Standard costing is a predetermined or estimated cost of performing a service, operation or producing goods. Standard costing takes into account the volume and rate of items or services to calculate costs. For more information on standard costing click on the link below.
The Sales and Operations or S&OP processes mission is to balance supply and demand at an aggregate level, to align operational planning with financial planning, and to link strategic planning with tactical/operational planning. It does this through a series of meetings which are designed to guide a group of individuals towards consensus of "ONE" plan. The plan ultimately lays out an agreement between demand and production and makes all parties aware of what needs to be done to influence any constraints so that the plan can be met. In the book Sales & Operations Planning: The How-To-Handbook, authors, Wallace and Stahl list the 5 step process:
Later in a book entitled Demand Management Best Practices, authors, Crum and Palmatier add two additional steps to the process:
Reference: APICS Certified Supply Chain Professional CSCP: Learning System. Chicago, IL.: APICS the Association for Operations Management, 2014. Print.
Safety stock is used to help meet or mitigate the risks associated with stockouts. Organizations often hold excessive inventory as a result of safety stock which in the most general sense is held to protect against uncertainties in supply and demand. Safety stock is sometimes referred to as fluctuation inventory.
A spaghetti diagram is a tool used to track the amount of movement or distance traveled by a worker or materials. You can then use your spaghetti diagram to analyze what you tracked and improve the flow. The name spaghetti diagram comes from the reference of laying spaghetti noodles out to show the flow of materials or workers.
The scatter diagram graphs pairs of numerical data, with one variable on each axis, to look for a relationship between them. If the variables are correlated, the points will fall along a line or curve. The better the correlation, the tighter the points will hug the line.
Reference: ASQ - Scatter Diagram
The ABC's of