Logistics and Supply Chain Management Review

Comprehensive vocabulary flashcards covering supply chain concepts, strategic models, production planning, forecasting, inventory control, and lean operations based on lecture notes.

Supply Chain (Försörjningskedja)

A system of interacting entities that plans, controls, and develops the flow of material and information to deliver goods and services from raw material to end product.

The 7 R's of Logistics (Försörjningskedjans 7 rätt)

Delivering the right product, in the right quantity, with the right quality, to the right place, at the right time, to the right customer, at the right price.

Lead Time (Ledtid)

The elapsed time from when the need for an activity or group of activities arises until there is confirmation that the activity or activities have been performed.

Throughput Time (Genomloppstid)

Total production time, divided into storage/purchasing lead time, manufacturing lead time, and finished goods inventory lead time.

Work in Process (Produkter i arbete - PIA)

Products currently in production between storage withdrawal and delivery to finished goods inventory or customer; includes queue time, setup time, processing time, wait time, and transport time.

Customer Order Decoupling Point (Kundorderpunkt - KOP)

The point in the value chain where a customer order is allocated to a specific product; all activities prior to this point are forecast-driven (push), while activities following it are customer order-driven (pull).

Material Profiles (A-, V-, T-, and X-profiles)

Four basic product flow structures: A-profile (converging flow with few end products), V-profile (diverging flow with many end products), T-profile (late customization close to delivery), and X-profile (many components converging to few subassemblies, then diverging into many customized end products).

Total Inventory Turnover Rate (Total lageromsättningshastighet)

The aggregate velocity of inventory flow across all stages, calculated as: $\frac{1}{\text{LOH}_{\text{tot}}} = \frac{1}{\text{LOH}_{\text{mf}}} + \frac{1}{\text{LOH}_{\text{pia}}} + \frac{1}{\text{LOH}_{\text{fvl}}}$

Order Qualifiers (Orderkvalificerare)

Baseline factors and minimum market requirements that a product must possess to enter and remain in a given market.

Order Winners (Ordervinnare)

The decisive factors or characteristics that cause a customer to choose and purchase a specific product over competing alternatives.

Internal vs. External Efficiency (Inre och yttre effektivitet)

External efficiency is doing the right things (effectiveness/market delivery capability), whereas internal efficiency is doing things right (cost and operational capability).

Scatter Plot for Assortment Analysis (Spridningsdiagram för sortimentanalys)

A tool mapping the coefficient of variation in demand on the y-axis against demand volume on the x-axis to decide whether products should be made to customer order (Group A) or made to stock (Group B).

Relative Demand Variation (Variationskoefficient)

A normalized measure of demand variability defined as: $\frac{\text{Standardavvikelse per period}}{\text{Medelvärde per period}}$

Zero-Point Inventory (Nollpunktsinventering)

Conducting stock inventory precisely when a replenishment batch is delivered, capitalizing on the moment when inventory levels are at their lowest.

Distribution Trade-offs with Number of Facilities

Increasing the number of distribution centers reduces response time and transport distances to customers, but increases facility costs, inventory levels, and total holding costs.

Center of Gravity Method (Tyngdpunktsmetoden)

A quantitative facility location technique that weights market geographic coordinates by their relative demand volume or transported freight quantity.

Perfect Order (Perfekt order)

An order where every single order line is completely and accurately delivered with the right product in the right quantity at the right time.

Hayes and Wheelwright Product-Process Matrix

A strategic model aligning product structure (volume and variety from one-of-a-kind to commodity) with manufacturing process choice (project/fixed position, job shop, batch/flow group, assembly line, and continuous flow).

Mass Customization (Masskundanpassning)

An ideal operational capability where high variety and custom products in small lot sizes are produced with the efficiency and low cost of flow-oriented production processes.

Make-or-Buy Competence Matrix

A strategic grid cross-referencing internal competence with supplier competence to decide whether to manufacture in-house, develop internal capability, buy from a supplier, develop suppliers, or form alliances.

Kraljic Portfolio Matrix (Krajlic-matrisen)

A procurement classification tool segmenting purchases by supply risk/market complexity and profit impact into Routine/Non-critical, Leverage, Bottleneck, and Strategic items.

Buyer-Supplier Dependency Matrix

A matrix mapping buyer dependence on the supplier against supplier dependence on the customer to classify power positions into buyer dominance, supplier dominance, independence, or mutual high interdependence.

Total Cost of Ownership (TCO)

All monetary expenses associated with a product across its entire lifecycle, grouped into purchase price, acquisition costs, usage/operating costs, and end-of-life costs.

Transport Mode Selection Matrix (Value vs. Volume)

A framework mapping freight value and shipment volume: high-value/low-volume goods favor air freight, intermediate goods favor road and rail, and low-value/high-volume bulk freight favors ship or pipeline.

Milk Runs (Mjölkrundor)

A transportation routing strategy where a vehicle performs sequential pickups or deliveries along a designated route to enable frequent, small-batch replenishment.

Cross-docking

A terminal practice where inbound shipments are directly consolidated and transferred to outbound vehicles with virtually no intermediate storage.

Forecasting Process Model (Prognosprocess)

A continuous planning cycle combining qualitative/subjective data and quantitative/analytical demand history to generate forecasts, followed by forecast error analysis and feedback adjustments.

Customer Order Typology Matrix

A classification matrix categorizing customer orders by order frequency (one-off vs. recurring) and degree of specification (supplier specification vs. mutual agreement).

Delphi Method (Delphi-metoden)

A qualitative forecasting method in which an expert panel makes independent, iterative assessments until group consensus is reached.

Exponential Smoothing (Exponentiell utjämning)

A time-series forecasting method weighting recent demand through a smoothing parameter: $P_{t+1} = \alpha E_t + (1 - \alpha) P_t$

Planning and Control Hierarchy

The top-down operational planning hierarchy connecting Business Plan to Sales and Operations Planning (SVP), Master Production Scheduling (Huvudplanering), Material & Capacity Planning, and Detailed Shop-Floor Planning.

Sales and Operations Planning Steps (SVP-processen)

A monthly four-step planning cycle consisting of: Step 1 (Demand Planning), Step 2 (Supply Planning), Step 3 (Pre-S&OP / Balancing Meeting), and Step 4 (Executive Decision Meeting).

Level vs. Chase Strategy (Utjämnad vs. Efterfrågeanpassad produktion)

A level strategy keeps production rates constant and absorbs demand fluctuations via inventory or order backlogs, whereas a chase strategy adjusts production capacity each period to match exact sales volume.

Master Planning and Distribution Integration

The mechanism linking multi-echelon replenishment orders from regional distribution warehouses to establish aggregate distribution requirements and drive the central master production schedule.

Demand Time Fence vs. Planning Time Fence (ETG vs. PTG)

The Demand Time Fence (ETG) defines the inner horizon where production is frozen to preserve stability, whereas the Planning Time Fence (PTG) corresponds to cumulative lead time beyond which orders can be freely planned.

Available-to-Promise (Möjligt-att-lova - ATP)

The uncommitted portion of company inventory and planned production maintained in the master schedule to commit delivery dates to new customer inquiries.

Economic Order Quantity (Ekonomisk orderkvantitet - EOK)

The order size that minimizes total annual inventory holding and ordering costs: $\text{EOK} = \sqrt{\frac{2 \times S \times E}{r \times V}}$

Reorder Point System (Beställningspunktsystem - BP)

An inventory control mechanism that triggers a fixed replenishment quantity whenever available stock falls to or below: $\text{BP} = \text{SL} + E \times L$

Safety Stock (Säkerhetslager - SL)

Buffer inventory held to protect against demand uncertainty and lead time variability, calculated as: $\text{SL} = k \times \sigma_L = k \times \sigma \times \sqrt{L}$

Periodic Review System (Periodbeställningssystem)

An inventory control policy where stock levels are reviewed at fixed intervals $I$ and an order is placed up to a target replenishment level: $\text{ÅN} = \text{SL} + E \times (L + I)$

Net Requirements Calculation (Nettobehovsberäkning)

The material requirements planning step computing unfulfilled demand after netting: $\text{Nettobehov}(t) = \max(0, \text{Bruttobehov}(t) - \text{Inleverans}(t) - \text{Lager}(t-1))$

Drum-Buffer-Rope (Trumma-buffert-rep)

A Theory of Constraints scheduling methodology where the bottleneck acts as the drum setting pace, time buffers protect throughput before the constraint, and the rope controls order release.

Little's Law (Littles lag)

A fundamental queuing and flow equation relating average inventory $I$, throughput rate $R$, and flow time $T$: $I = R \times T$

Jidoka

A lean pillar representing autonomation or automation with a human touch—designing processes to instantly detect defects and halt production to prevent passing on flaws.

Single-Minute Exchange of Die (SMED)

A lean setup reduction methodology designed to reduce changeover times to under 10 minutes by separating and converting internal setup operations into external setup activities.

Bullwhip Effect (Bullwhip-effekten)

The phenomenon where small fluctuations in end-consumer demand amplify into increasingly large demand oscillations as information moves upstream in the supply chain.