Abbreviations Flashcards
ERP
Enterprise Resource Planning = A software system that organizations use to manage and integrate the key parts of their business operations, such as finance, human resources, manufacturing, supply chain, services, and procurement
VMI
Vendor Managed Inventory: the producers taking care of the resupply in the shelves of the supermarkets
KPI
Key performance indicator
ROI
Return on Investment
VAL
Value-added logistics
VUCA
Volatile – Uncertain - Complex – Ambiguous
AS/RS:
Automate storage and retrival system (robotic rooms that process, can achieve higher thoughput, thoughput is the capaticy you have that can be handle in a certain period of time)
TCO
Total cost of ownership
3PL
third party logistics (the supplier is the 3rd party)
JIT
just in time (to supply our end customers)
CAD
Computer Aided Design
CCP
customer order commit point
COCP
customer order commit point
Rack-jobbing
related to consignment stocks but in this case instead of putting a little display in a retail store you are putting and actual person next to itReverse buying = Instead of a company seeking suppliers and negotiating deals, suppliers compete to fulfill a company’s needs. The buyer specifies the products or services they require, often through an online platform, and suppliers submit proposals to offer the best price or terms.
electronic data interchange
a technology that allows the electronic exchange of business documents between organizations in a standardized format. it enables companies to share important information like purchase orders, invoices, shipping notices and other documents without the need for manual processes like paper based systems, emails or faxes
supply chain management software
help organizations efficiently manage and optimize their supply chain processes, from raw materials procurement to product delivery to customers. It enhances the flow of goods, information, and finances along the supply chain, aiming to improve collaboration, reduce costs and increase efficiency
radio frequency identification
a wireless technology that uses chips to identify and track tags attached to objects. the tags contain electronically stored information, and RFID is commonly used for tracking inventory, managing assets and improving supply chain efficiency
DSN (data source name)
refers to a centralized system for managing and accessing data connections in applications, typically within databases or integrated software environments. it stores connection information such as database names, driver details, host servers, usernames and passwords that applications need to access specific data sources
SKU
stock keeping unit = barcode = detailed information about individual stock keeping units
MPS
Master production schedule
1PL
first party logistics refers to companies managing their own logistics and transportation of goods. they own the transportation assets such as trucks ships or planes, and directly handle the movement of products
2PL
in second party logistics, a company outsources transportation or warehousing services to a service provider. however these providers usually focus on specific tasks such as transport or storage without managing the entire logistics process. the client maintains control over other logistics activities. exaple: a company hires a shipping line, trucking company, or airline to move goods from point a to point b. the transportation provider owns the transport assets
3PL
Third-Party Logistics is the outsourcing of logistics operations to a provider that manages a broader range of activities. This could include transportation, warehousing, inventory management, packaging. 3PL providers integrate more into the customer’s supply chain, acting as an extension of their logistics operations.
4PL
Fourth-Party Logistics manages the entire supply chain on behalf of the client.
porters generic business strategies
target: broad/narrow
advantage: cost/product oriented
porters generic business strategies list
cost leadership strategy
differentiation strategy
(narrow) focus strategy(low cost)
(narrow) focus strategy (differentiation)
efficient supply chains
primary goal: supply demand at lowest cost
product design strategy: maximize performance at a minimum product cost
pricing strategy: lower margins because price is a prime customer driver
manufacturing strategy: lower cost through high utilisation
inventory strategy: minimize inventory to lower cost
lead time strategy: reduce, but not at the expense of costs
supplier strategy: select based on cost and quality
responsive supply chains
respond quickly to demand
create modularity to allow postponement of product differentiation
higher margins because price is not a prime customer driver
maintain buffer inventory to deal with demand/supply uncertainty
reduce aggressively, even if the costs are significant
select based on speed, flexibility, reliability and quality
logistical drivers
facilities
inventory
transport
cross functional drivers
information
sourcing
drivers of supply chain performance
facilities
inventory
transportation
sourcing
pricing
information is used when making decisions about
facility
inventory
transportation
sourcing
pricing and revenue management
information technology
total order costs
F*D/Q
inventory costs
hpq/2
total costs
TC=FD/Q + hPQ/2
what is Q
the order quantity where total cosst of ordering and the inventory is lowest
what is F
costs per order
What is D
demand quantity
h*P
inventory cost per unit
FTL
full truck load, not only depth but also height
cash2cash C2C
cycle roughly measures the average amount time from when cash enters the process as cost to when it returns as collected revenue
supply chain manager, avg days in stock
40 days
purchasing manager, avg payment suppliers
30 days
sales manager, avg pay from customers
50 days
to calculate C2C
40+50-30=60 days
stock turns/inventory turnover
measures the performance of inventory and is calculated by dividing the yearly cost of goods by the average value of the stocks. in other terms how many times a year are stocks refreshed
turnover time of inventory
measures the average time goods are kept in inventory and is calculated by first calculating the turnover speed of the inventory. then express this turnover speed in number of days a year
VMI
vendor managed inventory
the producers taking care of the resupply in the shelves of the marker
1. make to stock
2. assemble to order
3. make to order
4. engineer to order
MTO (make to order)
Raw material
ATO (Assemble to order)
Semi finished good
MTS (Make to stock)
Finished good
PTO
Pack to order
strategic
year + concerns
develop, deploy and invest
tactical
months,years concerns
forecast sales
demand planning
supply planning
operational
weekly concerns
manage orders
program operations
execute and release orders
qualitative techniques
survey
expert groups
saales force composite: sales force reflection
test markets
quantitative techniques
time series
analytic method
causal
simulations
techniques for forecasting
qualitative
time series
causal
simulation
observed demand
systematic component + random component
systematic component
measures expected value of demand
level
trend
seasonality
random component
part of forecast that deviates from systematic part
forecast error
difference between forecast and actual demand
time series
a sequence of data poins, measured typically at successive times spaced at uniform time intervals.
time series analysis
consists of methods for analyzing time series data in order to extract meaningful statistics and other characteristics of the data
methods
static or adaptive
risk
too much emphasis on past events to predict future events
moving average
Used when demand has no observable trend or seasonality
Systematic component of demand = level
SIMPLE EXPONENTIAL SMOOTHING:
Used when demand has no observable trend or seasonality
Systematic component of demand = level
HOLT’S MODEL:
Used when the demand is assumed to have a level and trend in the systematic component of demand but no seasonality
Systematic component of demand = level + trend
WINTER’S MODEL:
Appropriate when the systematic component of demand has a level, trend, and seasonal factor
Systematic component = (level + trend) x seasonal factor
Exponential smoothing
is a rule of thumb using the exponential window function technique for smoothing time series . Whereas in the simple moving average data the past observations are weighted equally, exponential functions are used to assign exponentially decreasing weights over time.
the bias:
average deviation forecast on demand over a longer period
the mape
absolute error % per time bucket
forecast accuracy
this parameter will show how accurate your forecast was
100% = perfect forecast
calculate FA
1- (absolute error/Actualy demand) *100
absolute error
error/actual demand
traditional buying-selling
supplier
(order and delivery)
customer warehouse
(sales)
shop
vendor managed inventory VMI
supplier
(sales info, forecast, stock info, delivery)
customer warehouse
(sales)
shop
Bottom-up approach:
Decisions or strategies are made based on input from employees at lower levels, which eventually shape organizational policies
Top-down approach:
Executives set the company’s goals and strategies, which are then broken down into smaller tasks for different departments.
