M Terms in the Supply Chain Glossary

Items used for reprocessing in remanufacturing industries to restore functionality or support ongoing operations.

A cost comparison between producing an item internally and purchasing it from an external supplier.

The process of deciding whether to produce an item in-house or outsource it.

A production model where goods or services are manufactured only after receiving a customer order.

A production strategy where products are manufactured in advance and stored.

Software and systems that manage and monitor shop floor operations, including equipment control, process tracking, quality data collection, and real-time performance reporting.

The total time required to produce an item, from order release to shipment or inventory receipt.

An integrated system managing production planning and execution, covering functions like sales and operations planning, master scheduling, material requirements, capacity planning, and real-time shop floor control.

A comprehensive planning method addressing all manufacturing resources, integrating business, production, material, and capacity plans with financial forecasting and reporting.

The process of using real-time market signals to shape and respond to demand, employing strategies such as price optimization, promotions, and digital engagement.

A consolidated financial plan encompassing all organizational budgets, projecting cash flow, operational results, and a balance sheet for the budget period.

A foundational agreement outlining terms for future purchases or transactions over a set period. Also, a collective bargaining agreement between an employer and a union.

Core enterprise information, such as product details, customer and supplier information, and organizational structures, essential for business operations.

A coordinated process ensuring enterprise data is accurate, consistent, complete, and accessible across systems and stakeholders.

A set of activities, including demand forecasting, production planning, and master scheduling, aimed at aligning resources with organizational goals.

A detailed plan specifying the quantities and timelines for manufacturing items.

The authoritative document detailing a product’s routing process.

A comprehensive schedule integrating forecasts, customer orders, inventory projections, and production plans to meet organizational goals and constraints.

The coordinated movement, storage, and handling of materials and products throughout production, warehousing, and distribution processes.

Unauthorized purchases made outside of established procurement processes and from non-approved suppliers.

A logistics strategy where a single vehicle collects smaller shipments from multiple suppliers, consolidating them into a single delivery to the customer.

A planning tool organizing product components into modules or options, commonly used for products with numerous customizable features.

A modeling technique using random sampling and probability distributions to analyze and predict outcomes in complex systems.

An approach to competing globally by leveraging cross-country coordination to achieve cost efficiencies, economies of scope, and competitive advantages.