SUPPLY CHAIN VISION LOGISTICS TERMS and GLOSSARY Updated October 2003 After-Sale Service: Services provided to the customer after products have been delivered. This can include repairs, maintenance and/or telephone support. Synonym: Field Service Aggregate Forecast: An estimate of sales, often time phased, for a grouping of products or product families produced by a facility or firm. Stated in terms of units, dollars, or both, the aggregate forecast is used for sales and production planning (or for sales and operations planning)purposes. Aggregate Inventory: The inventory for any grouping of items or products involving multiple stockkeeping units. Also see: Base Inventory Level. Aggregate Inventory Management: Establishing the overall level(dollar value) of inventory desired and implementing controls to achieve this goal Aggregate Plan: A plan that includes budgeted levels of finished goods, inventory, production backlogs, and changes in the workforce to support the production strategy. Aggregated information(e.g, product line, family) rather than product information is used, hence the name aggregate plan ggregate Planning: A process to develop tactical plans to support the organizations business plan. Aggregate planning usually includes the development, analysis, and maintenance of plans for total sales, total production, targeted inventory, and targeted customer backlog for families of products. The production plan is the result of the aggregate planning process. Two approaches to aggregate planning exist-production planning and sales and operations planning Agility: The ability to successfully manufacture and market a broad range of low-cost, high quality products and services with short lead times and varying volumes that provides enhanced value to customers through customization. Agility merges the four distinctive competencies of cost, quality, dependability, and flexibility AGVS: See: Automated Guided vehicle system Algorithm: A clearly specified mathematical process fr computation; a set of rules, which, if followed give a prescribed result Allocated item: In an MRP system, an item for which a picking order has been released to the stockroom but not yet sent from the stockroom Allocation: A distribution of costs using calculations that may be unrelated to physical or direct or repeatable cause-and-effect relationships. Because of the arbitrary nature of allocations, costs based on cost causal assignment are viewed as more relevant for management decision- making.(Contrast with Tracing and Assignment. Definitions compiled by Kate vitasek aIn Bellevue. Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted.SUPPLY CHAIN VISIONS LOGISTICS TERMS and GLOSSARY Updated October 2003 Definitions compiled by: Kate Vitasek Supply Chain Visions Bellevue, Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted. After-Sale Service: Services provided to the customer after products have been delivered. This can include repairs, maintenance and/or telephone support. Synonym: Field Service. Aggregate Forecast: An estimate of sales, often time phased, for a grouping of products or product families produced by a facility or firm. Stated in terms of units, dollars, or both, the aggregate forecast is used for sales and production planning (or for sales and operations planning) purposes. Aggregate Inventory: The inventory for any grouping of items or products involving multiple stockkeeping units. Also see: Base Inventory Level. Aggregate Inventory Management: Establishing the overall level (dollar value) of inventory desired and implementing controls to achieve this goal. Aggregate Plan: A plan that includes budgeted levels of finished goods, inventory, production backlogs, and changes in the workforce to support the production strategy. Aggregated information (e.g., product line, family) rather than product information is used, hence the name aggregate plan. Aggregate Planning: A process to develop tactical plans to support the organization’s business plan. Aggregate planning usually includes the development, analysis, and maintenance of plans for total sales, total production, targeted inventory, and targeted customer backlog for families of products. The production plan is the result of the aggregate planning process. Two approaches to aggregate planning exist—production planning and sales and operations planning. Agility: The ability to successfully manufacture and market a broad range of low-cost, high￾quality products and services with short lead times and varying volumes that provides enhanced value to customers through customization. Agility merges the four distinctive competencies of cost, quality, dependability, and flexibility. AGVS: See: Automated Guided Vehicle System. Algorithm: A clearly specified mathematical process for computation; a set of rules, which, if followed, give a prescribed result. Allocated item: In an MRP system, an item for which a picking order has been released to the stockroom but not yet sent from the stockroom. Allocation: A distribution of costs using calculations that may be unrelated to physical observations or direct or repeatable cause-and-effect relationships. Because of the arbitrary nature of allocations, costs based on cost causal assignment are viewed as more relevant for management decision-making. (Contrast with Tracing and Assignment.)