Backfilling (in transport)

Transcription

1 27 Glossary of logistics terms 3PL 4PL Agile production Amplification APICS APS Back order Backfilling (in transport) Binning ticket Blanket order 3rd party logistics ie sub-contracting one or more activities to an service provider 4th party logistics ie sub-contracting the management of the supply chain to somebody who chooses the best sub-contractors and manages the flows. This is not a universal definition. Sometimes 4PL just refers to the idea of one company providing software inter-connectivity along the chain The ability to respond rapidly to changing customer requirements, eg variable demand, varying geographical requirements Describes the way in which order quantities are inflated as information passes back up the supply chain (part of the bullwhip effect). American Production and Inventory Control Society, a large US professional body offering training, qualifications and support to those working in production-related occupations. Advanced Planning and Scheduling System exploits recent availability of increased computer power to apply advanced mathematical methods for planning and scheduling. An order that was not fulfilled when the customer wanted it but which will be held on record and fulfilled as soon as more stock is available (i.e the order is not lost). Putting goods in the vehicle for the return journey (instead of running empty on return) Authorization to put newly arrived replenishment items into stock An order placed for a period of time (eg 1 year) or for a large quantity (eg annual consumption) against which periodic (eg weekly, fortnightly, monthly) call-offs will be made by phone or , for delivery within an agreed lead time.

2 28 Glossary of Logistics s BPR Buffer stock Bullwhip effect Call-off order CILT CIPS CMI Consignment stock CSCMP Dependent demand D time Dynamic allocation EPOS data ERP Business Process Re-engineering. Though BPR is considered to be out of date by some people, process improvement and getting the right processes in place, are still key to dramatic logistics improvement and many companies are still undertaking BPR projects. See safety stock. The way in which inventory and orders suffer from time lag and amplification back through the supply chain See blanket order Chartered Institute of Logistics and Transport, a UK-based to those working in logistics and transport-related occupations. See Chartered Institute of Purchasing and Supply, a UK-based to those working in procurement-related occupations. See Co-managed inventory. Stock replenishments are planned by supplier and customer together. See also VMI and SMI. Stock supplied by a vendor which sits in your warehouse, but you only pay for it when you use it. Council of Supply Chain Management Professionals (formerly Council for Logistics Management), a US based for people in supply chain-related occupations. Demand for components depends on demand for end product. See MRP Demand and delivery time that the customer experiences between placing the order and getting the goods. See also P time. Mainly used in pallet warehouses. Each time a pallet arrives, a location is assigned to the pallet. In general, this location does not depend on the item type or location of pallets of similar items. Electronic point of sale data (eg from bar codes), where data on items sold are collected at the point of sale and transmitted back to the DC or suppliers. Enterprise Resource Planning. Integrated production and business management systems used in a firm. Claims to take MRP2 further by linking planning between businesses. Example: SAP

3 Glossary of Logistics s 29 Euro-pallet FCFS FIFO Fill rate Forrester effect GPSS INCO terms Independent demand Lean production LIFO Marshalling area MRO MRP (or MRP1) MRP2 OMED On time and in full OPT Pallets made to Europe-wide agreed specifications; a common size is 1200 mm 800 mm First come, first served, a sequencing rule First in, first out, a storage rule The number of items (lines on the order) delivered as ordered compared to the number of items ordered (usually expressed as a percentage) Named after Jay W Forrester, author of Industrial Dynamics, MIT Press, See Bullwhip effect. General purpose simulation system, language used for simulation modelling s developed by the International Chamber of Commerce, Paris, to describe responsibilities (of buyer and seller) in an international trading transaction. See There is no relationship between the demand for different items eg supermarket A group of techniques to allow short lead times, low stocks, and fast flow Last in, first out, a storage rule Where packages or items are grouped together for some purpose, usually packages are marshalled into groups by delivery route Strictly maintenance, repair and overhaul but sometimes it is also taken to mean maintenance and repair operations. Materials Requirements Planning, used to plan replenishment orders (purchase and works) for dependent demand items Manufacturing Resource Planning, development of MRP1 to include other resources such as machine capacity One minute exchange of die is the ability to change tools, dies or the set up of a machine in less than 100 seconds. The order must be delivered with exactly the items and quantities as ordered and at the time requested. Optimized Production Technology, a finite capacity production scheduling system, focussing on bottleneck identification and scheduling, developed by Eli Goldratt, an Israeli physicist.

4 30 Glossary of Logistics s Order cycle time Order fill rate Perfect order PERT Picking ppm Protection level P time Random allocation or random position Safety stock Security stock SKU Slotting strategy Static allocation or fixed position Supply chain mapping In general, this is the time between placing an order and getting the goods. See also P time and D time See fill rate Not just on time and in full, a perfect order is delivered to the right place, correctly packaged, undamaged and invoiced correctly. In short, there is nothing to complain about! Project Evaluation Review Technique, network analysis method for project management The act of selecting items from stock for an order Parts per million often used to express the number of failures per million items tested % of overall demand which will be met on average by a certain average stock level. Procurement and Production time is the real time that it takes to produce a customer order. In general, this is much greater than the D time that the customer experiences. The higher the P:D ratio, the more stock will there be in the system and the more will be the reliance on the forecast. Since all the positions in a pallet warehouse are identical, it does not matter where any pallet is stored. The warehouse management system (WMS) keeps track of the location of each pallet so that they can be withdrawn in FIFO sequence. (See also slotting strategy and static allocation) Stock which is expected to be used when demand is greater than average or expected, or if replenishment is late. See safety stock Stock-Keeping Unit (basically a stock code). Each different item to be stored is a different SKU. Note that 2 different sized packages of the same substance or item are considered to be different SKUs. Deciding where each item in the stores or warehouse should be located Each item in the stores is given a particular location. That item type will always be found in that location. Drawing out the supply chain as a flow chart of stages showing inventory and lead times

5 Glossary of Logistics s 31 SMED Stock cover TEU Time lag Single Minute Exchange of Die refers to the ability to change tools, dies or the set up of a machine in a single digit number of minutes (ie less than 10) Period of time that the current stock level would be able to meet sales demand on average Twenty foot Equivalent Units refers to the length of standard container sizes, usually 20 feet (about 6 metres). Used for example when talking about the capacity of container ships. The time between initiating an action and that action occurring (eg in the Bullwhip effect)