Definitions SC

Question 1

3PL

Answer 1

: See Third-Party Logistics Providers.

Question 2

Acquisition Costs

Answer 2

The net price plus other costs needed to purchase an item and move it to the point of use.

Question 3

Assemble-to-order ATO

Answer 3

In this type of process, products are assembled from standardized parts and modules. The flexibility in this process is in how the parts are assembled. Usually, there are several options available that allow the buyers to customize their products. The process structures used in this type of operation are repetitive, and some organizations use mass customization processes. Examples are Subway restaurants, which use an assembly line to make a customized sandwich from standardized ingredients or Home Depot paint departments, which customize colors for customers by mixing one of hundreds of standardized color choices to base white paint.

Question 4

ATO

Answer 4

See Assemble-to-order.

Question 5

Barcode

Answer 5

A symbol consisting of a series of printed bars representing values. A system of optical character reading, scanning, and tracking of units by reading a series of printed bars for translation into a numeric or alphanumeric identification code. A popular example is the UPC code used on retail packaging.

Question 6

Bill of Lading

Answer 6

A transportation contract document from shippers acknowledging specific goods have been delivered to specific locations and received by correct recipients.

Question 7

Best Practice

Answer 7

A specific process or group of processes that have been recognized as the best method for conducting an action. Best practices may vary by industry or geography, depending on the environment being used. Best practices methodology may be applied with respect to resources, activities, cost object, or processes.

Question 8

Bill of Materials

Answer 8

A comprehensive listing of the dependent demand parts and components required to manufacture and assemble final products.

Question 9

BOM

Answer 9

Bill of Materials.

Question 10

Capacity Requirements Planning (CRP)

Answer 10

Software used to ensure sufficient labor, equipment, and supplies are in place to meet production demand.

Question 11

Carrying Costs:

Answer 11

Costs of holding inventory; is derived from carrying the inventory on the books.

Question 12

Collaborative Planning, Forecasting, and Replenishment (CPFR)

Answer 12

A concept that aims to enhance supply chain integration by supporting and assisting joint practices. CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain.

Question 13

Consumer

Answer 13

Someone who purchases goods and/or services for personal use.

Question 14

Conveyor

Answer 14

Mechanism used to load and unload vehicles and/or to route items throughout the warehouse. Also can be used as an automated sorting system, of which there are four major categories: pop-up sorter, surface sorter, tilt slat sorter, and tilt tray sorter.

Question 15

Core Competency

Answer 15

Fundamental knowledge, ability, or experience in a specific area, or a skill set.

Question 16

CPFR

Answer 16

See Collaborative Planning, Forecasting, and Replenishment.

Question 17

CRM

Answer 17

Customer Relationship Management

Question 18

CRP

Answer 18

Capacity Requirements Planning.

Question 19

Customer

Answer 19

1) In distribution, the trading partner or reseller. 2) In direct-to-consumer, the end customer or user.

Question 20

Customer Relationship Management (CRM)

Answer 20

Term given to developing different strategies to serve most effectively the full range of customers that interact with the company.

Question 21

DC

Answer 21

Distribution Center

Question 22

Decline

Answer 22

As demand continues to drop, companies try to adopt product innovations to keep customers interested, but at some point, products do not appeal or meet customers’ expectations. At this stage, cost is a critical factor.

Question 23

Demand Patterns:

Answer 23

: A regular or repeating trend by which the desire for goods changes over specific time intervals. Demand patterns include stationary (even demand), trend (predictable growth or decline), seasonal (patterns that repeat cycle after cycle), cyclical (patterns that are influenced by external factors), trend with seasonality (predictable growth or decline based on cycles), and random (changes and variances that are not predictable).

Question 24

Dependent Demand:

Answer 24

A term in economics in which demand for one good or service occurs as a result of demand for another; this often occurs when the former is a component of production of the latter.

Question 25

Direct Costs

Answer 25

Costs incurred directly as expenses when items are being made.

Question 26

Distribution Center (DC)

Answer 26

The warehouse facility that processes inventory from suppliers and manufacturing for distribution in the supply chain.

Question 27

Distribution Requirements Planning (DRP)

Answer 27

Software used in the distribution system to plan how and when to have the finished items in the right place at the right time.

Question 28

Dock Leveler:

Answer 28

A device used to bridge the gap between the dock and the trailer bed of the vehicle. It may be mechanically, hydraulically, or manually operated.

Question 29

DRP

Answer 29

Distribution Requirements Planning.