Term
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Definition
| the planning and controlling of inventories in order to meet the competitive priorities of the organization |
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Term
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Definition
| the quantity of an inventory item management either buys from a supplier or manufactures using internal processes |
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Term
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Definition
| an individual item or product that has an identifying code and is held in inventory somewhere along the supply chain |
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Term
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Definition
| the process of dividing SKUs into three classes according to their dollar usage so that managers can focus on items that have the highest dollar value |
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Term
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Definition
| an inventory control method whereby storeroom personell physically count a small percentage of the total number of items each day, correcting errors that they find. |
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Term
| economic order quantity (EOQ) |
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Definition
| the lot size that minimizes total annual inventory holding costs |
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Term
| time between orders (TBO) |
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Definition
| the average ellapsed time between receiving or placing replenishment orders of Q units for a particular lot size |
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Term
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Definition
| items for which demand is influenced by market conditions and is not related to the inventory decisions for any other item held in stock or produced |
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Term
| continuous review system (Q system) |
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Definition
| a system designed to track the remaining inventory of a SKU each time a withdrawal is made to determine whether it is time to reorder |
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Term
| reorder point (ROP system) |
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Definition
| see continuous review system |
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Term
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Definition
| the measurement of a SKU's ability to satisfy future demand |
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Definition
| orders that have been placed but have not yet been received |
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Term
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Definition
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Term
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Definition
| the predetermined minimum level that an inventory position must reach before a fixed quantity Q of the SKU is ordered |
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Term
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Definition
| the desired probability of not running out of stock in any one ordering cycle, which begins at the time an order is placed and ends when it arrives in stock |
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Term
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Definition
| the period over which safety stock must protect the user from running out of stock |
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Term
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Definition
| a system that allows employees to place roders when inventory visibly reaches a certain marker |
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Term
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Definition
| a visual system version of the Q system in which a SKU's inventory is stored at two different locations |
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Term
| periodic review system P system |
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Definition
| a system in which an item's inventory position is reviewed periodically rather than continuously |
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Term
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Definition
| a system of inventory control in which a maximum level is marked on the storage shelf or bin and the inventory is brought up to the mark periodically |
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Term
| perpetual inventory system |
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Definition
| a system of inventory control in which the inventory records are always current |
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Term
| optional replenishment system |
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Definition
| a system used to review the inventory position at fixed time intervals and if the position has dropped to or below a predetermined level, to place a variable sized order to cover expected needs |
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Term
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Definition
| an inventory control system that issues a replenishment order Q each time a withdrawal is made, for the same amount of the withdrawal |
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Term
| economic production lot size (ELS) |
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Definition
| the optimal lot size in a situation in which replenishment is not instantaneous |
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Term
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Definition
| a prediction of future events used for planning purposes |
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Term
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Definition
| the repeated observations of demand for a service or product in their order of occurence |
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Term
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Definition
| the act of clustering several similar services or products so that forecasts and plans can be made for whole families |
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Term
| collaborative planning, forecasting, and replenishment (CPFR) |
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Definition
| a nine step process for supply chain integration that allows a supplier and its customers to collaborate on making the forecast by using the internet |
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Term
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Definition
| a forecasting method that translates the opinions of managers, expert opinions, consumer surveys, and salesforce estimates into quantitative estimates. |
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Term
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Definition
| a quantitative forecasting method that uses historical data on independent variables, such as promotional campaigns, economic conditions, and competitor's actions, to predict demand |
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Term
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Definition
| a statistical approach that relies heavily on historical demand data to project the future size of demand and recognizes trends and seasonal patterns |
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Term
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Definition
| the forecasts that are compiled from estimates of future demands made periodically by members of a company's salesforce |
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Term
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Definition
| a forecasting method in which the opininos, experience, and technical knowledge of one or more managers are summarized to arrive at a single forecast. |
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Term
| technological forecasting |
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Definition
| an application of executive opinion to keep abreast of the latest advances in technology |
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Term
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Definition
| a systematic approach to determine external consumer interest in a service or product by creating and testing hypotheses through data gathering surveys |
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Term
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Definition
| a process of gaining consensus from a group of experts while maintaing their anonymity |
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Term
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Definition
| a causal method in which one variable (the dependent variable) is related to one or more independent variables by a linear equation |
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Term
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Definition
| the variable that one wants to forecast |
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Term
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Definition
| variables that are assumed to affect the dependent variable and thereby cause the results observed in the past |
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Term
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Definition
| a time series method whereby the forecast for the next period equals the demand for the current period or forecast=Dr |
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Term
| simple moving average method |
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Definition
| a time series method used to estimate the average of a demand time series by averaging the demand for the n most recent time periods (3 in class) |
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Term
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Definition
| the difference found by subtracting the forecast from actual demand for a given period |
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Term
| weighted moving average method |
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Definition
| a time series method in which each historical demand in the average can have its own weight; the sum of the weight = 1.0 |
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Term
| exponential smoothing method |
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Definition
| a weighted moving average method that calculates the average of a time series by giving recent demands more weight than earlier demands |
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Term
| trend adjusted exponential smoothing method |
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Definition
| the method for incorporating a trend in an exponentially smooth forecast |
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Term
| multiplicative seasonal method |
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Definition
| a method whereby seasonal factors are multiplied by an estimate of average demand to arrive at a seasonal forecast |
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Term
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Definition
| a method in which the seaonsal forecasts are generated by adding a constant to the estimate of average demand per season |
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Term
| cumulative sum of forecast errors (CFE) |
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Definition
| a measurement of the total forecast error that assesses the bias in a forecast |
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Term
| mean squared error MSE, standard deviation, and mean absolute deviation (MAD) |
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Definition
| a measurement of the dispersion of forecast errors |
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Term
| mean absolute percent error (MAPE) |
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Definition
| a measurement that relates the forecast error to the level of demand and is useful for putting forecast performance in the proper perspective |
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Term
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Definition
| a measure that indicates whether a method of forecasting is accurately predicting actual changes in demand |
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Term
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Definition
| actual demands from the more recent time periods in the time series that are set aside to test different models developed from the earlier time periods |
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Term
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Definition
| a method of forecasting that selects the best forecast from a group of forecasts generated by individual techniques |
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Term
| operations planning and scheduling |
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Definition
| the process of balancing supply with demand from the aggregate level down to the short term scheduling level |
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Term
| sales and operations plan |
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Definition
| a plan of future aggregate resource levels so that supply is in balance with demand. it states a company's production rates , workforce levels, and inventory holdings that are consistent with demand forecasts and capacity constraints. the s&op is time-phased meaning that it is projected for several time periods into the future |
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Term
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Definition
| another term for sales and operations plan |
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Term
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Definition
| a manufacturing firm's sales and operations plan that centers on production rates and inventory holdings |
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Term
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Definition
| a sales and operations plan for a service firm which centers on staffing and on other human resource related factors |
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Term
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Definition
| an intermediate step in the planning process that lies between sales and operations and scheduling. it determines requirements for materials and other resources on a more detailed level than s&op |
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Term
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Definition
| a detailed plan that allocates resources over shorter time horizons to accomplish specific tasks |
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Term
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Definition
| a group of customers, services, or products that have similar demand requirements and common processes, labor, and materials requirements |
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Term
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Definition
| a projected statement of income, costs, and profits |
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Term
| annual plan or financial plan |
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Definition
| a plan for financial assessment used by a nonprofit service organization |
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Term
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Definition
| the process of changing demand patterns using one or more demand options |
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Term
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Definition
| services or products that have similar resource requirements but different demand cycles |
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Term
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Definition
| varying price at the right time for different customer segments to maximize revenues yielded by existing supply capacity |
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Term
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Definition
| an accumulation of customer orders that a manufacturer has promised for delivery at some future date |
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Term
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Definition
| the time that employees work that is longer than the regular workday or workweek for which they receive additional pay |
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Term
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Definition
| the situatiopn that occurs when employees do not have enough work for the regular time workday or workweek |
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Term
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Definition
| a strategy that involves hiring and laying off employees to match the demand forecast |
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Term
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Definition
| a strategy that keeps the workforce constant but varies its utilization via overtime, undertime, and vacation planning to match the demand forecast |
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Term
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Definition
| a strategy that considers the full range of supply options |
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Term
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Definition
| a type of scheduling that demands when employees work |
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Term
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Definition
| a schedule that rotates employees through a series of workdays or hours |
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Term
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Definition
| a schedule that calls for each employee to work the same days and hours each week |
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Term
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Definition
| determining the order in which jobs or customers are processed in the waiting line at a workstation |
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Term
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Definition
| a rule that specifies the job or customer processing sequence when several jobs are waiting in line at a workstation |
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Term
| first come, first served FCFS |
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Definition
| a priority sequencing rule that specifies the job or customer arriving at the workstation first has the highest priority |
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Term
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Definition
| a priority sequencing rule that specifies that the job or customer with earliest due date is the next job to be processed |
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Term
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Definition
| the process of completing a job or finishing with a customer sooner than would otherwise be done |
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Term
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Definition
| the amount of time a job spends in the service or manufacturing system |
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Term
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Definition
| the amount of time by which a job missed its due date |
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Term
| advanced planning and scheduling systems APS |
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Definition
| computer software systems that seek to optimize resources across the supply chain and align daily operations with strategic goals |
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Term
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Definition
| a process that takes sales and operations plans; processes information in the way of time standards, routings, and other information on how the firm produces its services or products and then plans the input requirements |
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Term
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Definition
| a companywide process that cuts across functional areas, business units, geographic regions, and product lines |
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Term
| enterprise resource planning systems ERP |
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Definition
| large, intergrated information systems that support many enterprise processes and data storage needs. |
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Term
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Definition
| the ability of one piece of software to interact with others |
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Term
| material requirements planning MRP |
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Definition
| a computerized information system developed specifically to help manufacturers manage dependent demand inventory and schedule replenishment orders |
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Term
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Definition
| a process that converts the requirements of various final products into a material requirements plan that specifies the replenishment schedules of all the subassemblies, components, and raw materials needed to produce final products |
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Term
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Definition
| the demand for an item that occurs because the quantity required varies with the production plans for other items held in the firm's inventory |
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Term
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Definition
| any product that is manufactured from one or more components |
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Term
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Definition
| an item that goes through one or more operations to be transformed into or become part of one or more parents |
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Term
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Definition
| a record of all the components of an item, the parent-component relationships, and the usage quantities derived from engineering and process designs |
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Term
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Definition
| the number of units of a component that are needed to make one unit of its immediate parent |
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Term
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Definition
| the final product sold to a consumer |
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Term
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Definition
| an item that has at least one parent and at least one component |
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Term
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Definition
| an intermediate item that is assebled from more than one component |
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Term
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Definition
| an item tha thas one or more parents but no components because it comes from a supplier |
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Term
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Definition
| the degree to which a component has more than one immediate parent |
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Term
| master production schedule MPS |
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Definition
| a part of the material requirements plan the details how many end items will be produced within specified periods of time |
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Term
| available to promise inventory ATP |
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Definition
| the quantity of end items that marketing can promise to deliver on specified dates |
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Term
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Definition
| a record that shows an item's lot size policy, lead time, and various time phased data |
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Term
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Definition
| the total demand derived from all parent production plans |
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Term
| projected on-hand inventory |
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Definition
| an estimate of the amount of inventory available each week after gross requirements have been satisfied |
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Term
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Definition
| orders that are not yet released to the shop or the supplier |
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Term
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Definition
| an indication of when an order for a specified quantity of an item is to be issued |
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Term
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Definition
| a rule that maintains the same order quantity each time an order is issued |
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Term
| periodic order quantity POQ |
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Definition
| a rule that allows a different order quantity for each order issued by issues the order for predetermined time intervals |
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Term
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Definition
| a rule under which the lot size ordered covers the gross requirements of a single week |
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Term
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Definition
| a computer generated memo alerting planners about releasing new orders and adjusting the due dates of scheduled receipts |
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Term
| capactiy requirements planning CRP |
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Definition
| a technique used for projecting time phased capacity requirements for workstations; its purpose is to match the material requirements with the capacity of key processes |
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Term
| manufacturing resource planning MRP II |
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Definition
| a system that ties the basic MRP system to the company's financial system and to other core and supporting processes |
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Term
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Definition
| a record of a service firm's parent-component relationships and all of the materials, equipment time, staff, and other resources associated with them including usage quantities |
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