Glossary of Terms

ABC analysis

The stratification of inventory into levels associated with monetary and/or volume levels. Materials planning utilizes this methodology extensively in planning methodologies.

APICS

American Production and Inventory Control Society. This organization of professionals is the keeper of the body of knowledge for inventory planning topics and process flow materials. It can be reached at 800-444-APIC.

ATO

Assemble to order. An inventory strategy that master-schedules assemblies for availability when demand happens. Subassemblies and/or components are assembled after the demand signal. Dell Computer has made this strategy famous in recent years.

audit

To audit a process such as inventory accuracy is to check accuracy of a process by a defined periodic check and measure.

balance by location

An inventory balance for only one location where a material or item is stored. This should not be confused with having more than one item in a location. They do not address the same subject.

BOM

Bill of material. The BOM is a record file that documents the description of all component and ingredient relationships including quantity per and all item and material numbers. It normally resides in the computer business system, but copies may also be available in the engineering design systems.

BOR

Bill of resource. The BOR is a record file that documents the BOM information along with the routing records. It documents the sequence of materials used in the process by tying each component to a process step.

brainstorming

Brainstorming is a technique used to develop ideas in...