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Economic Utility
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The value or usefulness of a product in fulfilling customer needs and wants
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terms list

Economic Utility
The value or usefulness of a product in fulfilling customer needs and wants
Possession Utility
Refers to the value or usefulness that comes from a customer being able to take possession of a product
Form Utility
Refers to a product's being in a form that (1) can be used by a customer and (2) is of value to the customer
Place Utility
Refers to having products available where they are needed by customers; products are moved from points of lesser value (a warehouse) to points of greater value (a supermarket)
Time Utility
Refers to having products available when they are needed by customers
Logistics managements is the part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of orgin and the point of consumption in order to meet customers' requirements
Mass Logistics
Every customer gets the same type and levels of logisitics and service
Tailored Logistics
Groups of customers with similar logistical needs and wants are provided with logistics service appropriate to these needs and wants
widespread reductions in economic regulations
The removal of intermediaries between producer and consumer
Power Retailers
Retailers that are characterized by large market share and low prices
Collaborative Planning, Forcasting, and Replenishement (CPFR)
A practice in which trading partners share planning forcasting data to better match up supply and demand
Systems Approach
A company's objectives can be realized by recognizing he utual interdependence of the major functional areas of the firm, such as marketing, production, finance and logistics
Stock-Keeping Units (SKU)
Line items of inventory
Intrafunctional Logistics
Attempts to coordinate materials management and physical distribution in a cost-efficient manner that supports an organization's customer service objectives
Materials Management
Movement and storage of materials into a firm
Physical Distribution
Storage of finished product and movement to the customer
Total Cost Approach
Concept that suggests that all relevant activities in moving and storing products should be considered as a whole not individually
Cost Trade-Offs
Changes to one logistics activity cause some costs to increase and others to decrease
Concept that the delay of value-added actiities such as assembly productions, and packaging until the latest possible time
Landed Costs
Refers to the price of a product at the source plus transportation costs to its destination
Being out of an item at the same time there is demand for it
Sustainable Products
Products that meet present needs without compromising the ability of future generations to meet their needs
Marketing Channels
Refers to a set of institutions necessary to transfer the title to goods and to move goods from point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process
Ownership Channel
covers movement of the title to the goods
Neogtitations Channel
the channel in which buy and sell agreements are made
Financing Channel
Handles payments for goods
Promotions Channel
Concerned with promoting a new or an existing product and can be related to the financing channel becasue monetary allowances are often part of the promotion effort
Sorting Function
Bridges the discrepancy between the assortment of goods and services generated by the producer and the assortment demanded by the consumer
Logistics Channel
Plan, implements and controls
Supply Chain Management (SCM)
SCM encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities.
Supply Chain
Encompasses all activities associated with the flow and tranformation of goods from the raw material stage, through to the end user, as well as the associated information flows
Supply Chain Operations Reference-Model (SCOR)
A framework that identifies five key processes- plan, source, make, deliver, return- associated with supply chain management
Global Supply Chain Forum-Model (GSCF)
A framework that identifies eight relevant processes, such as customer relationship management, demand management, and order fulfillment, associated with supply chain management
Process Classification Framework (PCF)
A framework that is organized around 12 cross-enterprise operating and management processes, including developing vision and strategy and developing and managing human capital
Fast Supply Chain
Emphasizes a speed or time component
Agile Supply Chain
Focuses on an organization's ability to respond to changes in demand with respect to volume and cariety
Perfect Order
An order that simultaneously achieves relevant customer metrics
Lean Supply Chain
Focuses on eliminating all waste, including time, and ensuring a level schedule
Combines agility and leanness as a way to focus part of one's supply chain on a timely response to customer orders and/or product variety and another part of the supply chain on leveling out the planning requirements to smooth production output
Positive, long-term relationships between supply chain participants
Bullwhip Effect
Characterized by variablity in demand orders among supply chain participants
Supply Chain Collaboration
Cooperative, formal or informal supply chain relationships between manufacturing companies and their suppliers, business partners, or customers, developed to enhance the overall business performance of both sides
Third-Party Logistics Logistics Outsourcing Contract Logistics
The general idea behind these concepts is that one company (a manufacturer) allows a specialist company to provide it with one or more logistics functions (warehousing, outbound transportation)
Fourth-Party Logistics (4PL) Lead Logistics Provider (LLP)
General contractor that ensures that third-party logistics companies are working toward relevant supply chain goals and objectives
Supply Chain Analytics
Combines technology with manual employee effort to identify trends, perform comparisons and highlight opportunities in supply chain processes, even when large amounts of data are incolved

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