Key terms in Logistics & SCM

By Rayees Ahmed

.Just In Time (jit) JIT is to time the activities so that components. goods or services arrive in the production line just in time for transformation.

The main purpose is to develop the area.Special economic zone (SEZ) They are specially demarcated geographical regions that have more liberal economic laws as compared to the centralized laws of the country. .

cross-docking ● Cross-docking is a practice in transportation of unloading materials from an inbound vehicle and loading these materials directly into outbound trucks or trailers with little or no storage in between. .

. it is held to counter uncertainty.Safety Inventory Safety inventory is an inventory held in case the demand exceeds expectations.

Cycle Inventory Cycle inventory is the average inventory in a supply chain due to either production or purchases in lot sizes that are larger then demanded by the customer. .

Product Lifecycle A product goes through a sequence of stages from ● ● ● ● Introduction stage Growth stage Maturity stage Decline stage .

.Procurement It is the purchase of materials both directly and indirectly by consolidating orders with the objective of reducing cost.

Stock keeping units (SKUs) The variants of products in a category to serve varying units of demand are generally referred to as stock keeping units or SKUs. .

this is called lost sales. This results in the customer moving his demand to a competitor. .Lost sales Sometimes the customer cannot be serviced because the supply with the organization falls short.

who own and operate transportation equipment and warehousing buildings and provide service to the organizations. .Third-party logistics These firms are either asset or non asset based.

from supplier to manufacture and from manufacturer to mother warehouse. Outbound: Movement of goods from the manufacturer to dealers and further down the network. .Inbound & Outbound transportation Inbound: Movement of goods with the supply chain network.

Vendor Managed Inventory(VMI) VMI is an when the supplier assumes responsibility and actually manages inventory. Increasingly this has been applied in backwards linkages of supply chain as well as in manufacturing. This was initially adopted in the retail supply chain where a category owner took VMI responsibility. .

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