SCM301 Introduction to Supply Chain Management - Vocabulary Flashcards

Vocabulary flashcards covering key SCM terms and concepts from the SCM301 lecture notes (Week 6 and related modules).

SCM (Supply Chain Management)

Management of the flow of goods, information, money, and services from origin to end customer, typically across planning, sourcing, making, delivering, and returning with cross-functional collaboration.

SCOR Model

A framework for integrating and measuring supply chain processes, organized into six categories: Plan, Source, Make, Deliver, Return, Enable.

SCOR Process Categories

Plan (aligns supply and demand), Source (acquire inputs), Make (manufacture), Deliver (fulfill orders), Return (reverse logistics), Enable (enabling activities like information systems).

Balanced Scorecard (BSC)

A strategic performance measurement framework with four perspectives: Financial, Internal Business Process, Customer, and Learning & Growth.

Triple Bottom Line (TBL)

A sustainability framework combining social, environmental, and financial performance dimensions.

Green Supply Chain Management (GSCM)

Integrating environmental thinking into SCM to improve sustainability across the supply chain.

SCOR Performance Attributes

Metrics under SCOR: Reliability (on-time delivery, order fill/accuracy), Responsiveness (lead times), Agility (flexibility), Cost (logistics, COGS), Asset Management (cash-to-cash, inventory turns).

Reliability (SCOR attribute)

On-time delivery, accurate orders, and consistent performance in fulfilling requirements.

Lead Time (SCOR attribute)

The time from order initiation to order completion or delivery.

Asset Management (SCOR attribute)

Metrics like cash-to-cash cycle time, inventory days of supply, and asset turns.

Aggregate Production Plan (APP)

A high-level production plan translating annual plans and forecasts into a product-family production plan with horizon of at least one year.

Chase Strategy

Capacity planning approach that adjusts capacity to match demand (hiring/firing, changing production levels); inventory/backlog kept constant.

Level Strategy

Production plan with a constant output rate; inventory and backlog absorb demand fluctuations.

Mixed Production Strategy

Maintains a stable core workforce while using overtime, subcontracting, or extra shifts to handle short-term demand variations.

Master Production Schedule (MPS)

Detailed disaggregation of APP listing exact end items to be produced in each period; shorter horizon than APP.

Bill of Materials (BOM)

A structured listing of all components and assemblies required for a final product; Level 0 is the final product (independent demand), Level 1 and beyond are dependent demands.

Independent Demand

Demand for finished goods or end items not dependent on other products within the BOM.

Dependent Demand

Demand for components or subassemblies that depend on the BOM for a final product.

Material Requirements Planning (MRP)

A computer-based system that calculates exact quantities and dates for subassemblies and materials, using independent demand, BOM relationships, and inventory status; outputs planned order releases.

Enterprise Resource Planning (ERP)

Integrated software platform that connects internal operations across functions, enabling data sharing and streamlined processes.

Rough-Cut Capacity Planning (RCCP)

Medium-range capacity check that converts MPS to capacity requirements and compares with available capacity.

Lead Time/Forecasting Concepts

Lead time is the total time to complete a process; forecasts estimate future demand to plan decisions.

Demand Forecasting

Estimating future demand to guide planning; uses qualitative methods (e.g., Jury of Executive Opinion, Delphi, Sales Force Composite, Customer Surveys) and quantitative methods (time series, moving averages, etc.).

CPFR (Collaborative Planning, Forecasting and Replenishment)

Joint inventory management approach through information sharing among suppliers and retailers to align planning, forecasting, and replenishment.

Sales & Operations Planning (S&OP)

A process to align demand and supply across the organization to balance operational and financial planning.

Forecast Error Metrics

Measures of forecast accuracy such as MAD (mean absolute deviation), MAPE (mean absolute percentage error), MSE (mean squared error), and RSFE (running sum of forecast errors).

Time Series Forecasting

Forecasting method that relies on historical data and patterns over time; includes simple moving average (SMA) among techniques.

Qualitative Forecasting Methods

Forecasting based on expert judgment and opinion (e.g., Delphi, executive opinions, surveys) when data is limited.

Master Production Schedule vs APP

MPS translates APP into time-phased end-item production; APP is the aggregate, higher-level plan. MPS is more detailed and time-bounded.