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Care must be taken in evaluating the nature of the demand: Is it a volume change, is it a change in product mix, or is it related to the timing of the order?
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Distorted information from one end of a supply chain to the other can lead to tremendous inefficiencies: excessive inventory investment, poor customer service, lost revenues, misguided capacity plans, ineffective transportation, and missed production schedules. Its sales at retail stores were fluctuating, but the variabilities were certainly not excessive.
Not long ago, logistics executives at Procter & Gamble (P&G) examined the order patterns for one of their best-selling products, Pampers.
The A group represents 10 to 20% by number of items, and 50 to 70% by projected dollar volume.
The next grouping, B, represents about 20% of the items and 20% of the dollare volume.
Acceptance Number: In quality management, 1) A number used in acceptance sampling as a cut off at which the lot will be accepted or rejected.
For example, if x or more units are bad within the sample, the lot will be rejected.
glossary of transportation, logistics, supply chain, and international trade terms help.
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z ABC Analysis: A classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume.
ABC Classification: Classification of a group of items in decreasing order of annual dollar volume or other criteria.
This array is then split into three classes called A, B, and C.
HP’s product division was a victim of order swings that were exaggerated by the resellers relative to their sales; it, in turn, created additional exaggerations of order swings to suppliers.Tags: Adult Dating, affair dating, sex dating