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Enterprise Resource Planning (ERP)
a computer system that integrates application programs in accounting, sales, manufacturing, and the other functions in a firm
Material Requirements Planning (MRP)
a planning system that schedules the precise quantity of materials needed to make the product
Master Production Schedule (MPS)
A part of the material requirements plan that details how many end items will be produced within specified periods of time
Frozen
No change allowed
Slushly
Limited changes allowed
Liquid
Any changes allowed
Available to Promise
# of units in master schedule - actual customer orders
Bill of Materials (BOM)
document that shows an inclusive listing of all component parts and assemblies making up the final product
Modular Bills
Not final products but components that can be assembled into multiple end items
Planning Bills (pseudo/super bills)
groups subassemblies to reduce the number planned
Phantom Bills
Describe subassemblies that exist only temporarily
Are part of another assembly and never go into inventory
Projected Available Balance
onhand balance - safety stock
Net Requirements
gross - projected available
lot-for-lot (L4L)
an order for the exact amount needed
Least Total Cost (LTC)
carrying and setup costs are mostly equal
Least Unit Cost (LUC)
lot size with lowest unit cost
Stragetic Sourcing
management of supplier relationships to acquire goods/services to achieve the immediate and future needs of the business
Specificity
how common an item is
Request for Proposal (RFP)
a process through which buying organizations invite alternative suppliers to bid on supplying their required components
Vender Managed Inventory
Inventory which is restocked automatically by vendors regardless of a customer's orders
Bullwhip Effect
occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain
Forward Buying
a retailer's stocking up on a product when it is discounted and buying smaller amounts when it is at list price
Continuous Replenishment
supplying orders in a short period of time according to a predetermined schedule
Functional Products
staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations. Longer product life and low lead time
Innovative Products
products such as fashionable clothes and personal computers that typically have a life cycle of just a few months. Unpredictable demand
Stable Products
Evolving Products
Efficient Supply Chain
utilize strategies aimed at creating the highest cost efficiency
Responsive Supply Chain
focus on flexibility and responsive service and are able to react quickly to changing market demand and requirements
Risk-hedging supply chains
utilize strategies aimed at pooling and sharing resources in a supply chain to share risk
Agile Supply Chain
focuses on an organization's ability to respond to changes in demand with respect to volume and variety. Flexible to customer needs
Total Cost of Ownership (TCO)
All of the costs associated with the design, development, testing, implementation, documentation, training and maintenance of a software system.
green sourcing
Making environmentally conscious decisions throughout the purchasing process, beginning with product and process design, and through product disposal
Inventory turnover
cost of goods sold/average inventory
weeks of supply
avg. inventory/cogs X 52
days of supplu
avg. inventory/cogs X 356
Lead Time
the time needed to respond to a customer order
Decoupling Point
Point at which inventory is stored, which allows SC to operate independently
lean manufacturing
the production of goods using less of everything compared to mass production, increases customer service
Production Process
source, make, deliver
make to stock
serve customers from finished goods inventory
assemble to order
preassembled components, subassemblies, and modules are put together in response to a specific customer order
make to order
product is built directly from raw materials and components in response to a specific customer order
engineer to order
Work with the customer to design and then make the product
Little's Law
inventory = throughput rate x flow time
Project
Product in fixed location, equipment is moved
workcenter
similar equipment grouped together
manufacturing cell
produces similar products
assembly line
progressive steps
continuous process
liquids
work cycle time
c = production time per day / output per day
efficiency
total /# of workstations (workcycle time)
breakeven (demand)
fc/$-vc
breakeven (revenue)
fc/1-vc/$
Single Period
one time purchase
fixed order quantity
maintain same stock, resupply when inventory reaches a certain level
fixed time period
order at same intervals of time
independent demand
the demands for various items are unrelated to each other
dependent demand
the need for any one item is a direct result of the need for some other item, usually an item of which it is a part
logistics
the process of coordinating and moving material from one location to another
hub and spoke
one hub and multiple regional locations
cross docking
A technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded onto outbound trucks, thereby avoiding warehouse storage.
