandon the idea.

Environmental Damage

Vocab: When the environment (air, water, soil, animals) are being harmed, depleted, or deteriorated. Can be caused by overpopulation, pollution, deforestation, or burning fossil fuels.

Pandemic

Vocab: An outbreak of a disease prevalent over the whole country and world.

Stock

Vocab: The supply of finished goods available to sell to the end customer

Waiting Time

Vocab: The time is takes between getting the necessary items and when the product is actually made.

Service Time

Vocab: Time taken by the system to process service requests.

Time Bucket

Vocab: Unit of time or time period used in MRP (days, weeks, months).

True

True/False: A Master Production Schedule is a medium-range plan

True

True/False: A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier.

True

True/False: In most services, customers are either directly or indirectly involved in the production of the service itself.

False

True/False: Master Production Schedule is the name of the engineering document that shows all component parts and materials which make up the final product

False

True/False: Product shortages increase customer satisfaction.

False

True/False: Sourcing Sustainability is described as the ability to meet the current needs of the supply chain without costing the company any additional time or money.

Disruption

Vocab: A break or interruption in the ordinary course or continuation of some activity or process. The action of completely changing the the traditional way an industry or market operations by using new methods or technology.

Service Level Agreement

Vocab: A documented agreement between a service provider and a customer that identifies both the services required and the expected level of service.

Workflow Map

Vocab: A graphic overview of a business process. The visual representation of the actions, decisions, or tasks performed to achieve a certain result.

Warehouse

Vocab: A large building where raw materials and/or manufactured goods may be stored before their export or distribution for sale.

Aggregate Production Planning

Vocab: A long-range plan that is used to determine the timing and quantity of total future production for a family of products.

Carbon Footprint

Vocab: A measure of carbon emissions from a person, organization, building, or operation.

Failure Point

Vocab: A part of a system that, if it fails, will stop the entire system from working. A potential risk posed by a flaw in the design, implementation, or configuration of a system in which one fault or malfunction causes an entire system to stop operating.

Time Fence

Vocab: A policy or guideline established to note where various restrictions or changes in operating procedures take place. For example, changes to the Master Production Schedule can be accomplished easily beyond the cumulative lead-me, while changes inside the cumulative lead me become increasingly more difficult to a point where changes should be resisted.

Corporate Social Responsibility

Vocab: A self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Supplier Code of Conduct

Vocab: A set of rules outlining the social norms and responsibilities of, or proper practices for, an individual, party, or organization. Created to ensure that a company's suppliers enforce safe working conditions, that their workers are treated with respect and dignity, and that their manufacturing processes are environmentally responsible.

Shortage

Vocab: A state or situation in which something needed cannot be obtained in sufficient amounts. A condition in which there is not enough of something. A deficiency in quantity.

Multi-Sourced

Vocab: A strategy where a business buys all its supplies of a particular type of materials or parts from more than one company.

Single-Sourced

Vocab: A strategy where a business buys all its supplies of a particular type of materials, parts, etc..from one company.

Queuing System

Vocab: A structure where things arrive (anything, including people), they join a line, wait for a service. After being served, they exit.

Utilitarianism

Vocab: An act that creates the greatest good for the greatest number of people. The theory of having happiness and getting rid of harm/unhappiness. It aims to better the society

Projected Available Balance

Vocab: An inventory balance projected into the future. It is the running sum of on-hand inventory minus requirements plus schedules receipts and planned orders

Sustainability

Vocab: Avoidance of the depletion of natural resources in order to maintain an ecological balance. Meeting the needs of the present without compromising the ability of future generations to meet their needs.

Explicit Services

Vocab: Benefits readily observable by the senses. The essential or fundamental features. Examples are quality of meal, attitude of the waiter, and on-time departure.

Customer Interaction

Vocab: Communication between a business and a customer.

Outbound Transportation

Vocab: Deals with moving goods/products out to customers. Shipping out finished products to customers from warehouses/distribution centers. Consists of order fulfillment process including picking, packing, shipping, and delivery of the package

Bill-of-Resources

Vocab: Describes a list of resources that are needed to make a product. It is used in capacity planning to prioritize certain things.

Service Blueprint

Vocab: Diagram that visualizes the relationships between different service components.

Finished Good

Vocab: Goods that are completed by using the manufacturing process, but have not been sold to customers yet.

Queue Management

Vocab: Helps monitor real-time performance and offer reports for strategic management purposes. Process of improving the business by managing customer's waiting experiences

Human Trafficking

Vocab: Involves force or fraud to obtain individuals for forced labor. These traffickers force or deceive their victims to come with them

Exclusivity

Vocab: Legal contract between 2 parties that restrict one party.

Forecast

Vocab: Looks at data about your suppliers - whether they provide completed products or parts that are assembled further down the supply chain - and uses it to project how much product they will have available and when.

Franchising

Vocab: Method of distributing products or services involving a franchiser (they establish the brand reputation and market it).

Conflict Minerals

Vocab: Natural resources extracted in a conflict zone and sold to perpetuate the fighting.

Bribery

Vocab: Offering and/or receiving a bribe (money) to lean someone towards a point.

Third Party Logistics

Vocab: Offers outsourced logistics services that encompass anything that involves management of 1 or more parts of procurement and fulfillment activities.

Implicit Services

Vocab: Physiological benefits or extrinsic features where the consumer only senses vaguely.

Outsourcing

Vocab: Purchasing an item or service externally, which had been produced using a company's own internal resources previously. Concept of buying an item from an external source of supply regardless of whether the item had been produced using a company's own internal resources previously. Operational transfer of one or more business processes from an origin company to an external provider who then becomes accountable for the outcome of the agreed task.

Human Rights

Vocab: Rights inherent to all human beings, regardless of race, sex, nationality, ethnicity, language, religion, or any other status.

Forced Labor

Vocab: Situations in which persons are coerced to work by violence or intimidation, or by more subtle means such as accumulated debt, retention of identity papers or threats of denunciation to immigration authorities.

Considerations

Vocab: Something bargained for and received by a promisor from a promisee. The exchange of 2 or more things of value in a legally binding contract.

Facilitating Goods

Vocab: Tangible elements that are used or consumed by the customer or the service provider along with the service provided.

Mitigation

Vocab: The act of reducing how harmful, unpleasant, or destructive something is. The process or result of making something less severe, dangerous, painful, harsh, or damaging.

Cross-training

Vocab: The action or practice of training or being trained in more than one role or skill. To train a worker to be proficient at different, usually related, skills, tasks, and jobs.

Master Production Schedule (MPS)

Vocab: The anticipated build schedule for those items assigned to the master scheduler. A set of planning numbers that drives material requirements planning. It represents what the company plans to produce expressed in specific configurations, quantities, and dates.

Capacity

Vocab: The capability of a system to perform its expected function. The capability of a worker, machine, work center, plant, or organization to produce output per me period.

Workflow

Vocab: The definition, execution, and automation of business processes where tasks, information, or documents are passed from one participant to another for action, according to a set of procedural rules.

Social Impact

Vocab: The effect an organization's actions have on the well-being of the community. The effect of an activity on the social fabric of the community and well-being of the individuals and families.

Environmental Impact

Vocab: The effect of human and natural activities that have an impact on the environment. Some examples are overpopulation, pollution, deforestation, or burning fossil fuels

Parties Involved

Vocab: The entities involved in supply chain. They include producers, vendors, warehouses, transportation companies, distribution centers, and retailers.

Transportation

Vocab: The function of planning, scheduling, and controlling activities related to mode, vendor, and movement of inventories into and out of an organization.

Order Fulfillment

Vocab: The method by which a company processes a sales order to the customer's specifications that understates its importance.

Nearshoring

Vocab: The practice of a company getting its production/operations work completed in another country geographically closer to the country where the company is located.

Pollution

Vocab: The presence in or introduction into the environment of a substance or thing that has harmful or poisonous effects.

Demand Planning

Vocab: The process of combining statistical forecasting techniques and judgement to construct demand estimates for products or services across the supply chain from the suppliers raw materials to the consumer's needs.

Rough-Cut Capacity Planning

Vocab: The process of converting the Master Production Schedule into requirements for key resources, often including labor, machinery, warehouse space, suppliers, capabilities, and in some cases money. A comparison to available or demonstrated capacity is usually made for each key resource. This comparison assists the Master Scheduler in establishing a feasible Master Production Schedule.

Continuity

Vocab: The unbroken and consistent existence or operation of something over time. Something ongoing for a long time without being changed or stopped. Uninterrupted connection, succession, or union. AN organization's strategic and tactical capability to plan for and respond to conditions, situations, and events as necessary to maintain supply chain operations at an acceptable predefined level.

Service Capacity

Vocab: The volume that a service system can handle while maintaining standards of quality and performance. The number of customers per a specific me period that the company's service system is designed to serve.

Carbon Emissions

Vocab: They are greenhouse gases that are the highest levels of emissions. It is when carbon dioxide is released into the air when fossil fuels (coal/oil) are burned. They affect the environment significantly and can cause global warming and climate change.

2/10 Net Payment Terms

Vocab: Trade credit extended to the buyer from the seller. The buyer will receive a 2% discount on the net amount if they pay the invoice in full within the first 10 days of the invoice date. If not, the full invoice amount is due in 30 days.

Intangible

Vocab: Unable to be touched or grasped; not having a physical presence.

Offshoring

Vocab: When a company has its production/operations work completed in another country, and that company also has complete control of all aspects of the operation. The practice of basing a business or part of a business in a different country, usually because this involves paying less tax or other costs.

Balking

Vocab: When a person, who would otherwise have entered a line, decides not to enter it.

Corruption

Vocab: When something goes awry. It's dishonest and fraudulent patterns in people who have power that usually involves bribery/extortion.

Term Sheet

Vocab: Written document that includes the important terms and conditions of a deal. Summarizes the key points of the agreement set by both parties, before executing the legal agreements and starting off with time-consuming due diligence

Capacity Constraint

Vocab: A resource that has a limitation or restriction. Any resource that, if its capacity is not carefully managed, is likely to compromise the throughput of the organization.

Labor

Vocab: Any type of work, usually hard physical work.

Negotiation Walk Away

Vocab: The alternative that a negotiator will act on if they are not successful in a negotiation.

Beginning Inventory

Vocab: A statement of the inventory count at the end of last period, usually from a perpetual inventory record.

Closing Condition

Vocab: An obligation that each party must satisfy in the time period between the acquisition agreement and actual closing.

Queue

Vocab: Receiving orders and those orders are waiting to be served.

Expense

Vocab: The cost required for something. The money spent on something

Capacity Planning

Vocab: The process of determining the amount of capacity required to produce in the future. This process may be performed at an aggregate level, at the master-scheduling level, and at the material requirements planning level.

Ethical Sourcing

Vocab: The process of ensuring that the products made are obtained through responsible and sustainable methods. This includes ensuring that the workers who make the products are paid a fair wage and all human rights are met, the factories are clean and safe environments to work in, and that all social and environmental aspects of production to the workers and the surrounding communities are considered.

Resource Depletion

Vocab: The process of getting rid of raw materials in a specific region to use to make certain products.

Order Packing

Vocab: The process of packing all the items for an order into an appropriate container before shipping it to the customer.

Warehousing

Vocab: The process of storing physical inventory for sale or distribution.