Commonly Used Terms
Aggregate Inventory Management
Aggregate inventory management refers to a basic inventory management method that groups items categories, namely, raw materials, work-in-process, and finished goods. It is also referred to as Aggregate inventory control; it manages multiple individual items under each category.
Aggregation(Categorization) could be done on the basis of:
- Distribution pattern
- Stage of Production flow
- Production Process
- Product or SKU type
- Demand Patterns
Objectives of Aggregate Inventory Management:
- Support business strategy and operations
- Best customer service
- Lot size/safety stock can help meet demand
- Ensure that inventory practices support financial objectives
- Low-cost plant operation- operating efficiency, lower production runs, less setup cost
- Balance customer service, operations efficiency, and inventory investment cost objectives
- Minimum inventory investment - a balance between low costs, customer service, and operating efficiency
Aggregate Inventory Management can be used for the following processes:
- Calculating inventory costs by category
- Matching supply with demand
- Determining the types of inventory to be held
- Setting inventory objective and policies
Aggregate control is more concerned with the cost and benefits of carrying each class of inventory. For example, the raw materials for a Table/Sofa manufacturer consist of Cloth, wood, screws, varnish, paint, and uncut leather. Work-in-process for this same company might consist of assembled tables without paint or varnish and sofa frames that still require foam and upholstery. The company controls these items with a different set of parameters. Completed items ready to sell make up the company’s finished goods products. The company controls finished goods based on the category’s supply and demand patterns. The control measures on the raw materials are based on their inventory costs.
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Average Payment Period (for materials)
Average Inventory
Average Cost per Unit
Accounts Payable
Available to Sell (ATS)
Available to Promise (ATP)
Available Inventory
Automatic Rescheduling
Automatic Relief
Automated Storage-Retrieval System (AS-RS)
Automated Manifest System (AMS)
Automated Guiding Vehicle System (AGVS)
Automated Commercial Environment (ACE)
Automated Clearing House (ACH)
Automated Call Distribution
Automated Broker Interface (ABI)
Auditing
Audit Trail
Audit Ability
Audit
Attributes
Attachment
Assumed Receipt
Association of American Railroads
Assignment
Assemble-to-order
Arrival Notice
Approved Vendor List (AVL)
Appraisal Costs
Any Quantity Rate (AQ)
Anticipation Inventories
Anticipated Delay Report
Anti-Dumping Duty
ANSI Standard
Amtrak
American Waterways Operators
American Trucking Association (ATA)
American Standard Code for Information Interchange
American Society of Transportation & Logistics
American Society for Training and Development (ASTD)
American Society for Testing and Materials (ASTM)
American Society for Quality (ASQ)
American National Standards Institute (ANSI)
American Customer Satisfaction Index (ACSI)
Alternate Routing
Alpha Release
Allocation
Allocated Item
All Risks
All Cargo Carrier
Alaskan Carrier
Airport and Airway Trust Fund
Airline Terminal Fee (ATF)
Air Waybill
Air Transport Association of America
Air Taxi
Air Cargo Containers
Air Cargo
Agility
Agile Manufacturing
Aggregate Tender Rate
Aggregate Planning
Aggregate Plan
Aggregate Inventory Management
Aggregate Inventory
Aggregate Forecast
Agglomeration
Agent
Agency Tariff
After Sale Service
Advanced Shipping Notice
Advanced Planning and Scheduling (APS)
Advance Material Request
Adaptive Smoothing
Adaptive Control
Actual to Theoretical Cycle Time
Actual Demand
Actual Cost System
Actual Cost
Activity Ratio
Activity Network Diagram
Activity Level
Activity Driver
Activity Dictionary
Activity Based Planning (ABP)
Activity Based Management (ABM)
Activity Based Costing System
Activity Based Costing Model
Activity Based Costing (ABC)
Activity Based Budgeting (ABB)
Activity Analysis
Activity
Active Inventory
Avoiding Short Landed Shipments: Essential Tips
B
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