Supply Chain Management Introduction Supply chain management is an integral component of operation management and has a direct effect on how successfully organizations function. The purpose of supply chain management is to remove communication barriers and eliminate redundancies by coordinating, monitoring, and controlling processes within an organization. Identifying the components of the supply chain, facilitating better decision-making, creating improved communication, and identifying weak links in the chain causing bottlenecks in an organization are crucial to supply chain integration. There are three principle elements of supply chain integration:
Demand in any period that is outside the limits established by management policy. This demand may come from a new customer or from existing customers whose own demand is increasing or decreasing.
Care must be taken in evaluating the nature of the demand: Is it a volume change, is it a change in product mix, or is it related to the timing of the order? In cost management, an approach to inventory valuation in which variable costs and a portion of fixed costs are assigned to each unit of production.
The fixed costs are usually allocated to units of output on the basis of direct labor hours, machine hours, or material costs. A Canada Customs system to speed the release of shipments by allowing electronic transmission of data to and from Canada Customs 24 hours a day, 7 days a week. In quality management, when a continuing series of lots is considered, AQL represents a quality level that, for the purposes of sampling inspection, is the limit of a satisfactory process average.
In quality management, a specific plan that indicates the sampling sizes and the associated acceptance or non-acceptance criteria to be used. In quality management, 1 A number used in acceptance sampling as a cut off at which the lot will be accepted or rejected. For example, if x or more units are bad within the sample, the lot will be rejected.
The entire lot may be accepted or rejected based on the sample even though the specific units in the lot are better or worse than the sample.
There are two types: In attributes sampling, the presence or absence of a characteristic is noted in each of the units inspected. In variables sampling, the numerical magnitude of a characteristic is measured and recorded for each inspected unit; this type of sampling involves reference to a continuous scale of some kind.
A carrier's ability to provide service between an origin and a destination. A carrier's charge for accessorial services such as loading, unloading, pickup, and delivery, or any other charge deemed appropriate. Being answerable for, but not necessarily personally charged with, doing specific work.
Accountability cannot be delegated, but it can be shared. For example, managers and executives are accountable for business performance even though they may not actually perform the work.
The value of goods and services acquired for which payment has not yet been made.
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The value of goods shipped or services rendered to a customer on whom payment has not been received. Usually includes an allowance for bad debts. Certification by a recognized body of the facilities, capability, objectivity, competence, and integrity of an agency, service, operational group, or individual to provide the specific service or operation needed.
A committee of ANSI chartered in to develop uniform standards for the electronic interchange of business documents. A place, usually a physical location, used to accumulate all components that go into an assembly before the assembly is sent out to the assembly floor.
In quality management, the degree of freedom from error or the degree of conformity to a standard. Accuracy is different from precision.
For example, four-significant-digit numbers are less precise than six-significant-digit numbers; however, a properly computed four-significant-digit number might be more accurate than an improperly computed six-significant-digit number.
See Automated Call Distribution. A communication by a supplier to advise a purchaser that a purchase order has been received. It usually implies acceptance of the order by the supplier. In cost accounting, the cost required to obtain one or more units of an item.
It is order quantity times unit cost.
Goods in active pick locations and ready for order filling. Work performed by people, equipment, technologies, or facilities. Activities are usually described by the action-verb-adjective-noun grammar convention. Activities may occur in a linked sequence and activity-to-activity assignments may exist.Inbound Logistics' glossary of transportation, logistics, supply chain, and international trade terms can help you navigate through confusion and get to the meaning behind industry jargon.
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The paper proposes a definition of four types of. ERS effectively eliminated the need for paper invoices and checks between the company and its suppliers (3).
In the years since then, several variations of the original GM procedure have developed. In the years since then, several variations of the original GM procedure have developed. ISSN: ISO Certified International Journal of Engineering and Innovative Technology (IJEIT) Volume 4, Issue 10, April Supply chain management traditionally has focused on sourcing components, materials and other supplies as well as distribution.
In a collaborative relationship, supply chain partners contribute to high levels of customer satisfaction and help to make a company the preferred choice for customers.
Marketing provides information on products. As customer service requirements become more complex, supply chain optimization studies are the foundation for some of the most successful companies’ logistics and fulfillment operations.
We look at the best practices behind supply chain optimization.