Supply Chain & Logistics Fundamentals Flashcards

A postponement strategy in supply chain design means:

Answer: Delaying final product differentiation until customer demand is better known

Postponement delays customization so generic inventory can serve multiple end products.

Which supply chain strategy is best suited to innovative products with unpredictable demand?

Answer: Responsive (agile) supply chain

Responsive supply chains handle demand uncertainty for innovative products better than cost-focused efficient chains.

The push-pull boundary in a supply chain marks the point where:

Answer: Operations shift from forecast-driven to order-driven

Upstream of the boundary is forecast-driven (push); downstream responds to actual orders (pull).

Vendor-managed inventory (VMI) means:

Answer: The supplier monitors the buyer's stock and decides replenishment

In VMI, the supplier takes responsibility for maintaining the customer's inventory levels.

Total landed cost includes which of the following?

Answer: Unit price plus freight, duties, insurance, and handling

Landed cost captures all costs to get a product to its destination, not just purchase price.

Reverse logistics primarily deals with:

Answer: Product returns, repairs, recycling, and disposal

Reverse logistics manages product flow from the customer back toward the origin.

Which approach is most effective at reducing supply risk from a single critical supplier?

Answer: Qualifying a second source or dual sourcing

Dual sourcing reduces dependence on one supplier and mitigates disruption risk.