Session 6 Flashcards
Agile
Ability to cope with volatility in demand
Bullwhip effect
The distortion of orders along the supply chain, where small fluctuations in end customer demand result in amplification of demand upstream
Decoupling point
The point in the production process at which the base product is customised to become the end product
Demand amplification
The amplification of demand upstream in the supply chain, where downstream activities create fluctuations in demand, causing suppliers to overproduce
Electronic point of sales (EPOS) data
Electronically available data that capture, usually real time, sales to customers
Just in time inventory management
A production philosophy and set of techniques which has many components and principles, but at its core is the idea of making do with the minimum possbile level of inventory holding. Inventory is thus kept to a minimum and replenished only as it is used
Leagile supply chain
A supply chain that combines both lean and agile logistics philosophies; sometimes referred to as a hybrid strategy
Lean
Elimination of waste ‘muda’ and doing more with less (TIMWOOD)
Meet to order (MTO)
Producing products only to meet actual customer demand
Make to stock (MTS)
Producing products which is subsequently put in storage
Mass customization
Customization into various different finished products of what are often largely mass produced products
Postponement
Reconfiguration of product and process design to allow postponement of final product customization as far downstream as possible
Push and pull philosophy
Push: Materials are produced according to planned forecast
Pull: Materials are only produced and moved when they are required
Silo
Term used to describe teams or business functions operating in isolation to others
SKU
A unique version of a particular product (size, packaging, etc.)
