Supply Chain Management Review

This set of flashcards provides essential vocabulary and definitions related to supply chain management concepts, facilitating study for the upcoming exam.

Supply Chain Management

The coordination of a network of independent partners creating and delivering a product or service to customers.

Inbound Transportation

The movement of materials or products into a business from suppliers.

Outbound Transportation

The movement of finished products from a business to customers.

Suppliers

Entities that provide raw materials or products to manufacturers.

Tier 1 Supplier

The direct supplier to a manufacturer, with whom the manufacturer has a primary relationship.

Independent Demand

Demand for an item that is not influenced by the demand for other items.

Dependent Demand

Demand for an item that depends on the demand for another item, such as components for a finished product.

Aggregate Production Plan (APP)

A hierarchical planning process that translates business plans into a production plan for a product family.

Master Production Schedule (MPS)

A detailed plan that outlines what the company plans to produce in specific product configurations, quantities, and dates.

Safety Stock

A quantity of inventory held to protect against fluctuations in demand or supply.

Mean Absolute Deviation (MAD)

A measure of forecast error, calculated as the average of the absolute differences between forecasted and actual demand.

Collaborative Planning, Forecasting, and Replenishment (CPFR)

A practice that combines the intelligence of multiple trading partners to share plans, forecasts, and delivery schedules.

Bullwhip Effect

The phenomenon where small changes in consumer demand cause larger changes in demand at the wholesale, distributor, manufacturer, and raw material supplier levels.

Exponential Smoothing

A forecasting method that uses a smoothing constant to weight the most recent data more heavily than older data.

Qualitative Forecasting Techniques

Forecasting methods based on opinion and intuition, used when data is limited or not relevant.

Quantitative Forecasting Techniques

Statistical forecasting methods that use historical data to predict future demand.