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Activity-Based Cost Accounting (ABC)

SCM Supply Chain Management Definitions & Terms

Jan 19, 2011

Inventory Management Systems

Software applications that permit monitoring events across a supply chain. These systems track and trace inventory globally on a line-item level and notify the user of significant deviations from plans.…

Jan 19, 2011

Supply Chain Inventory Visibility

Software applications that permit monitoring events across a supply chain. These systems track and trace inventory globally on a line-item level and notify the user of significant deviations from plans.…

Jan 19, 2011

Quality

Conformance to requirements or fitness for use. Quality can be defined through five principal approaches: (1) Transcendent quality is an ideal, a condition of excellence. (2) Product-based quality is based…

Jan 19, 2011

Forecasting Methods

Qualitative forecasting techniques An approach to forecasting that is based on intuitive or judgmental evaluation. It is used generally when data are scarce, not available, or no longer relevant. Common…

Jan 19, 2011

Commodity Strategy Development

The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems. Source: http://www.apics.org/

Jan 14, 2011

Capacity – Information Flows

Capacity is the capability of a worker, machine, work center, plant, or organization to produce output per time period. Information aids us in addressing capacity availability, unused capacity and performance…

Jan 13, 2011

Business-to-Business Commerce (B2B)

Business being conducted over the Internet between businesses. The implication is that this connectivity will cause businesses to transform themselves via supply chain management to become virtual organizations, reducing costs,…

Jan 13, 2011

Agreements

An agreement should clearly state what you are buying and its cost. Delivery terms and responsibility, Installation related issues, if applicable, an acceptance provision detailing how and when the buyer…

Jan 13, 2011

Activity-Based Management (ABM)

The use of activity-based costing information about cost pools and drivers, activity analysis, and business processes to identify business strategies; improve product design, manufacturing, and distribution; and remove waste from…

Jan 13, 2011

Activity-Based Cost Accounting (ABC)

A cost accounting system that accumulates costs based on activities performed and then uses cost drivers to allocate these costs to products or other bases, such as customers, markets, or…