LSCM 320 Terms: Demand Management: -?Focused efforts to estimate and manage customers? demand, with that intention of using this information to shape operating decisions??being proactive - objectives: forecasting or anticipating customers? needs Phantom Freight and Freight Absorption -Phantom Freight: Freight charges that you never see ( Positive Number) --- Buyers pay more for freight chargers. -Freight Absorption: Transportation that is far away (negative number)--- Buyer pays lower freight charges Freight Pricing FOB destination- Seller usually includes FOB destination in the price of the product. FOB destination- Seller owns the freight and seller pays for the freight FOB destination, Freight collect- Seller owns freight but buyer pays for freight to carrier FOB destination, Freight prepaid and chargeback- seller owns freight seller pays for freight but the buyer pays them back Freight pricing origin-Free for origin/seller?the buyer owns the freight which means the ship wont be paid till the buyer receives it FOB origins, prepaid freight- The buyer owns the freight but the seller prepaid FOB origin, prepaid freight and charge back?The buyer owns freight but seller prepays for the freight but the buyer pays them back Cost of lost sale 1. going to a different stores 2. Different breands 3. Can turn into a cost of a lost customer Trade-off: 1. Cycle time / lead time Order cycle length?is the time an order is place to the time it is delivered.
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