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Supply chain management glossary.pdf

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文档介绍:Supply Chain and Operations Management Glossary

9 February

© Linus Schrage 2003

This glossary piled in response to questions from students in the the
course: Logistics and Supply Chain Management, at the University of Chicago.

Entries tend to be arranged according to their abbreviation. Thus, Bill-Of-Material is
defined under BOM. The reasoning is that it is easier to deduce the abbreviation from a
phrase, than deduce the phrase from the abbreviation.

3PL(Third Party Logistics): The use of an outside party to perform some part of the
logistics function, typically trucking or warehousing. It is appropriate if there are
economies of scale in the logistics function.

ABC Analysis: Partition of products into three groups according to their yearly dollar
volume. A typical result is that 30% of the products(the A’s) comprise 70% of the
volume. More sophisticated control procedures are appropriate for class A products.
Very simple, cheap methods suffice for managing class C items. Similar to Pareto
analysis.

ABC(Activity Based Costing): An accounting method that attempts to closely associate
costs, particularly indirect costs, with the activities that generate the costs.
Sometimes also called transactions-based costing. The most crucial aspect of ABC is
identifying the “cost drivers”, ., number of stops on a delivery route, number of
miles on a delivery route, number of pallets delivered, etc., and then deducing the
cost rate to apply to each activity.

. Nielsen: A Chicago based supplier of industry sales data for consumer products,
., supermarkets. These data are obtained from sources such as cash register
scanners. Another supplier of such data is IRI.

Acre: unit of land measure= 4840 square yards= hectares.
640 acres=1 square mile. See SI units.

AGV(Automatic Guided Vehicle): a driverless vehicle used in warehouses and factories
to move material. I

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