Exam 5: The Order Fulfillment Process: Managing the Physical Flow Infrastructure

________ creates value for customers by transforming capital, technology, labor, and materials into more highly valued products and services.

Lean operations depend on incremental productivity gains and consistent innovation.

It is typical for warehouses and distribution centers to perform light manufacturing or assembly.

Process management is a purchasing skill that modern sourcing professionals require. All of the following are elements of supplier process management except ________.

A ________ specifies the overall terms of agreement for a given time period, often 1 or more years and the total quantity purchased.

A "kanban" system is a visual system that triggers production only when parts are needed downstream.

Fill in the Blank(s) -In_______ production, inventory is reduced to minimal levels and material flows are synchronized so that as one item moves out of a workstation, another is ready to move in.

Third-party logistics (3PL) is the insourcing of a business's logistics operations.

The non-profit organization, Supply Chain Council proposes a supply chain reference model as a business standard. All of the following processes are key elements of this model except ________.

Fill in the Blank(s) -Using 3___ and sharing logistics services can improve logistical efficiency.

Fill in the Blank(s) -_______allows a company to invest in a few specific skills while relying on outsource partners to perform other vital activities.

Customer service in logistics focuses on understanding what customers want and measuring logistics performance against these customer requirements.

Fill in the Blank(s) -_______main role is to manage storage and transportation to achieve outstanding levels of order fulfillment.

"Relationship management" as a part of the purchasing process includes which of the following tasks?

Dwell time ratio evaluates the number of days inventory sits idle compared to the number of days the inventory is moving..

"Transaction management" as a part of the purchasing process includes which of the following tasks?

________ provides an estimate of what products need to be produced and when they need to be produced.

A "pull" or "kanban" system of manufacturing is driven by the amount of received inventory.

A ________ is used to clearly describe and communicate needs to sourcing and includes vital information such as item description, purchase quantity, and delivery date.

Fill in the Blank(s) -A "pull" or "kanban" system is driven by_______ demand, and it requires control and discipline to assure that materials arrive just in time to be used in production, to produce subassemblies just in time to be used in the final assembly process, and to deliver finished goods just in time to be used by the customer.