Competitive Strategy and Supply Chain Management

The ability to offer a diverse range of products to customers.

Technical support provided by a supplier to aid in product development.

The ability to meet a predetermined launch date for a new product.

Assistance provided by a supplier after a product has been purchased.

The environmental impact of a product or its production.

A concept that describes the trade-offs businesses face when trying to excel in all aspects of competition.

A strategy where companies attempt to match competitors by adding features, services, or technologies to their existing offerings.

A marketing-oriented dimension that sets a product apart from the competition.

A basic requirement for a product to be considered for purchase.

A method for analyzing different production methods or equipment choices, especially when significant upfront investment and fixed costs are involved, and variable production costs are proportional to units produced.

A visual representation of break-even analysis, showing at what production volume a particular option becomes more favorable than another.

One-time purchasing of a product, often for a specific event or season.

The point at which a customer's order is fulfilled from existing finished goods inventory, rather than waiting for production.

A situation where providing faster customer response requires increased investment in inventory.

The cost of holding finished goods inventory is typically higher than the cost of holding raw materials.

A workplace layout where workstations are arranged in a U-shape, allowing for flexibility and efficiency.

A layout that maximizes flexibility and efficiency, often utilizing workstations that can handle multiple tasks.

The process of transferring internal business functions or tasks to external providers.

A framework that helps managers choose the best structure for relationships with suppliers, ranging from full integration to arm's-length interactions.

The practice of incorporating environmental considerations into purchasing decisions, aiming for sustainability and cost reduction.

The total cost associated with a purchase, including all direct and indirect costs throughout the product's lifecycle.

The management of the flow of materials and information, encompassing activities like procurement, production, and distribution.

The ability of a supply chain to adapt to changing market conditions, such as unexpected demand fluctuations or supply disruptions.

A strategy that focuses on improving the environmental performance of a product throughout its lifecycle, from sourcing to end-of-life management.

The increasing speed at which products become obsolete, driven by technological advancements and changing consumer preferences.

The total cost of ownership (TCO) includes all costs associated with a product throughout its lifecycle, from purchase to disposal. These costs can be categorized into three key areas: acquisition costs (initial purchase), ownership costs (ongoing use), and post-ownership costs (disposal).

Acquisition costs are the initial expenses incurred when purchasing a product or service. These include costs like pre-purchase evaluation, supplier selection, taxes, tariffs, and transportation.

Ownership costs are the recurring expenses associated with using a product after its initial purchase. These include costs like energy consumption, maintenance, repairs, and financing.

Post-ownership costs are the expenses associated with disposing of a product once it's no longer useful. These can include costs like recycling, refurbishment, or even legal fees.

Inventory turnover measures how efficiently a company uses its inventory. It's calculated by dividing the cost of goods sold by the average inventory value. A higher turnover indicates efficient inventory management.

Weeks-of-supply measures how long a company's inventory lasts. It's calculated by dividing average inventory value by the cost of goods sold per week. A lower number indicates efficient inventory management.

Measuring sourcing performance involves evaluating how efficiently the supply chain operates. Key metrics include inventory turnover and weeks-of-supply, which assess the effectiveness of inventory management.

In supply chain management, efficiency refers to minimizing waste and maximizing resource utilization. It focuses on optimizing processes and achieving cost-effectiveness. On the other hand, effectiveness is about meeting customer needs and fulfilling their expectations.

The ability of a system to produce a certain amount of output over a specific period.

The output level at which the average cost per unit is minimized.

A measure of how close a company's current output rate is to its best operating level, expressed as a percentage.

The concept that as production volume increases, the average cost per unit decreases.

A type of capacity planning that focuses on long-term strategic decisions related to capital-intensive resources.

A process where trading partners share forecasts and adjust them to reach agreement.

The process of replenishing inventory based on the agreed upon forecast.

Concerns and doubts regarding collaboration and sharing information between partners.

The process of predicting future demand for products or services, typically over a short timeframe.

Points in the supply chain where inventory is strategically placed to decouple different parts of the process, impacting customer lead times and inventory management.

A type of forecasting that relies on historical data to predict future demand. It uses statistical models to identify trends and patterns in demand.

A type of time series forecasting method that averages past demand values to predict future demand. It assigns weights to recent data, giving more importance to more recent observations.

A time series forecasting method that uses an exponentially weighted average of past demand values. It assigns exponentially decreasing weights as observations get older.

A type of forecasting that assumes demand is influenced by external factors or variables. It analyzes the relationship between demand and these factors to predict future demand.

A type of forecasting that uses computer simulations to create multiple possible demand scenarios. It simulates various scenarios based on different assumptions to understand the range of potential outcomes.

Fluctuations in demand that occur over long periods of time, often driven by economic cycles, political events, or other long-term trends.