UNIT 8

Lead times

Safety margins added to demand forecasts because they are not always accurate, often incorporated in push strategies.

Inventory management

Balancing the quantity of items at different locations and at different stages in the production process.

Freight forwarder

A person who organizes the transport of goods by sea, air, road, or rail and deals with customer requests about modes of transport.

Push strategies

An inventory strategy that involves pushing products through the supply chain to meet forecasted demand.

Flowchart

A diagram that represents a process or sequence of steps in a clear and structured way.

Logistics

The business activity that involves planning, implementing, and controlling the physical flow of materials and information from points of origin to points of consumption.

Inbound logistics

Involves bringing raw materials and goods from suppliers to producers.

Outbound logistics

Manages the flow of finished products and information to business buyers and ultimate consumers.

Reverse logistics

Brings goods back to the manufacturer due to defects or for recycling.

Procurement

Acquiring the necessary raw materials and components for production.

Warehousing

Storing goods before and after production.

Transportation

Moving goods from one location to another.

Distribution

Delivering finished goods to customers.

Manual

Done with the hands.

Replenish

To fill something up again.

Pull strategy

Relies on actual customer demand to drive production and distribution.

Push strategy

Focuses on producing based on forecasted demand, regardless of actual customer demand.

Logistician

A specialist in logistics.

Supply chain

A network of facilities involved in the procurement, transformation, and distribution of products to customers.

Customs clearance

The act of passing goods through customs to enter or leave a country.

Cargo

Goods carried by a ship, aircraft, or other vehicles.

Lead times

The time taken from the initiation of a process until its completion.