Purchasing is a key business function that is responsible for acquisition of the required materials

identification, acquisition, access, positioning and management of resources an organization needs or potentially needs in the attainment of its strategic objectives.”

allows users to submit their purchase requisitions to the purchasing department electronically and enables buyers to transmit purchase orders to suppliers over the Internet, fax or mail

to produce superior products at a reasonable cost to enhance the buyer’s competitive edge.

Suppliers can assist in new product design and development through early supplier involvement (ESI)

select the best components and technologies and help in design assessment.

is the supplier financially stable?

Is the supplier’s delivery lead time reliable?

Placing orders with a supplier should be easy, quick and effective. Delivery lead time should be short

The firm should also consider whether the supplier has the capacity to fill orders to meet requirements

Geographical location is another important factor in supplier selection, as it impacts delivery lead-time, transportation and logistical costs.

Suppliers must be able to back up their products by providing good services when needed.

Suppliers should also possess a communication capability that facilitates communication between the parties.

Demand management includes determining the aggregate demand based on forecasts of future demand, customer orders, special promotions and safety stock requirements.

is the process of working together to organize and to resolve key barriers to rapid and efficient delivery of goods in the supply chain.

is the activity of accomplishing timely, accurate and complete fulfilment between partners in the supply chain and between distribution centers and selling

locations

to the maximum workload that an organization is capable of completing in a given period of tim

broadly used industrial term to describe the multimodule application software for managing an enterprise’s functional activities, suppliers and customers.

can be defined as “ the process of determining the production capacity required to meet demand”

The aggregate production plan (APP)

The aggregate production plan sets the aggregate output rate, workforce size, utilization and inventory and/or backlog levels for an entire facility.

The master production schedule (MPS)

It shows the quantity and timing of the end items that will be produced.

MRP is the detailed planning process for component parts to support the master production schedule.

The primary functions of inventory are to buffer uncertainty in the marketplace and to decouple, or break the dependencies between stages in the supply chain.

are unprocessed purchased inputs or materials for manufacturing the finished goods

describes materials that are partially processed but not yet ready for sales.

are completed products ready for shipment

materials and supplies used when producing the products but are not parts of the products. Solvents, cutting tools and lubricants for machines are examples of

to reconcile discrepancies between their physical inventory and inventory record on a monthly or quarterly basis.

is a useful technique for determining which inventories should be counted more frequently and managed more closely and which others should not.

can be defined as a set of activities designed to produce a product or service for an internal or external customer

“that part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.”

applications allow firms to find carriers, select the best mix of transportation services and pricing to determine the best use of containers or truck trailers, better manage transportation contracts, rank transportation options, clear customs, track fuel usage and product movements, and track carrier performance.

track and control the flow of goods from the receiving dock of a warehouse or distribution center until the item is loaded for outbound shipment to the customer.