ABC Analysis – a method of classifying inventory items depending on use and value
Aggregate Plans – show the overall production planned for classes of products in a given period of time
Agile Strategy – aims at providing quality customer service by reacting quickly and in the right way to changing circumstances
Andon – a mechanism that shows when a process is operating normally, and when it develops problems
B2B – (business-to-business dealings) where a business buys goods from another business
B2C – (business-to-customer dealings) where a final consumer buys a good from a business
Backorder – a situation where the demand of a customer cannot be met from stock, but the customer waits for the good to come into stock
Batching Rule – a rule for minimizing the MRP costs by making larger batches form several small ones
Bill of Materials – a list of all materials that make up a certain product, and the order in which the materials are used
Break Bulk – the process in which an item is broken down into smaller amounts before delivery to customers
Business Strategy – the strategic ideas and decisions that affect a business as a whole
Capacity – a process’s maximum throughput in a given time
Causal Forecast – an approach that uses a known relationship to estimate the value of a variable from known values of another
Closed Loop MRP – an MRP version that includes feedback to ensure a proposed schedule does not cause problems with, e.g. capacity
Co-Managed Inventory – a situation where stocks are jointly managed by an organization and a third party
Consumables – sets of materials which are not part of the final product but are needed to support operations
Control System – a scheduling system segment that scrutinizes progress and ensures everything is going according to plan
Cross-Docking – links delivery and supply such that arriving goods are taken straight to loading area ready for delivery to customers
Customer – anyone that creates demand for goods
Demand – amount of goods wanted by customers
Destock – reduce amount of stock held
Economic Order Quantity – order size minimizing simple inventory system costs
Electronic Data Interchange – a way of transferring data directly among remote computers
Error – difference between forecast value and actual value
FIFO – first-in-first-out convention of valuing stock
Forecast – estimation of what could happen in the future
Forecast Value – difference between forecast value and actual value
Holding Cost – the cost of keeping the unit of an item in stock for specific time
Information System – the system responsible for the control of information flow throughout an organization
Inventory – list of goods in stock
Item – a single article held in stock
Item Coding – an arrangement for giving an identified tag to every package of items moved
Judgmental – a forecasting method that uses human knowledge and skill rather than more formal means
Lead Time – the difference between time of order and time of delivery
LIFO – last-in-first-out stock valuing convention
Lost Sales – when customer withdraws their demand because it cannot be met
Lot Sizing – making one large order form several small ones for MRP
Mass Customization – an operations approach that combines the flexibility of customized goods with the benefits of mass production
Master Schedule – a timetable for individual commodity production
Material – anything kept in stock
Material Requirements Planning (MRP) – demand method whereby the master schedule is exploded to find demand directly
Mean Error – a measure of bias in a forecast
Mission – statement showing aims and purpose of an organization
Noise – irregular time series variations
Order – a massage from an organization to a supplier asking for delivery of items
Outsourcing – use of third party organizations to perform non-core activities
Pareto Analysis – ABC analysis
Parts List – a list of materials that make up a product and the order in which the materials are used
Pipeline Stock – items that are being moved from one place to another
Price – amount charged by seller for an item
Projective Forecast – a forecast that puts historical events in the future
Quality Circles – a group of individuals who meet to try and improve uct quality
Quick Response – extension of JIT principles to other orgs in the supply chain
Replenishment – stocking materials as replacement for used up units
Replenishment Rate – the rate at which materials are added to stock
Rule of 80/20 – ABC analysis or Pareto analysis
Safety Stock – a set of materials that are kept to cover for unexpected circumstances
Scientific Inventory Control – finding optimal ordering policies and stock levels using mathematical models
Seasonal Stock – stock that maintains stable operations through seasonal demand variations
Shortage – occurs when customer demand cannot be met from stock
SKU – stock keeping unit
Stocktaking – periodic scrutiny to get the difference between actual and recorded stock levels
Supply Chain – the series of organizations and activities products go through between the initial supplier and the final consumer
Target Stock Level – determines size of order for a periodic review method
Time Series – observations made at regular time intervals
Two-Bin System – a method of determining when it’s time to place an order by keeping the reorder level in a bin and the remaining stock in another
Unit – the standard quantity or size of an item
Unitization – putting goods into standard packages for easy movement
Vendor-Managed Inventory – has suppliers that manage both their stocks and ones held further down the supply chain
Warehouse – a location where goods are held
Work in Process – the units being worked on currently
Work in Progress – work in process
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