Term
| Existing Building Capacity |
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Definition
| The following is an input to the Sales and Operations Planning (S&OP) process |
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Term
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Definition
| Sales and Operations Planning can be used in services as well as manufacturing. One strategy to improve a service operation is to smooth out demand. An example of this is called: |
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| "Any idle resource held for future use- those stocks or items used to support production (raw materials), supporting activities (drill bits) and customer service (finished goods, spare parts)" |
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Term
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Definition
| A company which sources raw materials and components from overseas will hold extra inventory of thoese items due to a mismatch between the timing of customer demand and supply chain lead times. |
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Definition
| The following cost increases as order size goes up |
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Definition
| A company makes tools, such as hammer and tape measures. One of heir primary raw materials is steel and if they run out of steel they cannot make tools. The inventory level for steel is constantly monitored and when the reorder point is reached, an order is released for the economic order quantity. The tool company uses the following independent demand inventory system for steel. |
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Term
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Definition
| "A philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity" |
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Term
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| A philosophy of production that emphasizes the minimization of the amount of resources (including time) used in the various activities of the enterprise. It involves identifying and eliminating non-value-added activities in design, production, supply chain management, and dealing with customers. |
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Definition
| Any activity that does not add value to the good or service in the eyes of the consumer |
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Term
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Definition
| A production system in which actual downstream demand sets off a chain of events that pulls materials through the various process steps. (Kanban system is a tape of this system) |
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Definition
| A production control approach that uses containers, cards, or visual cues to control the production and movement of goods through the supply chain |
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Definition
| A special form of the kanban system that used 1 card to control production and another card to control movement of materials |
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Definition
| A kanban card that issued to indicate when a container of parts should be moved to the nextt process step |
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Term
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Definition
| A kanban card that is used to indicate when another container of parts should be produced |
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Term
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Definition
| A set of tactical and execution level business activities that includes master scheduling, material requirements planning and some form of production activity control and vendor order management |
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Definition
| A detailed planning process that tracks production output and matches this output to actual customer orders |
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Term
| Material Requirements Planning |
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Definition
| A planning process that translates the Master Production Schedule into planned orders for the actual parts and components needed to produce the master schedule items |
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Term
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Definition
| A listing of all the subassemblies intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly |
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Term
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Definition
| Components or products that are received in bulk by a downstream partner, gradually used up and then replenished again in bulk by the upstream partner. |
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Term
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Definition
| Extra inventory that a company holds to protect itself against uncertainty in demand or replenishment time |
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Definition
| Held in anticipation of customer demand |
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Term
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Definition
| Buffer against a potential event (strike, price increase) |
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Definition
| Inventory that is used to smooth out differences between upstream production levels and downstream demand |
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Term
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Definition
| Inventory items whose demand levels are beyond a company's complete control |
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Definition
| Inventory items whose demand levels are tied directly to a company's planned production of another item |
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Definition
| inventory level for an item is checked at regular intervals and restocked to some predetermined level |
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Term
| Single-Period Inventory systems |
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Definition
| A system used when demand occurs in only a single point in time. Example: christmas trees, fresh fish |
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Term
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Definition
| Values that decision makers use to translate the sales forecast into resource requirements and to determine the feasibility and costs of alternative sales and operations plans |
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Term
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Definition
| An approach that services commonly used with highly perishable productions in which prices are regularly adjusted to maximize total profit Examples: flights, hotels |
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