Inventory turns Annual costs of goods sold/average inventory
Total quality Mgmt A management approach to long term success through customer satisfaction
Most significant impact on a Business Operating Environment Governernment, Economy, Competition, Customer expectations, Quality
Customer Relationship Mgmt the collection and analysis of information designed for sales and marketing decision support to understand and support existing and potential customer needs
Demand Management The function of recognizing all demands for goods and services to support the marketplace
Operations Splitting intended to reduce mfg lead time
what balances the needs of Sales and the economics of manufacturing product simplification, product standardization, and product specialization
Business Plan a statement of long term strategy and revenue, cost and profit objectives usually accompanied by budgets, projected balance sheet and a cash flow
Hedge when buyers purchase additional inventory, expecting prices to rise
transaction the channel of distribution concerned with the transfer of ownership, specifically to negotiate sell and contact
distribution the channel of distibution concerned with the transfer or delivery of goods or services
objective of distribution management provide the required level of customer service at the least total cost
In order to maximize profit you must have best customer service, lowest inventory investment, lowest distribution cost, but not necessary to have: MOST ACCURATE PRODUCTION FORECAST
strategic plan is a statement of goals and objectives for a long range period
Aggregate inventory mgmt is concerned with the costs and benefits of carrying the different classes of inventory
backflushing in order to reduce the number of transactions in a JIT environment, companies use this system. see Chap 14
growth rate increase in revenue
Force field diagram measures the forces working against each other to cause a problem
Safety Stock Chap 11; 99.9% product coverage = 5* MAD
forecasts forecasts are a prelude to business planning
Tracking signal in forecast error, a tracking signal determines if the forecast error is bias or a random error. chapter 8. used to measure the quality of a forecast
Demand Mgmt Chap 8. includes forecasted, service parts, branch whse rqmts, and inter plant orders