Term
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Definition
| demand for final products, can not be derived from higher level demand |
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Term
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Definition
| components of products derived from independent demand. Demand can be calculated from forecast of independent demand. |
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Term
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Definition
| past data used to predict future demand |
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Term
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Definition
| time series where each increment of past demand data is decreased by a smoothing constant. |
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Term
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Definition
| a parameter in exponential smoothing that controls the reaction speed to differences between forecast and actual demand. |
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Term
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Definition
| a parameter used in exponential smoothing as a trend correction adjustment. |
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Term
| Mean absolute deviation (MAD) |
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Definition
| the average forecast error using the absolute values of the error of each past forecast. |
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Term
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Definition
| A measure that indicates whether the forecast average is keeping pace with any upward or downward changes in demand |
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Term
| Linear regression forecasting |
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Definition
| a forecasting technique that assumes that past data and future projections fall around a straight line. |
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Term
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Definition
| a situation in which one event causes another |
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Term
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Definition
| a mixture of forecasting techniques combined in a simulation approach to determine a best approach to forecasting. |
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Term
| Collaborative Planning, Forecasting and Replenishment (CPFRP) |
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Definition
| an internet tool to coordinate forecasting, production and purchasing in a firm’s supply chain |
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Term
| Fixed-order quantity model (Q model) |
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Definition
| replenishment quantity is fixed and triggered by inventory dropping to a given level |
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Term
| Fixed-time period model (P model) |
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Definition
| orders are at end of predetermined time period. Time period is fixed and order quantity varies |
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Term
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Definition
| on-hand + on-order - back-order quantities |
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Term
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Definition
| extra inventory carried as a hedge against demand and supply variability |
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Term
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Definition
| a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year |
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Term
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Definition
| term used to identify an item of inventory |
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Term
| Materials requirement planning (MRP) |
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Definition
| the logic for determining the number and timing of parts, components, and materials needed to produce a product. |
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Term
| Manufacturing resource planning (MRP II) |
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Definition
| an expanded version of MRP that integrates finance, accounting, accounts payable, and other business processes into the production scheduling and inventory control functions that are a part of a basic MRP system. (ERP) |
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Term
| Master Production Schedule (MPS) |
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Definition
| a time phased plan specifying how many and when the to build each end item. |
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Term
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Definition
| a file that contains the complete product description, listing the materials, parts, and components and the sequence in which the product is created. |
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Term
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Definition
| an MRP system that calculates the impact of a change in the MRP data immediately. |
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Term
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Definition
| the use of actual data from the on-going production system to continually update the MRP system |
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Term
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Definition
| hybrid production planning systems that combine the information integration and planning capabilities of MRP with the response of a JIT kanban system |
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