CLT Supply Chain Management Flashcards

Which analysis method helps businesses prioritize inventory management by categorizing items based on value and importance?

Answer: ABC analysis

ABC analysis categorizes inventory into three groups (A=highest value, B=moderate, C=lowest) so resources can be focused on the most critical items.

What is 'cross-docking' in distribution operations?

Answer: Transferring incoming shipments directly to outbound transportation with minimal storage time

Cross-docking involves unloading goods from inbound transportation and loading them directly onto outbound vehicles with little or no intermediate storage.

What is the Economic Order Quantity (EOQ) formula designed to minimize?

Answer: Total inventory costs including ordering and holding costs

EOQ calculates the optimal order quantity that minimizes the combined total costs of ordering inventory and holding it in storage.

Which supply chain function involves managing the return of products from customers back through the supply chain?

Answer: Reverse logistics

Reverse logistics encompasses all activities related to the return of products from customers, including returns processing, repairs, recycling, and disposal.

What is the primary purpose of a Distribution Requirements Planning (DRP) system?

Answer: To determine inventory replenishment needs across distribution network locations

Distribution Requirements Planning (DRP) determines when and how much inventory should be replenished at each node in a distribution network to meet customer demand.

Which type of supply chain integrates environmentally friendly practices throughout sourcing, production, and delivery to minimize environmental impact?

Answer: Green supply chain

A green supply chain integrates environmental sustainability practices throughout all stages of the supply chain to reduce carbon footprint, waste, and energy consumption.