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Here is a compilation of
popular acronyms and abbreviations in demand forecasting and
supply chain management.
ABF - Account Based Forecasting, also known as
Customer Planning or Customer Specific Forecasting (CSF), refers
to a bottom up demand forecasting process which starts with
customer retail forecast, then arrives at a customer shipment
forecast to be aggregated into a supply chain forecast.
APICS -
The Association for
Operations Management.
APO -
Advanced Planner and Optimizer, the planning software from
SAP AG.
BOM -
Bill of Materials
CPFR - Collaborative, Planning, Forecasting and
Replenishment is a concept popularized and institutionalized by the
VICS organization to enable
manufacturers and retailers to better collaborate on forecasting and
promotional planning to achieve supply chain efficiencies.
CPG - Consumer
Packaged Goods, refers to the manufacturers and supplies in the
Packaged Goods industry, a very specific reference to companies that
manufacture or distribute Consumer Packaged Goods to the retail
environment.
CPIM -
Certified in Production and Inventory Management, a certification
offered by the
APICS,
the Association for Operations Management.
CRM - Customer Relationship Management; the
process and discipline to analyze the trade funds, promotional
planning and execution and evaluating the effectiveness of
promotions. Oracle CRM, Siebel, and SAP CRM are the dominant
players in this space. Siebel and Demantra have been acquired
by Oracle.
CRP - Continuous Replenishment Program, another term
to denote VMI or Vendor Managed Inventories, where the supplier or
manufacturer monitors the inventory at the customer warehouse on a
continuous basis and writes the orders on behalf of the customer to
ensure warehouses are adequately stocked.
DC -
Distribution Center
DP
- Demand Planning, a functional and subject reference to the
forecasting group and role
DDSN - Demand Driven Supply Networks
DRP -
Distribution Requirements Planning
EDI
-
Electronic Data Interchange
EOQ -
Economic Order Quantity
FG
- Finished Goods
JIT -
Just In Time
KPI -
Key Performance Indicator
LTL -
Less than Truck Load
MAPE -
Mean Absolute Percent Error, a
cross-sectional measure to calculate the demand forecast error
across products, customers, divisions etc.
MAD -
Mean Absolute Deviation, similar to MAPE before it
becomes a percentage error. Academics respect this measure,
largely due to confusion and mis-interpretations around the MAPE.
MRP -
Materials Requirements Planning
MTO -
Made to Order, a type of production and inventory strategy that
starts the manufacturing process only on receipt of the customer
order. The manufacturer has the luxury of making the customer
order, (and perhaps pay) and wait.
Dell is a classic example of a MTO
business model.
MTS -
Made to Stock, a production and replenishment model that keeps
inventory of products, anticipating customer orders.
OLS -
Ordinary Least Squares, the most basic methodology for
model fitting by choosing the model that minimizes the residual
error.
PMAD -
Percent Mean Absolute Deviation
RMSE -
Root Mean Squared Error, a measure of model diagnostic and with more
application in inventory management to set parameters for safety
stock calculations.
SCOR -
Supply Chain Operations Reference Model
S&OP - Sales and Operations Planning
SIOP - Sales, Inventory and Operations Planning
SNP - Supply Network Planning
SMR - Supplier Managed Inventory, very similar to VMI
except here the manufacturer lets their inventories be managed by a
supplier of key components and input products.
VMI - Vendor Managed Inventories, where the
supplier or manufacturer monitors the inventory at the customer
warehouse on a continuous basis and writes the orders on behalf of
the customer to ensure warehouses are adequately stocked.
WIP -
Work in Process
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