Global Supply Chain Logistics Flashcards
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Read the first 7 Global Supply Chain Logistics flashcards as text
What is the 'bullwhip effect' in global supply chains?
Answer: The amplification of demand variability as orders move upstream through the supply chain
The bullwhip effect describes how small changes in consumer demand cause increasingly larger fluctuations in orders placed by retailers, distributors, and manufacturers upstream.
In supply chain risk management, what is 'supply chain resilience'?
Answer: The capacity to anticipate, adapt to, and recover quickly from supply chain disruptions
Supply chain resilience is the ability to prepare for, respond to, and recover from unexpected disruptions while maintaining continuity of operations.
Which US government program allows exporters to verify that foreign parties are not on restricted trade lists?
Answer: Denied Party Screening / BIS Entity List checks
Denied party screening against lists like the BIS Entity List and OFAC SDN List ensures exporters do not transact with restricted or sanctioned parties.
What is 'total cost of ownership' (TCO) in the context of global sourcing decisions?
Answer: The complete cost of acquiring, using, and disposing of a product including hidden costs
TCO in global sourcing includes purchase price, transportation, duties, quality costs, inventory carrying costs, supplier management, and all other costs over the product's life.
What is the main advantage of using a 4PL (Fourth-Party Logistics) provider?
Answer: Single point of contact managing the entire supply chain including multiple 3PLs
A 4PL acts as a supply chain integrator that manages and orchestrates the entire supply chain, including overseeing multiple 3PL providers on behalf of the client.
In international ocean shipping, what is a 'vessel sharing agreement' (VSA)?
Answer: An arrangement where multiple carriers share space on each other's vessels to optimize route coverage
A VSA is a cooperative agreement between ocean carriers to share vessel capacity on specific trade lanes, allowing each carrier to offer broader route coverage.
What does 'inventory turnover ratio' measure in supply chain management?
Answer: How many times inventory is sold and replaced within a given period
Inventory turnover ratio measures how many times a company sells and replenishes its inventory in a given period, indicating inventory efficiency.