SCM 300 Exam 2 ASU Davila Study Guide
1. Brick-and-Mortar Business: a business that operates in a physical store without an internet presence
2. Online or E-tailing: All products and services are sold to customers through an online website. Example:
Amazon.com
3. Brick and Clicks: Companies that use both a physical store and the Web to sell their products and services.
4. Clicks and Calls: In addition to taking orders via the company website, some companies will also otter sales
via the phone. Examples: Lands' End and L.L. Bean
5. Omni-channel retailing: Retailers that are fully committed to engaging customers via catalogs, phone calls, websites,
email, internet chatrooms, social media sites or mobile apps, and of course also in stores.
6. Retail sources of supply: manufacturers, wholesalers, drop shippers
7. drop shippers: An organization that ties manufactures and/or wholesalers directly to consumers. They never
posses the product, they just take orders to fulfill by another party.
8. Chargebacks: ettectively penalties charged by retail organizations to their suppliers/vendors for any number of minor and major
supply chain ottenses
9. Collaborative Planning, Forecasting, and Replenishment (CPFR): A formalized ettort by supply chain
partners to share data and collectively develop forecast in an attempt to reduce supply chain cost through better planning
10. vendor-managed inventory (VMI): An arrangement where retailers allow vendors to monitor
in-store inventories, initiate orders/shipments to the store when inventories are low, and also bring the items into the store and onto the
shelf.
11. Last Mile: the portion of the supply chain between the final inventory holding facility and the end consumer
12. Prototype Stores: A series of stores that have common design, construction and layout. Standardized
plans that will work across many stores for chain retailers.
,13. Rationalized Retailing: This retail strategy has retail chains develop rigid control structures to develop and
manage processes such that all the retail outlets are managed in the same way. An employee would easily be able to work at almost
any store since everything is done the same way.
14. Planogram: A map of where every product goes on a retail store shelf.
15. Customers cost for waiting lines: Time
16. Company cost for waiting line: Money paid to maintain the line (employees)
17. Waiting line Input Source: The population of people that might want service
18. Waiting Line: The area in which customers wait for service
19. Waiting line Service Facility: The area in which customers actually receive service
20. Infinite population of customers: The number of possible customers that may come into the store is very
high (or unlimited). When a customer enters the system, the odds of another entering the system are not impacted in any significant
manner.
21. Finite Population of Customers: number of customers is limited
22. Balking: When a potential customer sees the line, but never joins the line because they think it looks too long
and/or too slow.
23. Reneging: When a customer joins the line, gets frustrated and leaves the line
24. λ: Lambda
25. Lambda: Number of customers arriving/unit of time
ex. 15 customers per hour
26. μ: Mu
27. Mu: Number of customers helped/unit of time
, ex. 24 customers per hour
28. ρ: Rho
29. ρ=λ/μ: Percentage of time worker is busy
30. n1=ρ[λ/(μ-λ)]: Average number of customers in the line
31. t l =ρ[1/(μ-λ): Average amount of time a customer waits in the line
32. n s =λ/(μ-λ): Average number of customers in the system
33. ρn=(1-ρ)ρ^n: Probability there are n customers in the system
34. Order size required=(Actual Demand)/(Proportion of Acceptable Product per Order): Shrinkage
Calculation. Must be performed at every stage of the supply chain in upstream direction (customer back to manufacturer)
35. Consumer demands 300 units. Retail store allows 2% theft shrinkage: -
300/(1-.002)=300/.98=306.12 or 300/(100%-2%)=300/98%, always round up, in this case 307
36. Inventory future= inventory present[(warehouse future)/(warehouse pre- sent)]: Square
Root Rule
37. bullwhip effect: the phenomenon in supply chains whereby ordering patterns experience increasing
variance as you proceed upstream in the chain
38. Causes of Bullwhip Effect: order batching, forward buying, rationing, shortage gaming
39. Everyday Low Pricing (EDLP): When suppliers resist the urge to have sales promotions and instead
otter their lowest prices each day, buyers do not see an advantage to buying in bulk
40. vendor managed inventory system (VMI): Buyers share inventory information with suppliers. Suppliers in
turn take on the responsibility of managing inventory levels for buyer by placing deliveries
41. Push System: A system in which consumer demand is known and expected. As a result a supply chain will
1. Brick-and-Mortar Business: a business that operates in a physical store without an internet presence
2. Online or E-tailing: All products and services are sold to customers through an online website. Example:
Amazon.com
3. Brick and Clicks: Companies that use both a physical store and the Web to sell their products and services.
4. Clicks and Calls: In addition to taking orders via the company website, some companies will also otter sales
via the phone. Examples: Lands' End and L.L. Bean
5. Omni-channel retailing: Retailers that are fully committed to engaging customers via catalogs, phone calls, websites,
email, internet chatrooms, social media sites or mobile apps, and of course also in stores.
6. Retail sources of supply: manufacturers, wholesalers, drop shippers
7. drop shippers: An organization that ties manufactures and/or wholesalers directly to consumers. They never
posses the product, they just take orders to fulfill by another party.
8. Chargebacks: ettectively penalties charged by retail organizations to their suppliers/vendors for any number of minor and major
supply chain ottenses
9. Collaborative Planning, Forecasting, and Replenishment (CPFR): A formalized ettort by supply chain
partners to share data and collectively develop forecast in an attempt to reduce supply chain cost through better planning
10. vendor-managed inventory (VMI): An arrangement where retailers allow vendors to monitor
in-store inventories, initiate orders/shipments to the store when inventories are low, and also bring the items into the store and onto the
shelf.
11. Last Mile: the portion of the supply chain between the final inventory holding facility and the end consumer
12. Prototype Stores: A series of stores that have common design, construction and layout. Standardized
plans that will work across many stores for chain retailers.
,13. Rationalized Retailing: This retail strategy has retail chains develop rigid control structures to develop and
manage processes such that all the retail outlets are managed in the same way. An employee would easily be able to work at almost
any store since everything is done the same way.
14. Planogram: A map of where every product goes on a retail store shelf.
15. Customers cost for waiting lines: Time
16. Company cost for waiting line: Money paid to maintain the line (employees)
17. Waiting line Input Source: The population of people that might want service
18. Waiting Line: The area in which customers wait for service
19. Waiting line Service Facility: The area in which customers actually receive service
20. Infinite population of customers: The number of possible customers that may come into the store is very
high (or unlimited). When a customer enters the system, the odds of another entering the system are not impacted in any significant
manner.
21. Finite Population of Customers: number of customers is limited
22. Balking: When a potential customer sees the line, but never joins the line because they think it looks too long
and/or too slow.
23. Reneging: When a customer joins the line, gets frustrated and leaves the line
24. λ: Lambda
25. Lambda: Number of customers arriving/unit of time
ex. 15 customers per hour
26. μ: Mu
27. Mu: Number of customers helped/unit of time
, ex. 24 customers per hour
28. ρ: Rho
29. ρ=λ/μ: Percentage of time worker is busy
30. n1=ρ[λ/(μ-λ)]: Average number of customers in the line
31. t l =ρ[1/(μ-λ): Average amount of time a customer waits in the line
32. n s =λ/(μ-λ): Average number of customers in the system
33. ρn=(1-ρ)ρ^n: Probability there are n customers in the system
34. Order size required=(Actual Demand)/(Proportion of Acceptable Product per Order): Shrinkage
Calculation. Must be performed at every stage of the supply chain in upstream direction (customer back to manufacturer)
35. Consumer demands 300 units. Retail store allows 2% theft shrinkage: -
300/(1-.002)=300/.98=306.12 or 300/(100%-2%)=300/98%, always round up, in this case 307
36. Inventory future= inventory present[(warehouse future)/(warehouse pre- sent)]: Square
Root Rule
37. bullwhip effect: the phenomenon in supply chains whereby ordering patterns experience increasing
variance as you proceed upstream in the chain
38. Causes of Bullwhip Effect: order batching, forward buying, rationing, shortage gaming
39. Everyday Low Pricing (EDLP): When suppliers resist the urge to have sales promotions and instead
otter their lowest prices each day, buyers do not see an advantage to buying in bulk
40. vendor managed inventory system (VMI): Buyers share inventory information with suppliers. Suppliers in
turn take on the responsibility of managing inventory levels for buyer by placing deliveries
41. Push System: A system in which consumer demand is known and expected. As a result a supply chain will
