2. Learning Objectives
LEARNING OBJECTIVES
What is supply chain management?
How do supply chains add value?
How does a supply chain work?
How is a supply chain managed?
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17. Which of the following is a common activity
associated with logistics management?
A. demand forecasting.
B. inventory control.
C. return goods handling.
D. order processing.
E. all of the above.
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18. Marketing managers often focus on ____________, while logistics
managers focus on _____________, causing conflict when trying to
provide value to customers.
A. maximizing sales; minimizing costs
B. presentation; packaging
C. cross-tracking; double accounting
D. minimizing costs; maximizing sales
E. decentralization; centralization
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20. Check Yourself
1. What are the various supply chain links
associated with each information flow
step?
2. What is the difference between push and
pull supply chains?
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24. Inbound Transportation
Dispatcher coordinates
deliveries
Manufacturer may pay
transportation
expenses or retailers
may negotiate directly
with trucking
companies and pay
expenses
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28. Shipping Merchandise to Stores
Shipping merchandise
to stores is complex
for multi-store chains
Distribution centers
use sophisticated
routing and scheduling
systems
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29. RFID tags have dramatically reduced the
time and labor associated with:
A. the Four Ps.
B. promotion and advertising.
C. checking and receiving merchandise.
D. franchising.
E. demand forecasting.
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30. For a JIT system to be successful, the firm and its
vendors need to do all of the following EXCEPT:
A. cooperate.
B. compete.
C. develop EDI systems.
D. develop CPFR systems.
E. share data.
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31. Check Yourself
1. What happens at each step of the
merchandise flow in a typical supply chain?
2. Why are just-in-time supply chain systems
becoming so popular?
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36. Check Yourself
1. What are the different types of vertical
marketing systems?
2. How do firms develop strong strategic
partnerships with their supply chain
partners?
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38. Glossary
Manufacturers can ship merchandise either directly
to a store or to a distribution center, where it is
then shipped to the store.
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39. Glossary
Electronic data interchange (EDI) is the computer-
to-computer exchange of business documents
from a retailer to a vendor and back.
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40. Glossary
Just-in-time inventory systems are inventory
management systems designed to deliver less
merchandise on a more frequent basis than
traditional inventory systems.
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41. Glossary
Radio frequency identification (RFID) tags are tiny
computer chips that automatically transmit to a
special scanner all the information about a
container’s contents or individual products.
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42. Glossary
A strategic relationship or partnering relationship
involves the supply chain members being
committed to maintaining the relationship over
the long term and investing in opportunities that
are mutually beneficial.
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43. Glossary
Supply chain management is a set of approaches and
techniques firms employ to integrate their suppliers,
manufacturers, warehouses, stores, and transportation
intermediaries into a seamless operation in which
merchandise is produced and distributed in the right
quantities, to the right locations, and at the right time, as
well as to minimize system wide costs while satisfying the
service levels that their customers require.
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44. Glossary
Vendor-managed inventory (VMI) is an approach
for improving supply chain efficiency in which the
manufacturer is responsible for maintaining the
retailer’s inventory levels in each of its stores.
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