Ownership and Risks in Supply Chain

Play an AI-generated podcast conversation about this lesson

Which component of physical distribution involves the process of moving customer orders through multiple channels?

Order processing (correct)

Material Handling

Warehousing

Inventory Control

What are some sub-functions of order processing according to Dr. Manjari?

Dues collection (correct)

Quality control

Stocking

Dispatching

What is the primary concern of the business in relation to order processing?

Improving transportation efficiency

Achieving customer service goals (correct)

Optimizing material handling

Reducing warehouse costs

What is the main objective of having suitable inventory policies in physical distribution?

Reducing total cost of physical distribution Signup and view all the answers

What is the potential consequence of not having enough inventories on hand in physical distribution?

Decreased customer satisfaction Signup and view all the answers

Which component of physical distribution involves the trade-off between excess inventory costs and not satisfying customer demand?

Inventory Control Signup and view all the answers

What is one way companies assist their channel partners in rationalizing transaction processes?

By providing expert advice to enhance operations Signup and view all the answers

Which factor influences the service level provided by companies to their channel partners?

Nature of the industry Signup and view all the answers

What is the significance of 'desired lot size' in service outputs according to Dr. Manjari?

Determines the number of units a typical customer can purchase at once Signup and view all the answers

Customers increasingly prefer faster delivery channels due to which service output?

Waiting and delivery time Signup and view all the answers

Why do companies need to identify service outputs for each segment of target buyers?

To optimize distribution strategy for each major segment Signup and view all the answers

According to Dr. Manjari, what decides the service level provided by companies?

Affordability and matching competition Signup and view all the answers

What is the task called when goods are kept collected in stock to supply them at the right time and place to customers?

Inventory management Signup and view all the answers

What does Economic Order Quantity (EOQ) focus on?

Minimizing total expense in ordering goods Signup and view all the answers

Why is having both short stock and large stock dangerous for a company?

Short stock leads to unfulfilled demand while large stock increases holding costs Signup and view all the answers

What is the purpose of Safety Stock in inventory management?

To ensure no shortage of goods at any time Signup and view all the answers

In ABC analysis of inventory management, which group includes costly goods?

A class Signup and view all the answers

'Just in Time' (JIT) method of inventory control focuses on what principle?

Receiving very small amounts of goods at the right time Signup and view all the answers

In the context of distribution channel transaction flows, what is the role of channel members in negotiation?

Supporting the overall competitiveness of the channel system Signup and view all the answers

How have channel members expanded their order management capabilities with the advancement of technology?

By enabling customers to place orders through personal computers, tablets, and mobile devices Signup and view all the answers

What is the function of financial management software mentioned in the text in relation to payment flow?

Facilitating channel payment flows Signup and view all the answers

How have many companies streamlined the transaction functions involved in channel stock replenishment?

By implementing point-of-sale (POS) systems Signup and view all the answers

Which entity is often involved in facilitating channel payment flows according to the text?

Banks and other financial institutions Signup and view all the answers

How do channel members contribute to the ordering flow in the supply chain?

By placing customer and channel replenishment orders Signup and view all the answers

What is the primary difference between merchant wholesalers and consignment selling?

Merchant wholesalers take ownership and possession of inventory, while consignment sellers only take possession. Signup and view all the answers

What are some risks associated with companies in the supply chain taking ownership of goods?

Potential loss due to shifts in demand and carrying costs. Signup and view all the answers

How can channel members mitigate risks associated with holding excess inventory in the supply chain?

Centralizing warehousing of slow-selling inventory. Signup and view all the answers

What is involved in the transfer of ownership of goods between businesses in the supply chain?

Negotiating price and other sales terms. Signup and view all the answers

Which strategy aims to reduce the number and quantities of SKUs in the supply channel?

Reducing excess pools of inventory in the supply channel. Signup and view all the answers

What is a key role that channel members take on regarding product satisfaction?

Guaranteeing satisfaction and accepting returns for full credit. Signup and view all the answers