Operations and Supply Chain Management Basics

Flashcards covering key vocabulary, definitions, and concepts from Operations and Supply Chain Management.

Goods

Tangible output, produced separately from customer, storable, standardized.

Services

Intangible; cannot be patented, requires customer interaction, heterogeneous, perishable.

Planning

Determining future actions to achieve objectives.

Sourcing

Acquiring inputs such as materials and services.

Making

Transforming inputs into outputs.

Delivering

Logistics, distribution, and transportation.

Returning

Handling defective or excess products.

Benchmarking

Comparing processes to best-in-class firms.

Outsourcing

Using external suppliers for activities.

Productivity

Output ÷ Input.

Inventory Turnover

COGS ÷ Average Inventory.

Profit Margin

Net Income ÷ Sales.

Return on Assets (ROA)

Net Income ÷ Total Assets.

Triple Bottom Line

People, Planet, Profit.

Stakeholders

Anyone affected by firm decisions.

Shareholders

Owners focused on financial returns.

Push System

Production based on forecasts.

Pull System

Production based on actual demand.

Market-Pull Product

Begins with market opportunity.

Technology-Push Product

Begins with proprietary technology.

Platform Product

Built around pre-existing subsystem.

Process-Intensive Product

Process drives product design.

Customized Product

Variations made for specific orders.

High-Risk Product

High uncertainty in tech or market.

Quick-Build Product

Fast design and release cycle.

Complex System

Uses concurrent engineering.

Competitive Dimension (Cost)

Competing on low price.

Competitive Dimension (Quality)

Competing on best quality.

Simple Moving Average

Average of last n periods.

Weighted Moving Average

Weighted average of past data.

Exponential Smoothing

Time-series method with declining weights.

Causal / Linear Regression

Forecast using independent variables.

Quantitative Forecasting

Numeric, data-based models.

Qualitative Forecasting

Judgment-based methods.

Market Research

Customer surveys and studies.

Panel Consensus

Group expert opinion.

Historical Analogy

Compare to similar products.

Delphi Method

Anonymous expert forecasting.

Capacity

Maximum output over a time period.

Best Operating Level

Output where average unit cost is minimized.

Pure Goods

Low margin, commodity products.

Core Goods

Product with significant service component.

Core Services

Mix of tangible and intangible.

Utilization

Actual Output ÷ Design Capacity.

Efficiency

Actual Output ÷ Effective Capacity.

Learning Curve

Time per unit decreases as output doubles.

Cycle Time

Time between completed units.

Order Lead Time

Time from order to delivery.

Order Fulfillment Lead Time

Order receipt to completion.

Lean Manufacturing

High satisfaction, low inventory, short lead times.

Breakeven Point

Fixed Cost ÷ (Price − Variable Cost).