Term
| Supply Chain Reference (SCOR) model |
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Definition
| framework developed and supported by the supply chain council that seeks to provide standard descriptions of the processes, relationships, and metrics that define scm |
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| advantages of the SCOR model |
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Definition
gives individuals a common language which is important for benchmarking or coordinating with other firms
provides a template to guide the design/implementation of an orgs supply chain processes
allows managers to better understand what scm is about |
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| one of two major decision categories addressed by a strategy, includes tangible resources (buildings, equip, computer systems) |
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| one of two major decision categories addressed by a strategy, includes intangibles (policies, people, decision rules, org structure choices) |
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| mechanism by which a biz coordinates its decisions regarding structural and infrastructural elements |
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| statement that explains why an org exists. describes what's important to the org (core values), and identifies the orgs domain |
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| strategy that identifies a firm's targeted customers and sets time frames and objectives |
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| orgs strength or ability, developed over a long period, that customers find valuable and competitors find difficult to copy |
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| strategy that translates a biz strat. into specific actions for functional areas |
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| characteristics of a product/service that bear on its ability to satisfy stated needs |
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| performance dimension that considers how quickly operations and supply chains can respond to the customers unique needs |
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| decision by a firm to emphasize one performance dimension over another, based on the recognition that excellence on some dimensions may conflict with excellence on others |
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| performance dimension that differentiates a company's products and services fro its competitors, firms win a customer's biz by providing superior levels of performance on order winners |
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| performance dimension on which customers expect a minimum level of performance, superior performance on an order qualifier will not, by itself, give a company a competitive adv. |
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| actual physical locations in the supply chain network where product is stored, assembled, or fabricated. 2 major types: production and storage. |
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| encompasses all raw materials, work in process, and finished goods. changes can alter efficiency and responsiveness. |
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| moving inventory from point a to b. has many modes and routes, each with its own adv. and disadv. |
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| data and analysis concerning facilities, inventory, and transportation, costs, prices, and customers via the supply chain. potentially the biggest driver of performance b/c it directly affects each of the other drivers |
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| choice of who will perform a particular supply chain activity (storage, trans, mgmt. of info) |
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| determines how much a firm will charge for p/s that it makes available. impacts behavior of buyer of the p/s |
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| max amount a facility can process |
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| measure the fraction of capacity that is currently being used in the facility. affects both the unit cost of processing and the associated delays. costs declined as this goes up. |
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| theoretical flow/cycle time of production |
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Definition
| measures the time required to process a unit if there are absolutely no delays |
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| actual average flow/cycle time |
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Definition
| ratio of the theoretical flow time to the actual average flow time |
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| measures the number of products processed in a facility |
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| measures the average amount of inventory carried |
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| average replenishment batch size |
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| measures the average amount in each replenishment order |
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| measures the average amount of inventory on hand when a replenishment order arrives |
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| measures the fraction of orders/demand that were met on time from inventory |
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| average inbound trans cost |
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Definition
| measures the cost of bringing product into a facility as a % of sales of COGS |
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| average incoming shipment size |
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Definition
| measures the average # of units or dollars in each incoming shipment at a facility |
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| average inbound trans cost per shipment |
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Definition
| measures the cost of sending product out of a facility to the customer. identifies opportunities for greater economies of scale in inbound trans |
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| average outbound trans cost |
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Definition
| measures the cost of sending product out of a facility to the customer. should be measured per unit shipped, often measures as a % of sales. |
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| average outbound shipment size |
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Definition
| measures the average number of units or dollars on each outbound shipment at a facility |
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| average outbound trans cost per shipment |
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| measures the average trans cost of each outgoing delivery. identifies opportunities for greater economies of scale for outbound trans |
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| fraction transported by mode |
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Definition
| measures the fraction of trans using each mode of trans. used to estimate if certain modes are over/under used |
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| identifies how frequently each forecast is updated. forecast should be updated somewhat more frequently thana decision will be revistied |
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| measures the difference between the forecast and actual demand. |
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| measures the extent to which the average demand in a season is above or below the average in the year |
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| identifies the difference between the planned production/inventories and the actual values. can be used to raise flags that identify shortages and surpluses |
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| ratio of demand variability to order variability |
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Definition
| measures the standard deviation of incoming demand and supply orders place. a ratio less than one potentially indicates the existence of the bullwhip effect |
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| measures the number of days between when a supplier performed a supply chain task and when it was paid |
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| measures average price at which a p/s was purchased during the year. should be weighted by the quantity purchased at each price |
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| measures the fluctuation in purchase price during a specified period. goal is to identify the quantity purchased correlated with the price |
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| average purchase quantity |
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| measures the average amount purchase per order. goal is to identify whether a sufficient level of aggregation is occurring across locations when placing an order |
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| fraction on-time deliveries |
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| measures the fraction of deliveries from the supplier that were on time |
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| measures the quality of product supplied |
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| measures the average time between when an order is placed and the product arrives |
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| measures profit as a % of revenue. firms needs to examine a variety of metrics to optimize its pricing |
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| measures the average time between when a sale is made and when the cash is collected |
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Term
| incremental fixed cost per order |
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Definition
| measures the incremental costs that are independent of the size of the order. these include changeover costs at a manufacturing plant or order processing or trans costs that are incurred independent of shipment size at a mail order firm |
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| incremental variable cost per unit |
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| measures the incremental costs that vary with the size of the order. include picking costs at a mail order firm or variable production costs at a manufacturing plant |
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| measures the average price at which a supply chain activity was performed in a given period. average should be obtained by weighting the price with the quantity sold @ that price |
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| measures the average quantity per order |
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| measures the max and min of sale price per unit over a specified time horizon |
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| measures the max and min of the quantity sold per period during a specified time frame. goal is to understand any correlation between sales and price and any potential opportunity to shift sales by changing price over time |
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| an estimate of the future level of some variable. common variables are supply and demand levels, and prices |
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Term
| quantitative forecasting models |
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Definition
| models that use measurable, historical data to generate forecasts. 2 types; time series and causal |
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| qualitative forecasting models |
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| forecasting techniques based on intuition or informed opinion. used when data is scarce, unavailable, or irrelevant |
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| structured questionnaire submitted to potential customers, often to gauge potential demand. disadv, expensive and time consuming. |
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| panel consensus forecasting |
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| qualitative forecasting technique that brings experts together to jointly discuss and develop a forecast |
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| qualitative forecasting technique which experts work individually to develop forecasts. forecasts are then shared in a group, modifications are made, and continues until a consensus is made |
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| life cycle analogy method |
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Definition
| qualitative forecasting method that attempts to identify the time frames and demand levels for the intro, growth, maturity, and decline stages of a p/s |
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| qualitative forecasting technique which indivudals familiar with specific market segments estimate the demand within these segments. individual forecasts are then added up to get an overall forecast. |
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Definition
| series of observations arrange in chronological order |
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| time series forecasting model |
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Definition
| quantitative forecasting model that uses a time series to develop forecasts. chronology of the observations and their values are important. |
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| unpredictable movement from one time period to the next |
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