Supply Chain Planning and Execution Flashcards

What is the key difference between 'push' and 'pull' supply chain execution?

Answer: Push produces based on forecasts; pull produces in response to actual customer demand signals

Push systems build inventory based on demand forecasts, while pull systems replenish only what has been consumed by actual demand.

Which transportation mode typically offers the lowest cost per ton-mile for large, heavy shipments over long distances?

Answer: Rail

Rail transport offers the lowest cost per ton-mile for bulk and heavy freight over long distances due to high capacity and fuel efficiency.

In warehouse management, 'cross-docking' refers to:

Answer: Transferring inbound shipments directly to outbound vehicles with minimal or no storage time

Cross-docking moves products from receiving directly to shipping, bypassing traditional storage and reducing handling and holding costs.

What is the purpose of a 'Warehouse Management System' (WMS)?

Answer: To automate and optimize warehouse operations including receiving, putaway, picking, and shipping

A WMS directs and records all warehouse activities to maximize efficiency, accuracy, and throughput within the facility.

Which document serves as the primary contract between a shipper and a carrier for freight transportation?

Answer: Bill of lading

A bill of lading is the legal contract of carriage, a receipt for goods, and a document of title for freight shipments.

In distribution requirements planning (DRP), what information flows from distribution centers back to the manufacturing plant?

Answer: Time-phased net requirements for finished goods that need to be replenished

DRP consolidates replenishment needs from all distribution points and passes those requirements upstream to the manufacturing plan.