Read this blog to learn 10 (more) Supply Chain Planning terms worth knowing
Previously we looked at 20 important supply chain planning terms for supply chain planning success. Topping up our previous 20 are another 10 that are part and parcel of successful supply chain planning. For the first 10 terms, visit here; for the second, check out this article.
21. Bill of Material: A listing of components, parts, and other items needed to manufacture a product, showing the quantity of each required to produce each end item.
22. Capacity Planning: The process of determining the production capacity needed by an organization to meet changing demands for its products.
23. Distribution Center: A warehouse or other specialized building, often with air conditioning or refrigeration, when necessary, which is stocked with products to be redistributed to retailers, wholesalers, or directly to consumers.
24. Inventory Analysis: The examination of inventory to determine the optimum amount to keep on hand.
25. Material Requirements Planning (MRP): Coordination of materials required to meet dependent demand. Materials and resources are allocated to produce products, ensuring the materials are available and in stock based on the required quantities.
26. Purchasing Lead Time: The total length of time between the decision to purchase an item and its availability to be shipped from the supplier. This includes the order lead-time, the production lead time, and any time necessary for packaging or preparation for dispatch.
27. SKU Rationalization: A method used to reduce the number of SKUs based on underperformance or duplication.
28. Seasonal Demand: The expected fluctuation in demand is influenced by external factors depending on the time of year.
29. Supply Chain Cost Optimization: Managing supply chain costs effectively to achieve the best possible return on investment while ensuring reliable supply.
30. Supply Chain Resiliency: A supply chain's capacity for resistance and recovery in the face of uncertainty.
Ready for more? You’ll find many of the words, phrases and concepts from our three “top terms” articles in play in our eBook, No more hide-and-seek for Supply Chain uncertainty, a guide for discovering and managing supply chain variability.