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SCM Supply Chain Management Definitions & Terms

Jan 19, 2011

Statement of Work (S.O.W)

The most critical ingredient of a successful procurement of services is the development and documentation of the requirements – the statement of work. The S.O.W. identifies what the contractor is…

Jan 19, 2011

Outbound Logistics

The process related to the storage and movement of the final product and related information flows from the end of the production line to the end user. Sources: Christopher, M.…

Jan 19, 2011

Inventory Positioning

Inventory positioning refers to the selective location of various items in the product line in plant, regional, or field warehouses. Inventory positioning has a bearing on facility location decision, and…

Jan 19, 2011

Currency Conversions

Issues with currency conversion add complexity to the global sourcing process. The absence of fixed exchange rates can be a problem. Fluctuations in exchange rates can have a significant impact…

Jan 19, 2011

Capacity Planning

The process of determining the amount of capacity required to produce in the future. This process may be performed at an aggregate or product-line level (resource requirements planning), at the…

Jan 19, 2011

Specifications

Specifications are the most detailed method of describing requirements. Various types of design specifications are the detailed descriptions of the materials, parts, and components to be used in making a…

Jan 19, 2011

Order management

Order management involves the seamless integration of orders from multiple channels with inventory databases, data collection, order processing including credit card verification, fulfillment systems and returns across the entire fulfillment…

Jan 19, 2011

Inventory

1) Those stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies), and customer service (finished goods and spare parts). Demand…

Jan 19, 2011

Customer/Order Fulfillment Process

A series of customers’ interactions with an organization through the order filling process, including product/service design, production and delivery, and order status reporting. Source: http://www.apics.org/

Jan 19, 2011

Capacity Management

The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules; i.e., the production plan, master production schedule, material requirements plan,…