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Perpetual Inventory
An inventory record keeping system where each transaction
in and out is recorded and a new balance is computed.
Package to Order
A production environment in which a good or service can be
packaged after receipt of a customer order. The item is common
across many different customers; packaging determines the end
product.
Packing List
List showing merchandise packed and all particulars. Normally
prepared by shipper but not required by carriers. Copy is sent
to consignee to help verify shipment received. The physical
equivalent of the electronic Advanced Ship Notice (ASN).
Pallet
The platform which cartons are stacked on and then used for
shipment or movement as a group. Pallets may be made of
wood or composite materials.
Parcel Shipment
Parcels include small packages like those typically handled by
providers such as UPS and FedEx.
Pareto
A means of sorting data for example. For example, number of
quality faults by frequency of occurrence. An analysis that
compares cumulative percentages of the rank ordering of costs,
cost drivers, profits or other attributes to determine whether
a
minority of elements have a disproportionate impact.
Another example, identifying that 20 percent of a set of
independent variables is responsible for 80 percent of the
effect. Also see: 80/20 Rule
Part standardization
A program for planned elimination of superficial, accidental,
and deliberate differences between similar parts in the
interest of reducing part and supplier proliferation.
A typical goal of part standardization is to reduce costs by
reducing the number of parts that the company needs to manage.
Period Order Quantity
A lot-sizing technique under which the lot size is equal to
the net requirements for a given number of periods, e.g.,
weeks into the future.
The number of periods to order is variable, each order size
equalizing the holding costs and the ordering costs for the
interval. Also see: Discrete Order Quantity, Dynamic Lot
Sizing
Periodic Review System
See Fixed Reorder Cycle Inventory Model
Piggyback
Terminology used to describe a truck trailer being transported
on a railroad flatcar.
Planning Horizon
The amount of time a plan extends into the future. For a
master schedule, this is normally set to cover a minimum of
cumulative lead time plus time for lot sizing low-level
components and for capacity changes of primary work centers or
of key suppliers.
For longer term plans the planning horizon must be long enough
to permit any needed additions to capacity. Also see:
Cumulative Lead Time, Planning Time Fence
Postponement
The delay of final activities (i.e., assembly, production,
packaging, etc.) until the latest possible time. A strategy
used to eliminate excess inventory in the form of finished
goods which may be packaged in a variety of configurations.
Procurement
The business functions of procurement planning, purchasing,
inventory control, traffic, receiving, incoming inspection,
and salvage operations. Synonym: Purchasing.
Public warehouse
A business that provides short or long-term storage to a
variety of businesses usually on a month-to-month basis. A
public warehouse will generally use their own equipment and
staff however agreements may be made where the client either
buys or subsidizes equipment.
Public warehouse fees are usually a combination of storage
fees (per pallet or actual square footage) and transaction
fees (inbound and outbound). Public warehouses are most often
used to supplement space requirements of a private warehouse.
See also Contract warehouse and 3PL
Pull or Pull-through distribution
Supply-chain action initiated by the customer. Traditionally,
the supply chain was pushed; manufacturers produced goods and
"pushed" them through the supply chain, and the customer had
no control.
In a pull environment, a customer's purchase sends
replenishment information back through the supply chain from
retailer to distributor to manufacturer, so goods are "pulled"
through the supply chain |
