P Terms in the Supply Chain Glossary

The hierarchical connection between components in a bill of materials.

A principle stating that a small fraction (e.g., 20%) of a group accounts for the majority (e.g., 80%) of its value or impact, as seen in inventory management.

An order meeting all criteria for accuracy, timeliness, completeness, and cost.

A metric assessing an organization’s ability to consistently deliver perfect orders.

A system that updates inventory records in real-time with each transaction.

A strategic tool evaluating political, economic, social, technological, legal, and environmental factors affecting an organization, often paired with SWOT analysis.

A system using illuminated indicators at storage locations to guide workers during order picking.

An order-picking method allowing items to be transferred directly from storage to a trailer without additional verification steps.

A warehouse picking method where workers follow verbal instructions to locate and retrieve items.

The time frame covered by a plan, ranging from short-term schedules to long-term capacity planning.

Using data to identify trends and forecast future outcomes.

Preventive maintenance that uses testing and data analysis to anticipate when servicing will be needed.

Products created by one company but branded and sold by a retailer.

Activities involved in planning, purchasing, and managing inventory, as well as receiving and inspecting goods.

The duration from deciding to produce a new product to starting production.

The sequence of processes from placing a purchase order to completing payment.

A system for tracking product configurations, revisions, and design histories, streamlining design and manufacturing processes.

Planning and controlling the production process to convert inputs into finished goods.

The output schedule from production planning, detailing manufacturing targets typically stated in monthly rates for product families.

Developing tactical plans to balance production capabilities with sales forecasts, aligning with business objectives.

Managing the creation, use, and maintenance of product information throughout its lifecycle to meet customer needs.

A model guiding activities from product ideation to widespread adoption in the market.

A demand-driven approach where production or material replenishment occurs only when needed.

Managing the acquisition of materials, supplies, and services for an organization.

An individual authorized to procure goods and services on behalf of a company.

Securing production time or capacity from a supplier.

The total time required to acquire a purchased item, including preparation, supplier time, transportation, and inspection.

A production or inventory system where materials are issued or manufactured based on a predefined schedule.