Compendium admissions 2023-25
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- Bullwhip Effect
- Cross-docking
- Benchmarking
- ABC Analysis
| Bottleneck: A bottleneck (or constraint) in a supply chain means the resource that requires the longest time in operations of the supply chain for certain demand. Back Ordering: A practice of placing a purchase order to a supplier fora product that’s temporarily out of stock in your warehouse and has already been ordered by your customers. 96 15. Bullwhip Effect: The Bullwhip Effect occurs as orders are relayed from retailers to distributors, to wholesalers, to manufacturers, with increasing rate at each step in the sequence that is placed order is magnified as compared to actual demand as one move from the customer to the manufacturer in the supply chain. Cross-docking: A method by which a business owner can ship goods they have received from vendors to their customers with little to no storage time. This method typically uses a single dock or a platform that has the best access to both cargo loading and unloading areas so that the goods unloaded from one set of the truck can be reviewed, sorted, split into groups based on different destinations, and then loaded into another set of trucks for delivery. This method is typically used for perishable goods with a short shelf life and goods affected by temperature. Benchmarking: The process of comparing performance against the practices of other leading companies to improve performance. Companies also benchmark internally by tracking and comparing current performance with past performance. Benchmarking seeks to improve any business process by exploiting best practices rather than merely measuring the best performance. Best practices are the cause of best performance. Studying best practices provides the most significant opportunity for gaining a strategic, operational, and financial advantage. ABC Analysis: Pareto analysis applied to a group of products to apply selective inventory management controls. The inventory value for each item is obtained by multiplying the annual demand by unit cost, and the entire inventory is then ranked in descending order of cost. However, the classification parameter can be varied for example, it is possible to use the velocity of turnover rather than the annual demand value. Download 4.08 Mb. Share with your friends:
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