APICS - Basics of Supply Chain Management
Terms
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- Assemble-to-order
- An environment where a product or service can be assembled after receipt of a customer's order. The key components (bulk, semifinished, intermediate, subassembly, fabricated, purchases, packaging, etc.) used in the assembly or finishing process are planned and possibly stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products (based on the selection of options and accessories) can be assembled from common components.
- Available-to-promise (ATP)
- The uncommitted portion of a company's inventory and planned production, maintained in the master schedule to support customer order promising. The ATP quantity is the uncommitted inventory balance in the first period and is normally calculated for each period in which a MPS receipt is scheduled. In the first period, ATP includes on-hand inventory less customer orders that are due and overdue.
- Capacity Requirements Plan
- A time-phased display of present and future load (capacity required) on all resources on the planned and released supply authorizations (i.e., orders) and the planned capacity (capacity available) of these resources over a span of time.
- Finite Loading
- Assigning no more work to a work center than the work center can be expected to execute in a given time period. The specific term usually refers to a computer technique that involves calculating shop priority revisions in order to level load operation by operation
- Independent demand
- Demand for an item that is unrelated to the demand for other items. Demand for finished goods, parts required for destructive testing, and service parts requirements are examples of independent demand.
- EOQ=1
- Reducing setup time and inventory to the point where it is economically sound to produce in batches with a size of one. Often EOQ=1 is an ideal to strive for, like zero defects.
- Infinite Loading
- Calculation of the capacity required at work centers in the time periods required regardless of the capacity available to perform the work.
- Perpetual inventory
- An inventory record keeping system where each transaction in and out is recorded and a new balance is computed.
- Seasonal index
- A number used to adjust data to seasonal demand.
- SKU
- Stockkeeping Unit
- Trend
- General upward or downward movement of a variable over time, e.g., demand, process attribute.