PRACTICE SOLUTIONS GRADED A+
● Affiliate revenue model. Answer: Companies receive a referral fee for
directing business to an affiliate
● Appraisal cost. Answer: The cost associated with uncovering defects
● Automated order entry systems. Answer: A method using telephone
models to send digital orders to suppliers.
● Backwards integration. Answer: Owning or controlling sources of raw
materials and components.
● Benchmarking. Answer: Studying other companies business practices
for comparison.
● Bullwhip effect. Answer: Inaccurate or distorted demand information
created in the supply chain.
● Business to Business commerce. Answer: Businesses buying and
selling to other businesses.
,● Business to consumer commerce. Answer: Businesses selling to
individual consumers.
● Cause and effect diagrams. Answer: A chart that identifies potential
causes of particular quality problems.
● Checklist. Answer: A list of common defects and the number of
observed occurrences of each.
● Conformance to specifications. Answer: how well a product or service
meets the targets and tolerances set by designers.
● Continuous improvement. Answer: A philosophy of never ending
improvement.
● Control charts. Answer: Charts used to evaluate whether a process is
operating within expectations.
● Crossdocking. Answer: Eliminates storage and order picking functions
of a distribution warehouse.
● Customer defined quality. Answer: an integrated effort designed to
improve quality performance at every level of the organization.
, ● Deming Prize. Answer: Japanese award for companies to recognize
efforts in quality improvement.
● Distribution management. Answer: Responsible for the movement of
material from the manufacturer to the customer.
● Distribution warehouse. Answer: Used for short term storage,
consolidation, and product mixing.
● Distributor crossdocking. Answer: the receiving and consolidating of
inbound products from different vendors into a multi-SKU pallet.
● E-commerce. Answer: Using the internet and web to do business.
● E-distributors. Answer: Independently owned net marketplaces having
catalogs representing thousands of suppliers and designed for spot
purchases.
● E-purchasing. Answer: Companies that connect onlone MRO suppliers
to businesses that pay fees to join the market, usually for long term
contractual purchasing.
● Early supplier involment (ESI). Answer: Involvement of critical
suppliers in new product design.