Supply Chain Management: A Global Perspective

GLOSSARY

ABC Analysis A tool for classifying inventory based on degree of importance.

Alliances The most comprehensive of buyer-supplier relationships reflected by high interaction frequency, and significant trust and commitment between supply chain partners.

Anticipation Inventory Inventories carried in anticipation of events, such as seasonality or price increases.

Assemble-To-Order Strategy An inventory strategy where the product is partially completed and kept in a generic form, then finished when an order is received.

Assignable Variation Variation that is caused by factors that can be clearly identified and managed.

Batch Process A process used to produce small quantities of products in groups or batches based on customer orders or product specifications.

Benchmarking A method for comparing and quantifying operational performance to establish internal targets based on best in class results.

Bill of Materials (BOM) A list that shows all the raw materials, components, and subassemblies that go into a product. It also shows the quantities and relationships of items needed to make a final product.

Break-Even Analysis A tool used to compute the product quantity that needs to be sold for a company to cover their costs—called the “break-even point.”

Bullwhip Effect The phenomenon where fluctuation and distortion of information increases as it moves up the supply chain, from retailers, manufacturers, to suppliers.

Business Process A structured set of activities or steps with specified ...