Shared Flashcard Set

Details

Chapter 7
Managing Operations
24
Management
Undergraduate 3
04/24/2012

Additional Management Flashcards

 


 

Cards

Term
ABC analysis
Definition
The ranking of all items of inventory according to importance.
Term
buffer (or safety) stock
Definition
Extra inventory held to guard against uncertainty in demand or supply.
Term
bullwhip effect
Definition
A small disturbance generated by a customer produces successively larger disturbances at each upstream stage in the supply chain.
Term
carrying (or holding) cost
Definition
Several expenses that are incurred due to the fact that inventory is held.
Term
collaborative planning, forecasting, and replenishment (CPFR)
Definition
Supply chain partner firms share information and insights in order to generate better forecasts and plans.
Term
cycle counting
Definition
A process where each item in inventory is physically counted on a routine schedule.
Term
days of supply
Definition
The number of days of business operations that can be supported with the inventory on-hand.
Term
finished goods inventory
Definition
Items that are ready for sale to customers.
Term
Global Trade Item Number (GTIN)
Definition
An item identification system for finished goods sold to consumers.
Term
inventory
Definition
A supply of items held by a firm to meet demand.
Term
inventory turnover
Definition
The ratio between average inventory and the level of sales.
Term
MRO inventory
Definition
Maintenance, repair, and operating supplies.
Term
order cost
Definition
The expenses incurred in placing and receiving orders from suppliers.
Term
Pareto's law
Definition
The rule that a small percentage of items account for a large percentage of sales, profit, or importance to a company.
Term
part number
Definition
A unique identifier of a part used by a specific company.
Term
product cost
Definition
The amount paid to suppliers for products that are purchased.
Term
Raw materials and component parts
Definition
Items that are bought from suppliers to use in the production of a product.
Term
service level
Definition
A measure of how well the objective of meeting customer demand is met.
Term
setup cost
Definition
Administrative expenses and the expenses of rearranging a work center to produce an item.
Term
stockout
Definition
An event that occurs when no inventory is available.
Term
stockout (or shortage) cost
Definition
Cost incurred when inventory is not available to meet demand.
Term
transit inventory
Definition
Items being transported from one location to another.
Term
vendor-managed inventory (VMI)
Definition
The vendor is responsible for managing the inventory located at a customer's facility.
Term
work in process inventory
Definition
Inventory that is in the production process.
Supporting users have an ad free experience!