Supply Planning

The process of identifying, prioritizing, and aggregating, as a whole with constituent parts, all sources of supply that are required and add value in the supply chain of a product or service at the appropriate level, horizon, and interval.

Supply Planning Systems

The process of identifying, prioritizing, and aggregating, as a whole with constituent parts, all sources of supply that are required and add value in the supply chain of a product or service at the appropriate level, horizon, and interval.

Supply Warehouse

A warehouse that stores raw materials. Goods from different suppliers are picked, sorted, staged, and sequenced at the warehouse to assemble plant orders.

Supportability

The inherent quality of a system – including design, technical support, date, and maintenance procedures – is to facilitate the detection, isolation, and timely repair/replacement of system anomalies. This includes factors such as diagnostics, prognostics, real-time maintenance data collection, 'design for support', and 'support the design' aspects, corrosion protection and mitigation, reduced logistics footprint, and other factors that contribute to an optimum environment for developing and sustaining a stable, operational system.

Support Costs

Costs of activities not directly associated with producing or delivering products or services include the costs of information systems, process engineering, and purchasing. Also, see Indirect Cost.

Surcharge

An add-on charge to the applicable charges: motor carriers have a fuel surcharge, and railroads can apply a surcharge to any joint rate that does not yield 110% of variable cost.

Surge Capacity

A measure of the ability to respond to a short-term increase in demand or a demand spike.

Surrogate [item] Driver

A substitute for the ideal driver, but closely correlated to the ideal driver, where [item] is Resource, Activity, or Cost Object. A surrogate driver is used to significantly reduce the cost of measurement while not significantly reducing accuracy. For example, the number of production runs is not descriptive of the material disbursing activity, but it may be used as an activity driver if material disbursements correlate well with the number of production runs.

Sustainability

Corporate sustainability refers to the efforts a company makes related to conducting business in a socially and environmentally responsible manner. It includes elements such as sustainable development, corporate social responsibility (CSR), stakeholder concerns, and corporate accountability.

Sustaining Activity

An activity that benefits an organizational unit as a whole, but not any specific cost object.

SVHC

A substance of very high concern.

SWAS

Store-Within-A-Store: A concept that is popular with some large retailers, where a department such as the tire shop is run by an independent third party who leases space from the retailer.

Swimlane

A row on a business process diagram type called a 'Swimlane Chart' provides a way of indicating which department or individual is responsible for a given process or activity. The responsible area or party is named on the left side of the diagram, with processes organized from left to right, and lines of linkage between each lane to show handoffs between areas.

Switch Engine

A railroad engine is used to move rail cars short distances within a terminal and plant.

Switching company

A railroad that moves rail cars short distances; switching companies connect two mainline railroads to facilitate the through movement of shipments.

SWOT

SWOT Analysis

SWOT Analysis

A strategic planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture.

Synchronization

The concept is that all supply chain functions are integrated and interact in real-time. When changes are made to one area, the effect is automatically reflected throughout the supply chain.

Synchronous Process

A series of activities that are linked to each other, one to the next, and in which each preceding activity must be completed before the next one is started.

Syntax

The grammar or rules that define the structure of the EDI standard.

System

A set of interacting elements, variables, parts, or objects that are functionally related to each other and form a coherent group.

Systems Concept

A decision-making strategy that emphasizes overall system efficiency rather than the efficiency of the individual parts of the system.

Tactical Planning

The process of systematic determination and scheduling of immediate or short-term activities required to achieve the objectives of the organization's strategic plan.

Tact Time

Takt Time

Taguchi Method

A method of analyzing quality problems developed by Genichi Taguchi of Nippon Telephone and Telegraph, it involves removing variability and the effects of causes instead of the cause. It focuses on robust process and product design and the identification of after-sales costs. However, this method has been subject to some criticism.

Takt Time

It can be defined as the maximum time per unit to produce a product in order to meet demand. It is derived from the German word 'Taktzeit' (cycle time). Takt time sets the pace for industrial manufacturing lines. For example, in automobile manufacturing, cars are assembled on a line and are moved on to the next station after a certain time—the takt time. Therefore, the time needed to complete work on each station has to be less than the takt time in order for the product to be completed within the allotted time.

Tally Sheet

A printed form on which companies record, by making an appropriate mark, the number of items they receive or ship. In many operations, tally sheets become a part of the permanent inventory records.

Tandem

A truck that has two drive axles or a trailer that has two axles.

Tank Cars

Rail cars that are designed to haul bulk liquids or gas commodities.

Tapering Rate

A rate that increases with distance, but not in direct proportion to the distance the commodity is shipped.

Tare Weight

Tare weight, sometimes called unladen weight, is the weight of an empty vehicle or container. By subtracting it from the gross weight (laden weight), the weight of the goods carried (the net weight) may be determined.

Target Costing

A target cost is calculated by subtracting a desired profit margin from an estimated or market-based price to arrive at a desired production, engineering, or marketing cost. This may not be the initial production cost, but one expected to be achieved during the mature production stage. Target costing is a method used in the analysis of product design that involves estimating a target cost and then designing the product/service to meet that cost.

Tariff

A tax assessed by a government on goods entering or leaving a country is called a customs duty. The term is also used in transportation to refer to the fees and rules applied by a carrier for its services.

Task Interleaving

A method of combining warehouse picking and putaway is through the use of Warehouse Management Systems (WMS). These systems employ logic to direct a lift truck operator, typically with an RF terminal, to put away a pallet while en route to the next pick. The main objective is to reduce 'deadheading', which refers to driving empty material handling equipment around the warehouse.

Tasks

The breakdown of the work in an activity into smaller elements.

Taxonomy

The practice and science of classification, taxonomy, may represent a particular classification arranged in a hierarchical structure.

TEU

Twenty-foot Equivalent Unit

Theoretical Cycle Time

The back-to-back process time required for a single unit to complete all stages of a process without waiting, stoppage, or time lost due to errors.

Theory of Constraints (TOC)

A production management theory dictates that volume is controlled by a series of constraints related to work center capacity, component availability, finance, etc. Total throughput cannot exceed the capacity of the smallest constraint, and any inventory buffers or excess capacity at non-related work centers are waste.

Third party logistics (3PL)

Logistics, such as warehousing, fulfillment, and/or transportation, are outsourced to third-party providers. These providers typically cover individual pieces rather than the entire supply chain.

Third-Party Logistics (3PL)

Outsourcing all or much of a company's logistics operations to a specialized company can be beneficial.

Third Party Logistics Provider

A firm that provides multiple logistics services for use by customers.

Third Party Service Provider 3PSP

Logistics, such as warehousing, fulfillment, and/or transportation, are outsourced to third-party providers. These providers typically cover individual pieces rather than the entire supply chain.

Third-Party Warehousing

The act of using a contractor to provide warehousing services, and the name of the industry involved in providing contract warehousing operations for hire.

Three-Layer Framework

A basic structure and operational activity of a company: the three layers include operational systems, control and administrative management, and master planning.

Throughput

A measure of volume is determined through a process, such as warehousing output volume (weight, number of units). Additionally, it is calculated by adding the total number of units received to the total number of units shipped, and then dividing the sum by two.

Time Based Order System

Fixed Reorder Cycle Inventory Model

Time Bucket

A defined period, typically 7 days, in which data is summarized for presentation in an MRP system. Data in the bucket is usually divided into groups showing inventory beginning balance, anticipated supply and demand, and available ending balance.