2013duplex flashcards mod1

7/29/2019 2013duplex Flashcards Mod1

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Anticipation inventories Backorder

Balanced scorecard Balance sheet

Benchmarking Blanket purchase order

Buffer Business plan

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DefinitionAn unfilled customer order or commitment. An immediate

(or past due) demand against an item whose inventory is

insufficient to satisfy the demand.

DefinitionAdditional inventories above basic pipeline stock to cover

projected trends of increasing sales, planned sales

promotion programs, seasonal fluctuations, plant

shutdowns, and vacations.

DefinitionA financial statement showing the resources owned, the

debts owed, and the owner's share of a company at a given

point in time.

DefinitionA list of financial and operational measurements used to

evaluate organizational or supply chain performance. The

dimensions of this might include customer perspective,business process perspective, financial perspective, and

innovation and learning perspectives. It formally connects

overall objectives, strategies, and measurements. Each

dimension has goals and measurements.

DefinitionA long-term commitment to a supplier for material against

which short-term releases will be generated to satisfyrequirements.

DefinitionComparing a company's costs, products, and services to

that of a company thought to have superior performance.

Definition1) A statement of long-range strategy and revenue, cost,

and profit objectives usually accompanied by budgets, aprojected balance sheet, and a cash flow statement. Usually

stated in terms of dollars and grouped by product family. It

is then translated into synchronized tactical functional

plans through the production planning process. 2) A

document consisting of the business details prepared by an

entrepreneur to plan for a new business.

Definition1) A quantity of materials awaiting further processing. It

can refer to raw materials, semifinished stores or holdpoints, or a work backlog that is purposely maintained

behind a work center. 2) In the theory of constraints, these

can be time or material and support throughput and/or due

date performance. They can be maintained at the

constraint, convergent points, divergent points, and

shipping points.


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Carrying cost Cash flow

Cash-to-cash cycle time Changeover

Collaborative planning,forecasting, and replenishment

(CPFR)

Competitive analysis

Cost of goods sold Cost of quality

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DefinitionThe net flow of dollars into or out of the proposed project.

The algebraic sum, in any time period, of all cash receipts,

expenses, and investments.

DefinitionThe cost of holding inventory, usually defined as a

percentage of the dollar value of inventory per unit of time.

Definition1) The work required to change a specific machine,

resource, work center, or line from making the last good

piece of item A to making the first good piece of item B. 2)The refitting of equipment to neutralize the effects of the

last lot produced.

DefinitionAn indicator of how efficiently a company manages its

assets to improve cash flow. (Inventory days + accounts

receivable days - accounts payable days).

DefinitionAn analysis of a competitor that includes its strategies,

capabilities, prices and costs.

Definition1) A collaboration process whereby supply chain trading

partners can jointly plan key supply chain activities fromproduction and delivery of raw materials to production and

delivery of final products to end customers. It encompasses

business planning, sales forecasting, and all operations

required to replenish raw materials and finished goods. 2)

A process philosophy for facilitating collaborative

communications. It is considered a standard, endorsed by

the Voluntary Interindustry Commerce Standards.

DefinitionThe cost associated with providing poor quality products

or services. There are four categories of costs: (1) internalfailure costs; (2) external failure costs; (3) appraisal costs;

and (4) prevention costs.

DefinitionAn accounting classification useful for determining the

amount of direct materials, direct labor, and allocatedoverhead associated with the products sold during a given

period of time.


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Cross-selling Customer relationship

management (CRM)

Customer service Cycle

Cycle stock Cycle time

Decoupling Demand

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DefinitionA marketing philosophy based on putting the customer

first. The collection and analysis of information designed

for sales and marketing decision support to understand and

support existing and potential customer needs.

DefinitionOccurs when customers buy additional products or

services after the initial purchase.

Definition1) The interval of time during which a system or process,

such as seasonal demand or a manufacturing operation,

periodically returns to similar initial conditions. 2) Theinterval of time during which an event or set of events is

completed.

Definition1) The ability of a company to address the needs, inquires,

and requests from customers. 2) A measure of the delivery

of a product to the customer at the time the customerspecified.

Definition1) In industrial engineering, the time between completion

of two discrete units of production. 2) In materialsmanagement, it refers to the length of time from when

material enters a production facility until it exits.

DefinitionOne of the two main conceptual components of any item

inventory, it is the most active component; it depletesgradually as customer orders are received and is

replenished cyclically when supplier orders are received.

DefinitionA need for a particular product or component. This could

come from any number of sources. At the finished goodslevel, this is usually different from sales data because it

does not necessarily result in sales. There are generally up

to four components: cyclical component, random

component, seasonal component, and trend component.

DefinitionCreating independence between supply and use of

material. Commonly denotes providing inventory betweenoperations so that fluctuations in the production rate of the

supplying operation do not constrain production or use

rates of the next operation.


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Demand forecasting Demand management

Demand planning Demand shaping

Dependent demand Distributor

Enterprise resources planning(ERP)

Extrinsic forecasting method

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Definition1) The function of recognizing all demands for goods and

services to support the marketplace. It involves prioritizing

demand when supply is lacking. It facilitates the planning

and use of resources for profitable business results. 2) Inmarketing, the process of planning, executing, controlling,

and monitoring the design, pricing, promotion, and

distribution of products and services to bring about

transactions that meet organizational and individual needs.

DefinitionForecasting the demand for a particular good, component,

or service.

DefinitionThe practice of using the 4 Ps (product, pricing, placement,

promotion) and other market variables to influence the

demand of a product or service so that the demand bettermatches the available supply.

DefinitionUsing forecasts and experience to estimate demand for

various items at various points in a supply chain. Several

forecasting techniques may be used during the planningprocess. Often, families of items are aggregated in doing

this planning. Aggregation also may occur by geographical

region or by life cycle stage. Forecast demand is compared

to actual demand in order to measure and increase forecast

accuracy.

DefinitionA business that does not manufacture its own products, but

purchases and resells these products. Such a businessusually maintains a finished goods inventory.

DefinitionDemand that is directly related to or derived from the bill

of material structure for other items or end products. Suchdemands are therefore calculated and need not and should

not be forecast.

DefinitionA forecast method on a correlating leading indicator, such

as estimating furniture sales based on housing starts. Theseforecasts tend to be more useful for large aggregations,

such as total company sales, that for individual product

sales.

DefinitionFramework for organizing, defining, and standardizing the

business processes necessary to effectively plan andcontrol an organization so the organization can use its

internal knowledge to seek external advantage.


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Fluctuation inventory Forecast error

Forecasting Gross margin

Horizontal marketplace Income statement

Independent demand Interplant demand

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DefinitionThe difference between actual demand and forecast

demand, stated as an absolute value or as a percentage.

DefinitionInventory that is carried as a cushion to protect against

forecast error.

DefinitionThe difference between total revenue and the costs of

goods sold.

DefinitionThe business function that attempts to predict sales and use

of products so they can be purchased or manufactured in

appropriate quantities in advance.

DefinitionA financial statement showing the net income for a

business over a given period of time.

DefinitionAn online marketplace used by buyers and sellers from

multiple industries. This marketplace lowers prices bylowering transaction costs.

DefinitionOne plant's need for a part or product that is produced by

another plant or division within the same organization.Although it is not a customer order, it is usually handled by

the master production scheduling system in a similar

manner.

DefinitionThe demand for an item that is unrelated to the demand for

other items. Demand for finished goods, parts required fordestructive testing, and service parts requirements are

examples of this.


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In-transit inventory Intrinsic forecast method

Inventory management Inventory optimization software

Inventory turnover Inventory valuation

Inventory velocity Inventory visibility

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DefinitionA forecast method based on internal factors, such as an

average of past sales.

DefinitionMaterial moving between two or more locations, usually

separated geographically; for example, finished goods

being shipped from a plant to a distribution center.

DefinitionA computer application having the capability of finding

optimal inventory strategies and policies related to

customer service and return on investment over severalechelons of a supply chain.

DefinitionThe branch of business management concerned with

planning and controlling inventories.

DefinitionThe value of the inventory at either its cost or its market

value. Because inventory value can change with time,some recognition is taken of the age distribution of

inventory. Therefore, this is usually computed on a FIFO

basis, LIFO basis, or a standard cost basis to establish the

cost of goods sold.

DefinitionThe number of times that an inventory cycles, or "turns

over," during the year. A frequent method to compute thisis to divide the average inventory level into the annual cost

of sales.

DefinitionThe extent to which inventory information is shared within

a firm and with supply chain partners.

DefinitionThe speed with which inventory passes through an

organization or supply chain at a given point in time asmeasured by inventory turnover.


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Keiretsu Key performance indicator

(KPI)

Landed cost Logistics

Market demand Market driven

Market research Metrics

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DefinitionA financial or nonfinancial measure, either tactical or

strategic, that is linked to specific strategic goals and

objectives.

DefinitionA form of cooperative relationship among companies in

Japan where the companies largely remain legally and

economically independent, even though they work closely

in various ways such as sole sourcing and financialbacking.

Definition1) In an industrial context, the art and science of obtaining,

producing, and distributing material and product in the

proper place and in proper quantities. 2) In a military sense(where it has greater usage), its meaning can also include

the movement of personnel.

DefinitionThis cost includes the product cost plus the costs of

logistics, such as warehousing, transportation, and

handling fees.

DefinitionResponding to customers' needs.

DefinitionIn marketing, the total demand that would exist within a

defined customer group in a given geographical areaduring a particular time period given a known marketing

program.

DefinitionA system for collecting, measuring, and comparing a

measure to a standard for a specific criterion for anoperation, item, good, service, business, etc. A

performance measurement system consists of a criterion, a

standard, and a measure.

DefinitionThe systematic gathering, recording, and analyzing of data about

problems relating to the marketing of goods and services. Suchresearch may be undertaken by impartial agencies or by business

firms or their agents. It includes several types: (1) market analysisis the study of the size, location, nature, and characteristics of

markets, (2) sales analysis is the systematic study and comparisonof sales (or consumption) data, (3) consumer research is

concerned with the discovery and analysis of consumer attitudes,reactions, and preferences.


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Multisourcing Obsolescence

Optimization Ordering cost

Outsourcing Partnership

Pipeline inventory Planning horizon

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Definition1) The condition of being out of date. A loss of value

occasioned by new developments that place the older

property at a competitive disadvantage. A factor in

depreciation. 2) A decrease in the value of an asset broughtabout by the development of new and more economical

methods, processes, or machinery. 3) The loss of

usefulness or worth of a product or facility as a result of

the appearance of better or more economical products,

methods, or facilities.

DefinitionProcurement of a good or service from more than one

independent supplier.

DefinitionUsed in calculating order quantities, the costs that increase

as the number of orders placed increases. It includes costs

related to the clerical work of preparing, releasing,monitoring, and receiving orders, the physical handling of

goods, inspections, and setup costs, as applicable.

DefinitionAchieving the best possible solution to a problem in terms

of a specified objective function.

Definition1) A form of business ownership that is not organized as a

separate legal entity, but entailing ownership by two ormore persons. 2) In a supply chain, a relationship based on

trust, shared risk, and rewards aimed toward achieving a

competitive advantage.

DefinitionThe process of having suppliers provide goods and

services that were previously provided internally. Itinvolves substitutionthe replacement of internal capacity

and production by that of the supplier.

DefinitionThe amount of time a plan extends into the future. For a

master schedule, this is normally set to cover a minimumof cumulative lead time plus time for lot sizing low-level

components and for capacity changes of primary work

centers or of key suppliers. For longer term plans the

planning horizon must be long enough to permit any

needed additions to capacity.

DefinitionInventory in the transportation network and the distribution

system, including the flow through intermediate stockingpoints.


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Process chart Procurement

Profit Profit margin

Pull system Purchasing

Push system Return on assets (ROA)

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DefinitionThe business functions of procurement planning,

purchasing, inventory control, traffic, receiving, incoming

inspection, and salvage operations.

DefinitionA chart that represents the sequence of work or the nature

of events in process. It serves as a basis for examining and

possibly improving the way the work is carried out.

Definition1) The difference between the sales and cost of goods sold

for an organization, sometimes expressed as a percentage

of sales. 2) In traditional accounting, this is the productselling price minus the direct material, direct labor, and

allocated overhead for the product, sometimes expressed as

a percentage of selling price.

Definition1) Earnings from an ongoing business after direct costs of

goods sold have been deducted from sales revenue for a

given period. 2) Earnings or income after all expenses(selling, administrative, depreciation) have been deducted

from gross profit. 3) Earnings or income after adjusting for

miscellaneous income and expenses (patent royalties,

interest, capital gains) and tax from operating profit.

DefinitionThe term used in industry and management to denote the

function of and the responsibility for procuring materials,supplies, and services.

Definition1) In production, the production of items only as demanded

for use or to replace those taken for use. 2) In materialcontrol, the withdrawal of inventory as demanded by the

using operations. Material is not issued until a signal

comes from the user. 3) In distribution, a system for

replenishing field warehouse inventories where

replenishment decisions are made at the field warehouse

itself, not at the central warehouse or plant.

DefinitionNet income for the previous 12 months divided by total

assets.

Definition1) In production, the production of items at times required

by a given schedule planned in advance. 2) In materialcontrol, the issuing of material according to a given

schedule or issuing material to a job order at its start time.

3) In distribution, a system for replenishing field

warehouse inventories where replenishment decision

making is centralized, usually at the manufacturing site or

central supply facility.


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Return on investment (ROI) Reverse logistics

Reverse supply chain Risk pooling

Safety stock Sales and operations planning(S&OP)

Seasonality Service industry

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DefinitionA complete supply chain dedicated to the reverse flow of

products and materials for the purpose of returns, repair,

remanufacture, and/or recycling.

DefinitionA relative measure of financial performance that provides

a means for comparing various investments by calculating

the profits returned during a specified time period. In the

theory of constraints, it is calculated as throughput minusoperating expense divided by investment.

DefinitionA method often associated with the management of

inventory risk. Manufacturers and retailers that experience

high variability in demand for their products can pooltogether common inventory components associated with a

broad family of products to buffer the overall burden of

having to deploy inventory for each discrete product.

DefinitionMoving items from the consumer back to the producer for

repair or disposal.

DefinitionA process to develop tactical plans that provide

management the ability to strategically direct its businessto achieve competitive advantage on a continuous basis by

integrating customer-focused marketing plans for new and

existing products with the management of the supply

chain. The process brings together all the plans for the

business into one integrated set of plans.

Definition1) In general, a quantity of stock planned to be in inventory

to protect against fluctuations in demand or supply. 2) Inthe context of master production scheduling, the additional

inventory and capacity planned as protection against

forecast errors and short-term changes in the backlog.

Definition1) In its narrowest sense, an organization that provides an

intangible product. 2) In its broadest sense, allorganizations except farming, mining, and manufacturing.

DefinitionA repetitive pattern of demand from year to year (or other

repeating time interval) with some periods considerablyhigher than others.


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Single-source supplier Sole-source supplier

Sourcing Spend management

Standard costs Stockkeeping unit (SKU)

Stockout costs Strategic planning

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DefinitionThe only supplier capable of meeting (usually technical)

requirements for an item.

DefinitionA company that is selected to have 100 percent of the

business for a part although alternate suppliers are

available.

DefinitionManaging purchases of goods and services in a supply

chain including outsourcing and procurement activities.

DefinitionThe process of identifying a company that provides a

needed good or service.

Definition1) An inventory item. 2) In a distribution system, an item

at a particular geographic location.

DefinitionThe target costs of an operation, process, or product

including direct material, direct labor, and overheadcharges.

DefinitionThe process of developing a strategic plan.

DefinitionThe costs associated with a stockout. Those costs may

include lost sales, backorder costs, expediting, andadditional manufacturing and purchasing costs.


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Strategic sourcing Subcontracting

Supplier Supplier-input-process-output-

customer (SIPOC) diagram

Supplier relationshipmanagement (SRM)

Supply chain

Supply chain management(SCM)

Supply Chain OperationsReference-model (SCOR)

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DefinitionSending production work outside to another manufacturer.

DefinitionA comprehensive approach for locating and sourcing key

material suppliers, which often includes the business process of

analyzing total-spend-for-material spend categories. There is a

focus on the development of long-term relationships with tradingpartne ners who can help the purchaser meet profitability andcustomer satisfaction goals. From an information technology

applications perspective, strategic sourcing includes automationof request for quote (RFQ), request for proposal (RFP), electronic

auctioning (e-auction or reverse auction), and contractmanagement processes.

DefinitionA high-level process map that shows substantial

subprocess in an organization's process together with the

structure of the process represented by the suppliers,inputs, outputs, and customers. It defines the critical

aspects of a process without losing the overall perspective.

Definition1) Provider of goods or services. 2) Seller with whom the

buyer does business, as opposed to vendor, which is a

generic term referring to all sellers in the marketplace.

DefinitionThe global network used to deliver products and services

from raw materials to end customers through anengineered flow of information, physical distribution, and

cash.

DefinitionA comprehensive approach to managing an enterprises

interactions with the organizations that supply the goodsand services the enterprise uses. The goal of this is to

streamline and make more effective the processes between

an enterprise and its suppliers.

DefinitionA process reference model developed and endorsed by the

Supply Chain Council as the cross-industry, standarddiagnostic tool for supply chain management. It describes

the business activities associated with satisfying a

customers demand. Use of the model includes analyzing

the current state of a companys processes and goals,

quantifying operational performance, and comparing

company performance to benchmark data.

DefinitionThe design, planning, execution, control, and monitoring

of supply chain activities with the objective of creating netvalue, building a competitive infrastructure, leveraging

worldwide logistics, synchronizing supply with demand,

and measuring performance globally.


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Supply chain visibility Sustainability

Tactical buying Tactical planning

Target costing Third-party logistics (3PL)

Total cost of ownership (TCO) Trend

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DefinitionActivities that provide present benefit without

compromising the needs of future generations.

DefinitionThe ability of supply chain partners to access demand and

production information from trading partners.

DefinitionThe process of developing a set of tactical plans (e.g.,

production plan, sales plan, marketing plan).

DefinitionThe purchasing process focused on transactions and

nonstrategic material buying. It is closely aligned with the

ordering portion of executing the purchasingtransaction process. The characteristics for this include

stable, limited fluctuations, defined standard specifications,

noncritical to production, no delivery issues, and high

reliability concerning quality-standard material with very

little concern for rejects.

DefinitionA buyer and supplier team with a third party that provides

product delivery services. This third party may provideadded supply chain expertise.

DefinitionThe process of designing a product to meet a specific cost

objective. This involves setting the planned selling price,subtracting the desired profit as well as marketing and

distribution costs, thus leaving the required manufacturing

or target cost.

DefinitionGeneral upward or downward movement of a variable over

time.

DefinitionIn supply chain management, it is the sum of all the costs

associated with every activity of the supply stream. Themain insight that this offers to the supply chain manager is

the understanding that the acquisition cost is often a very

small portion of this.


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Triple bottom line (TBL) Value-added

Value chain Value stream

Value stream mapping Vendor

Warehouse management system(WMS)

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Definition1) In accounting, the addition of direct labor, direct

material, and allocated overhead assigned at an operation.

2) In current manufacturing terms, the actual increase of

utility from the viewpoint of the customer as a part istransformed from raw material to finished inventory. It is

the contribution made by an operation or a plant to the

final usefulness and value of a product, as seen by the

customer.

DefinitionMeasuring the economic, social, and environmental

consequences of a firm's activities.

DefinitionThe processes of creating, producing, and delivering a

good or service to the market. For a good, this

encompasses the raw material supplier, the manufacturingand assembly of the good, and the distribution network.

For a service, this consists of suppliers, support personnel

and technology, the service producer, and the

distribution channel.

DefinitionThe functions within a company that add value to the

goods or services that the organization sells to customers

and for which it receives payment.

DefinitionAny seller of an item in the marketplace.

DefinitionDrawing the current production process/flow and then

attempting to draw the most effective productionprocess/flow.

DefinitionA system that manages all processes that a warehouse

carries out. These processes include receiving, picking, andshipping.

2013duplex flashcards mod1

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