SCM definitions

Question 1

BOM

Answer 1

Listing of all subassemblies and parts going into the making of 1 product.

Question 2

Routing files

Answer 2

Information detailing the method of manufacture of a particular item.

It includes the operations to be performed, their sequence, the various work centers involved, and the standards for setup and run.

Question 3

Low level codes

Answer 3

A number that identifies the lowest level in any bill of material which a particular component appears.

Question 4

Resource plan

Answer 4

is the process of establishing, measuring and adjusting limits of long range capacity

Question 5

Rough cut capacity plan

Answer 5

The process of converting the MPS into requirements for key ressources

Question 6

Capacity requirements plan

Answer 6

The process of determining in detail the amount of labor and machine ressources required to accomplish the tasks of production

Question 7

Capacity control

Answer 7

Process of measuring production output and comparing it with the capacity plan

Question 8

forecast

Answer 8

Forecast is an estimate of future demand

Question 9

procurement

Answer 9

The management of the company’s external
resources in such a way that the supply of all goods, services, capabilities and knowledge which are necessary for running, maintaining and managing the company’s primary and support activities is secured under the most favourable conditions.

Question 10

Sourcing

Answer 10

Finding, selecting, contracting and managing the best possible source of supply for the whole company on a worldwide basis.

Question 11

Purchasing

Answer 11

The function of procuring materials, supplies and services

Question 12

Capacity

Answer 12

the capabilities of a worker, work center or machine to provide goods and services pr period of time

Question 13

Load

Answer 13

The amount of planned work and actual work released to a facility or operation for a specific span of time.

Question 14

spend management

Answer 14

Managing the outflow of funds in order to buy goods and services. The term is intended to encompass such processes as outsourcing, procurement, e-procurement, and supply chain management.

Question 15

contract management

Answer 15

The process that ensures all parties comply with a contract and fully meet their obligations.

Question 16

lead time

Answer 16

the amount of time that passes from the start of a process until its conclusion.

Question 17

Total cost of ownership

Answer 17

The sum of all the cost associated with every activity of the supply stream

Question 18

Cost of Goods sold

Answer 18

The direct material, direct labor and overhead cost associated with products sold during a given period of time

Question 19

Inventory turns

Answer 19

The number of times that an inventory turns over during a year

Question 20

Inventory days of supply

Answer 20

how many days of inventory is available at any point of time.

Question 21

EOQ

Answer 21

A type of fixed quantity model that detemines the amount of an item to be purchased at one time

Question 22

Sourcing strategy

Answer 22

Identifies for a certain sourcing category how many suppliers to contract with, what type of relationship to pursue, contract duration, type of contract to negotiate for, and whether to source locally, regionally or globally.