Incident
An unscheduled event requiring immediate resolution
Chance Event
A distinct source, cause, or issue of uncertainty
Known unknown
A source of uncertainty known to a decision maker, usually evident in past experience or data
Probabilistic
Variable or not well known in advance; subject to randomness. This represents some uncertainty in planning
Future States of Nature
A set of distinct conditions associated with a chance event only one of which will actually occur
Expected Value
The mathematical expectation of a random variable, calculated as the weighted average of all possible values that may occur
Unknown Unknown
Uncertainty omitted from planning because the decision maker is unaware of its presence.
Black Swan
An incident of extreme consequence, unexpected or considered highly improbably
Disruptive Innovation
A technological change that profoundly alters an existing market unexpectedly
Framing
Adopting too narrow a view in the analysis of a problem
Outcome Bias
A tendency to assume a process is acceptable if its output is acceptable
Normalization
A tendency to accept anomalies as normal events, particularly over time
Confirmation bias
A tendency to favor information that supports a hypothesis and to suppress or neglect information that refutes it
Groupthink
A tendency to neglect full critical evaluation of a decision in favor of minimizing conflict within a group of decision makers
Risk
The possibility of loss or the source of such a possibility
Proaction
Avoidance of preventable risk, the first and most basic stage of risk management
Crisis
The critical time prior to an impeding change of great significance
Propagate
To increase or spread elsewhere
Resilience
The ability of a system to adjust to or recover from a shock or sudden change
Business continuity plan
Guidelines and arrangements for response to disruption of critical business functions to restore and maintain operation
Contingency Plan
An alternate plan developed in anticipation of a possible obstacle to the original plan
Reliability
The probability that an element or a system will perform as specified
Redundancy
Duplication of an element within a system
Robustness
Providing stable reliability despite changing conditions
Triage
A priority rule creating sequences intended to yield the most value from distinctly limited resources
Yield Management
Policies and practices to maximize the benefit of a perishable resource such as service capacity
Overbooking
Commitment or sale of resource in excess of its actual availability
Newsvendor Problem
Choosing a quantity to meet a single period of uncertain demand, weighing the costs of ordering too much and too little
Incident Command System
A predetermined structure that organizes available parties into one temporary organization to resolve an incident
Centralized organizational policy
Assigning decision making and authority to one individual or set of individuals within a larger organization
real-time
The present point in time, now
Workaround
A temporary solution developed in response to an unexpected loss or obstacle
Bricolage
A creation from what happened to be available during its formation
Sense-making
Assigning meaning to experience
Situational Awareness
An individual or organization's comprehension of the surrounding environment and its potential near-future states
Iterative Planning
Deliberately adjusting plans at short intervals, to reflect emerging information
Optimization
identification of the best alternative
NGO
A nongovernmental organization, understood to be a nonprofit organization as well
Safety Stock
Inventory held to protect against uncertain supply or demand
Staging
Retrieving or positioning inventory or other resources before they are required
Last-mile problem
The challenge of completing delivery of a good or a service, especially if the destination is remote or disrupted by disaster
Supply Chain
A sequence of organizations-their facilities, functions, and activities-that are involved in producing and delivering a product or service
Supply Chain Strategy Alignment
Aligning supply and distribution strategies with organizational strategy and deciding on the degree to which outsourcing will be employed.
Network configuration
Determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers.
Information technology
Interfrating systems and processes throughout the supply chain to share information, including forecasts, inventory status, tracking of shipments, and events.
Products and services
Making decisions on new product and services selection and design.
Capacity planning
Assessing long-term capacity needs, including when and how much will be needed and the degreee of flexibility to incorporate.
Strategic partnerships
Partnership choices, level of partnering, and degree on formality.
Distribution Strategy
Deciding whether to use centralized or decentralized distribution, and deciding whether to use the organization's own facilities and equipment for distribution or to use third-party logistics providers.
Uncertainty and risk reduction
Identifying potential sources of risk and deciding the amount of the risk that is acceptable.
Factors typically covered by a supplier audit are?
Management style, quality assurance, materials management, the design process used, process improvement policies, and procudures for corrective action and follow up.
Other factors that can contribute to the bullwhip affect are?
Forecast inaccuracies, overreaction to stockouts , order batching to save on ordering and transportation costs, sales incentives and promotions, and service and product mix changes, which can create uneven demand patterns , and liberal return policies.
Avoidance
Finding ways to minimize the number of items that are returned.
Bullwhip effect
Inventory oscillations becomes progressively larger looking backward through the supply chain.
Supply Chain Management
The strategic coordination of the supply shain for th epurpose of integrating supply and demand management.
Logistics
The movement of goods, services, cash, and information in a supply chain.
Resiliency
the ability of a vusiness to recover from an event that negatively impacts the supply chain.
Supply chain visibility
A major trading partner can connect to its supply chain to access data in real time.
Event-response capability
The ability to detect and respond to unplanned events.
Purchasing cycle
Series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition.
Centralized purchasing
Purchasing is handled by one special department.
Decentralized Purchasing
Individual departments or separate locations handle thier own purchasing requirements.
Vendor Analysis
Evaluating the sources of supply in terms of price, quality, reputation, and service
Strategic partnering
Two or more business orgaizations that have complementary products or services join so that each may realize a strategic benefit.
Inventory velocity
The speed at which goods move through a supply chain.
Vendor-managed inventory
Vendors monitor goods and replenish retail inventories when supplies are low.
Order fulfillment
The processes involved in responding to customer orders.
Logistics
The movement of materials, services, cash, and information in the supply chain.
Traffic management
Overseeing the shipment of incoming and outgoing goods.
Radio frequency identification (RFID)
A technology that uses radio waves to identify objects, such as goods in supply chains.
Third-party logistics
The outsourcing of logistics management.
Strategic sourcing
Analyzing the procurement process to lower costs by reducing waste and non-value-added activities, increase profits, reduce risks, and improve supplier performance.
Information velocity
The speed at which informations is communicated in a supply chain.
Fill rate
The percentage of demand filled from stock on hand.
Reverse logistics
The process of transporting returned items.
Gatekeeping
Screening returned goods to prevent incorrect acceptance of goods.
Closed-loop supply chain
A manufacturer controls both the forward and reverse shipment of product.
Cross-docking
A technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded into outbound trucks, thereby avoiding warehouse storage.
Delayed differentiation
production of standard components and subassemblies, which are held until late in the process to add differentiating features.
Disintermediation
Reducing one or more steps in a supply chain by cutting out one or more intermediaries.
What are some recent trends in supply chain management?
Recent trends in supply chain management include measuring ROI, "greening" the supply chin, reevaluating outsourcing, integrating IT, managing risks, and adopting lean principles.