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1、SUPPLYCHAINMANAGEMENTTERMSandGLOSSARYUpdated:August2013AA3Method:TheA3systemisameansofdescribingabusinessprocessinacompactform.ItwasoriginallycreatedbytheToyotaMotorCorporationandwasnamedforthepapersizeonwhichitwasprinted:A3(11”x17”).ToyotausedtheA3methodologytohelpdevelopitsfamedToyotaProduc
2、tionSystem(TPS).Abandonment:1)Thedecisionofacarriertogiveuportodiscontinueserviceoveraroute.RailroadsmustseekICCpermissiontoabandonroutes.2)Asinthephrase"callabandonment".Thisreferstopeoplewho,beingplacedonholdinanincomingcall,electtohangup("abandon")thecall.Callcentersmonitorcloselythe"aband
3、onmentrate"asameasureoftheirinefficiency.ABB:SeeActivityBasedBudgetingABC:SeeActivityBasedCostingABCClassification:Amethodofclassifyinginventoryitemsrelativetotheirimpactontotalcontrol.ABCtypicallyusesmovementandcostdatatocalculatethevalueofstockusageoverthepriorperiod,andusestheresultasanele
4、mentinrankingitemsunderan80/20Paretoruleforcyclecountingpurposestofocuseffortsonthoseselecteditemsandpossiblereducethecostassociatedwithfrequentcountingofslowmovingitems.ThegroupisdividedintoclassescalledA,B,andC(andsometimesD)withTheAgrouprepresentsthehighestvaluewith10to20%bynumberofitems.T
5、heB,CandD(ifused)groupsareeachlowervaluesbuttypicallyhigherpopulations.Itemswithhigherusagevalueare(the20%)arecountedmorefrequently.SpecificbarstobeusedinsettingABClevelswillvarybyorganizationastheywillimpactthefinancialcontrolappliedtoinventoryandthelevelofeffortspentcounting.Alsosee:CycleCo
6、untingABCCosting:SeeActivityBasedCostingABCFrequencyofAccess:Locationmethodwherethedeterminationofaproduct’slocationwithinthewarehouse,ordistributioncenter,isbasedon1)product’sABCClassificationand2)thenumberoftimesorrateofwhichtheproductisaccessed.ABCInventoryControl:Amethodofinventorycontrol
7、whichdividesitemsintocategoriesbasedonvalueofusage,somethinglikeaParetodivisionwheretheitemswhichconstitutethehighestdollarvaluearetrackedmorecloselythanthosewithlowervaluemovement.Inthismethodanitemwithhighvolumesofmovement,butlowcost,suchas
