Term
| Sales and Operations planning |
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Definition
| Term used to refer to the process a firm uses to balance supply and demand |
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Term
| Production Rate, Workforce Level, Inventory |
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Definition
| When doing aggregate planning, these are the three general operations - related variables that can be varied |
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Definition
| A strategy where the production rate is set to match expected demand |
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| Stable Workforce - Variable Work Hours |
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Definition
| When overtime is used to meet demand and avoid the cost associat3ed with hiring and firing |
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Definition
| A strategy that uses inventory and backorders as part of the strategy to meet demand |
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Definition
| Sometime a firm may choose to have all or part of the work done by an outside vendor. This term used for the approach |
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Definition
| In a service setting, what general operations - related variable is not available compared to a production setting |
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Definition
| The practice of allocating capacity and manipulating demand to make it more predictable |
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Term
| Enterprise Resource Planning ERP |
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Definition
| Term used for a computer system that integrates application programs for the different functions in a firm |
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Term
| Material Requirement Planning (MRP) |
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Definition
| Logic used to calculate the needed parts, components, and other materials needed to produce an end item |
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Term
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Definition
| This drives the MRP calculations and is a detailed plan for how we expect to meet demand |
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Term
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Definition
| Period of time during which a customer has a specified level of opportunity to make changes |
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Definition
| This identifies the specifies materials used to make each item and the correct quantities of each |
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Term
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Definition
| These are order that have already been released and are to arrive in the future |
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Term
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Definition
| This is the total amount of time required for a particular item |
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Term
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Definition
| This is the amount needed after considering what we currently have in inventory and what we expect to arrive in the future |
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Term
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Definition
| The planned order receipt and planned order release are offset by this amount of time |
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Term
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Definition
| These are the part quantities issued in the planned order release section of an MRP report |
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Definition
| Ordering exactly what is needed each period without regard to economic considerations |
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Term
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Definition
| None of the techniques for determining order quantity consider this important noneconomic factor that could make the order quantity infeasible |
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Definition
| This refers to the inherent value of the product in the marketplace and is a strategic decision for the firm |
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Definition
| Relates to how well a product or service meets design specifications |
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Definition
| Relates how the customer views quality dimensions of a product or service |
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Definition
| The series of international quality standards |
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Term
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Definition
| What is the enemy of good quality |
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Term
| 2 parts per billion units |
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Definition
| A Six-Sigma process that is running at the center of its control limits would expect this defect rate |
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Term
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Definition
| The standard quality improvement methodology developed by General Electric |
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Definition
| Variation that can be clearly identified and possibly managed |
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Definition
| Variation inherent in the process itself |
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Definition
| An alternative to viewing an item as simply good or bad due to it falling in or out of the tolerance range |
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Definition
| Quality characteristics that are classified as either conforming or not conforming to specification |
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Definition
| A quality characteristic that is actually measured, such as the weight of an item |
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Definition
| A quality chart suitable for when an item is either good or bad |
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Term
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Definition
| A quality chart suitable for when a number of blemishes are expected on each unit, such as a spool of yarn |
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Term
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Definition
| Useful for checking quality when we periodically purchase large quantities of an item and it would be very costly to check each unit individually |
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Term
| Operating Characteristic Curve |
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Definition
| A chart that depicts them manufacturer's and consumer's risk associated with a sampling plan |
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Term
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Definition
| Model most appropriate for making a one-time purchase of an item |
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Term
| Fixed - Time Period Model |
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Definition
| Model most appropriate when inventory is replenished only in fixed intervals of time, for example, on the first Monday of each month |
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Term
| Fixed - Order Quantity Model |
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Definition
| Model most appropriate when a fixed amount must be purchased each time an order is placed |
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Term
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Definition
| Based on an EOQ-type order criterion, what cost must be taken to zero if the desire is to have an order quantity of a single item |
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Term
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Definition
| Term used to describe demand that can be accurately calculated to meet the need of a production schedule, for example |
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Definition
| Term used to describe demand that is uncertain and needs to be forecasted |
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Term
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Definition
| This is an inventory auditing technique where inventory levels are checked more frequently than one time a year |
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Definition
| Refers to how common an item is or how many subsitutes might be avaliable |
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Term
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Definition
| When a customer allows the supplier to manage an item or group of items |
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Term
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Definition
| A phenommenon characterized by increasied variation in ordering as we move from the customer to the manifacturer in the supply change |
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Term
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Definition
| Products that satisfy basis needs and do not change much over time |
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Term
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Definition
| Products with short life cycles and typically high profit margins |
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Term
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Definition
| A supply cange that must deal with high levels of both supply and demand uncertainty |
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Term
| Multiple sources of supply (pooling) |
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Definition
| In order to cope with high levels of supply uncertainity, a firm would use this stratey to reduce risk |
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Definition
| Used to describe functions related to the flow of material in a supply chain |
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Definition
| When a firm works with suppliers to look for opportunities to save money and benefit the enviornment |
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Term
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Definition
| Refers to an estimate of the cost of an item that includes all costs related to the procurement and use of an item, including the cost of disposing after its useful life |
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Term
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Definition
| This is the art and science of obtaining, producing, and distributing material and product in the proper place and quantitates |
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Definition
| A company that is hired to handle logistics function |
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Term
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Definition
| A mode of transportation that is the most flexible relative to cost, volume, and speed of delivery |
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Term
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Definition
| When large shipments are broken down directly into smaller shipments for local delivery |
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Term
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Definition
| Sorting goods is the main purpose of this type of warehouse |
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Definition
| A place where foreign goods can be brought into the US without being subject to normal customs requirements |
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Term
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Definition
| The main cost criterion used when a transportation model is used for analyzing a logistics network |
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Term
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Definition
| The Microsoft Excel function used to solve the transportation model |
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Term
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Definition
| For the transportation model to be able to find a feasible solution, this must always be greater than or equal to demand |
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Term
| Allocation of demand to a plant or warehouse |
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Definition
| The changing cells in a transportation model represent this |
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Definition
| This is a method that locates facilities relative to an X, Y grid |
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Definition
| A technique that is useful for screening potential locations for services |
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Term
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Definition
| Exisitng replenishment orders at the beginning of period |
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Term
| Projected Available Balance |
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Definition
| The current and projected inventroy status at the end of a period |
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Term
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Definition
| Planned replenishment of orders for the beginning of each of the next period |
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Term
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Definition
| Moving processes of common parts to the same time |
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Term
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Definition
| Design; Measure; Analyze; Improve; Control |
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Term
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Definition
DEFINE
-Identify customers and their priorities
-identify a [project suitable for 6-sigma efforts
-identify CTQ's (critical-to-quality characteristics) |
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Term
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Definition
MEASURE
-Determine how to measure the process and how it is performing
-Identify the key internal processes that influence CTQ's and measure the defects currently generated relative to these processes |
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Term
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Definition
ANALYZE
-Determine the most likely causes of defect
-Understand why defects are generated by identifying the key variables that are most likely to create process variation |
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Term
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Definition
IMPROVE
-Modify the process to remove the causes of defects |
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Term
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Definition
CONTROL
-Monitor the process to ensure that improvements are actually made and maintained |
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Term
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Definition
1. Maintain independence of operations
2. Meet variation in demand
3. Allow for flexibility
4. provide safeguard for variation in raw material delivery time
5. take advantage of purchase order sizes |
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Term
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Definition
1. Remove echelons - independent distributors
2. Communicate better with customer
3. Shorten lead times |
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Term
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Definition
Low Demand Uncertainty
Low Supply Uncertainty
Single Source
High Volume
Minimum Inventory
Ex. Grocery |
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Term
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Definition
High Demand Uncertainty
Low Supply Uncertainty
Single source
Larger inventory - stock-out is expensive
Ex. High end computers / Fashion |
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Term
| Risk-Hedging Supply Chain |
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Definition
Low Demand Uncertainty
High Supply Uncertainty
Multi- source resource
Same as Efficient Supply Chain
Ex. Hydro Electric Power / Agricultural |
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Term
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Definition
High Demand Uncertainty
High Supply Uncertainty
Multi-source inventory
Carry Inventory or have extra capacity
Ex. Telecom / Biomedical |
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Term
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Definition
| The amount released into inventory after a Planned Order Release has been placed |
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Term
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Definition
| COGS / Avg. Aggregate Inventory Value |
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Term
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Definition
| (Avg. Aggregate Inventory Value / COGS) * 52 |
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