Operations Management, 7th Edition, Chapter 11

Distribution and procurement
(page 451)
The micro-view of supply chains entails ________.
(page 451)
The purchase of goods and services from suppliers is known as _______.
Continuous replenishment
(page 451)
Supplying orders in a short period of time according to a pre-determined schedule is known as ______.
Business to Business
(page 453)
E-procurement is part of the _____________ commerce being conducted on the Internet.
(page 454)
_____________ provide a neutral ground on the Internet where companies can streamline supply chains and find new business partners.
Reverse auction
(page 454)
In a(n) _____________, a company posts contracts for items it wants to purchase that suppliers can bid on.
(page 455)
The transportation and distribution of goods and services is known as _______.
Order fulfillment
(page 455)
The process of ensuring on-time delivery of an order is known as ______.
Distribution centers
(page 457)
_________________, which typically incorporate warehousing and storage, are buildings that are used to receive, handle, store, package, and then ship products.
(page 457)
____________________moves some final manufacturing steps like assembly or individual product customization into the warehouse or distribution center.
Warehouse management system
(page 458)
An automated system that runs the day-to-day operations of a distribution center is known as a ______.
(page 462)
The key component in intermodal transportation is ______.
(page 460)
_________ are cost-effective for transporting low-value, high-density, bulk products such as raw materials, coal, minerals, and ores over long distances.
(page 460)
_______________ is the main mode of freight transportation in the United States, generating over 75% of the nation’s total freight cost each year.
Air freight
(page 461)
______ is growing particularly fast in Asia and specifically China.
lack of internet standards
(page 464)
All of the following are obstacles to global supply chain management EXCEPT __________.
(page 464)
Taxes on imported goods are known as _______.
Landed cost
(page 465)
In global trade __________ is the total cost of producing, storing, and transporting a product to the site of consumption or another port.
Value added tax
(page 465)
An indirect tax assessed on the increase value of a good at any stage of the production process to raw materials to final product is known as a ________.
(page 451)
True or False. Cross-enterprise teams coordinate processes between a company and supplier.
False. Sourcing is the selection of suppliers. Outsourcing is the purchase of goods and services from an outside supplier.
(page 452)
True or False. The purchase of goods and services from an outside supplier is known as sourcing.
(page 452)
True or False. Outsourcing is considered to be strictly a short-term tactical decision.
(page 453)
True or False. More companies tend to purchase indirect goods and services over the Internet than direct goods.
False. Retailers have shifted from buying goods in bulk and storing them to pushing inventory, storage, and final configuration back up the supply chain.
(page 457)
True or False. A common warehousing strategy for many retailers today is to buy goods in bulk and store them for future use.
False. Postponement actually pulls distribution into the MANUFACTURING process.
(pages 457-458)
True or False. Postponement actually pulls distribution into the procurement process, allowing lead times to be reduced so that demand can be met more quickly.
(page 463)
True or False. Internet transportation exchanges bring together shippers who post loads and carriers who post their available capacity in order to arrange shipments.
(page 468)
Two significant changes that prompted many U.S. companies to expand globally were the passage of NAFTA almost a decade ago and the admission of China into the World Trade Organization in 2001.

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