CSCP Module 1 Terms and Explanations

CSCP Module 1 Terms and
Explanations
DecouplingA-
AAnswerACreatingAindependenceAbetweenAsupplyAandAuseAofAmaterial.ACommonlyAdenotesA
providingAinventoryAbetweenAoperationsAsoAthatAfluctuationsAinAtheAproductionArateAofAthe
AsupplyingAoperationAdoAnotAconstrainAproductionAorAuseAratesAofAtheAnextAoperation.



grossAmarginA-AAnswerATheAdifferenceAbetweenAtotalArevenueAandAcostAofAgoodsAsold



optimizationA-
AAnswerAAchievingAtheAbestApossibleAsolutionAtoAaAproblemAinAtermsAofAaAspecifiedAobject
iveAfunction.



cycleAstockA-
AAnswerAOneAofAtheAtwoAmainAconceptualAcomponentsAofAanyAitemAinventory,AtheAcycleAs
tockAisAtheAmostAactiveAcomponent;AtheAcycleAstockAdepletesAgraduallyAasAcustomerAorders
AareAreceivedAandAisAreplenishedAcyclicallyAwhenAsupplierAordersAareAreceived.ATheAotherAc
onceptualAcomponentAofAtheAitemAinventoryAisAtheAsafetyAstock,AwhichAisAaAcushionAofApr
otectionAagainstAuncertaintyAinAtheAdemandAorAinAtheAreplenishmentAleadAtime.



stockoutAcostsA-
AAnswerAThoseAcostsAmayAincludeAlostAsales,AbackorderAcosts,Aexpediting,AandAadditionalAm
anufacturingAandApurchasingAcosts



InterplantAdemandA-
AAnswerAOneAplant'sAneedAforAaApartAorAproductAthatAisAproducedAbyAanotherAplantAorAdi
visionAwithinAtheAsameAorganization.AAlthoughAitAisAnotAaAcustomerAorder,AitAisAusuallyAha
ndledAbyAtheAmasterAproductionAschedulingAsystemAinAaAsimilarAmanner.



DemandAshapingA-
AAnswerATheApracticeAofAusingAtheA4APsA(product,Apricing,Aplacement,Apromotion)AandAoth
erAmarketAvariablesAtoAinfluenceAtheAdemandAofAaAproductAorAserviceAsoAthatAtheAdemand
AbetterAmatchesAtheAavailableAsupply.



bufferA-
AAnswerA1)AAAquantityAofAmaterialsAawaitingAfurtherAprocessing.AItAcanAreferAtoArawAmater
ials,AsemifinishedAstoresAorAholdApoints,AorAaAworkAbacklogAthatAisApurposelyAmaintainedAb
ehindAaAworkAcenter.A2)AInAtheAtheoryAofAconstraints,AtheseAcanAbeAtimeAorAmaterialAand

,AsupportAthroughputAand/orAdueAdateAperformance.ATheyAcanAbeAmaintainedAatAtheAconstr
aint,AconvergentApointsA(withAaAconstraintApart),AdivergentApoints,AandAshippingApoints.



standardAcostsA-
AAnswerATheAtargetAcostsAofAanAoperation,Aprocess,AorAproductAincludingAdirectAmaterial,Ad
irectAlabor,AandAoverheadAcharges.



demandAforecastingA-
AAnswerAForecastingAtheAdemandAforAaAparticularAgood,Acomponent,AorAservice.



returnAonAinvestmentAROIA-
AAnswerAAArelativeAmeasureAofAfinancialAperformanceAthatAprovidesAaAmeansAforAcomparin
gAvariousAinvestmentsAbyAcalculatingAtheAprofitsAreturnedAduringAaAspecifiedAtimeAperiod.



theoryAofAconstraintsAROIA-
AAnswerAcalculatedAasAthroughputAminusAoperatingAexpenseAdividedAbyAinvestment.



pullAsystemA-
AAnswerA1)AInAproduction,AtheAproductionAofAitemsAonlyAasAdemandedAforAuseAorAtoArepl
aceAthoseAtakenAforAuse.A2)AInAmaterialAcontrol,AtheAwithdrawalAofAinventoryAasAdemanded
AbyAtheAusingAoperations.AMaterialAisAnotAissuedAuntilAaAsignalAcomesAfromAtheAuser.A3)AI
nAdistribution,AaAsystemAforAreplenishingAfieldAwarehouseAinventoriesAwhereAreplenishmentA
decisionsAareAmadeAatAtheAfieldAwarehouseAitself,AnotAatAtheAcentralAwarehouseAorAplant.



vendorA-
AAnswerAAAbusinessAfromAwhichAmerchandise,Asupplies,AorAotherAassetsAareApurchased.



serviceAindustryA-
AAnswerA1)AInAitsAnarrowestAsense,AanAorganizationAthatAprovidesAanAintangibleAproductA(e
.g.,AmedicalAorAlegalAadvice).A2)AInAitsAbroadestAsense,AallAorganizationsAexceptAfarming,Ami
ning,AandAmanufacturing.



marketAdrivenA-AAnswerArespondingAtoAcustomerAneeds



processAchartA-
AAnswerAAAchartAthatArepresentsAtheAsequenceAofAworkAorAtheAnatureAofAeventsAinAproce
ss.AItAservesAasAaAbasisAforAexaminingAandApossiblyAimprovingAtheAwayAtheAworkAisAcarried
Aout.

, ObsolescenceA-
AAnswerA1)ATheAconditionAofAbeingAoutAofAdate.AAAlossAofAvalueAoccasionedAbyAnewAdeve
lopmentsAthatAplaceAtheAolderApropertyAatAaAcompetitiveAdisadvantage.AAAfactorAinAdepreci
ation.A2)AAAdecreaseAinAtheAvalueAofAanAassetAbroughtAaboutAbyAtheAdevelopmentAofAnew
AandAmoreAeconomicalAmethods,Aprocesses,AorAmachinery.A3)ATheAlossAofAusefulnessAorAw
orthAofAaAproductAorAfacilityAasAaAresultAofAtheAappearanceAofAbetterAorAmoreAeconomical
Aproducts,Amethods,AorAfacilities.



tacticalAbuyingA-
AAnswerATheApurchasingAprocessAfocusedAonAtransactionsAandAnonstrategicAmaterialAbuying.
AItAisAcloselyAalignedAwithAtheA"ordering"AportionAofAexecutingAtheApurchasingAtransactionA
process.ATheAcharacteristicsAforAtacticalAbuyingAincludeAstable,AlimitedAfluctuations,AdefinedAs
tandardAspecifications,AnoncriticalAtoAproduction,AnoAdeliveryAissues,AandAhighAreliabilityAcon
cerningAquality-standardAmaterialAwithAveryAlittleAconcernAforArejects.



CostAofAgoodsAsoldACOGSA-
AAnswerAAnAaccountingAclassificationAusefulAforAdeterminingAtheAamountAofAdirectAmaterials
,AdirectAlabor,AandAallocatedAoverheadAassociatedAwithAtheAproductsAsoldAduringAaAgivenAp
eriodAofAtime.



InventoryAoptimizationAsoftwareA-
AAnswerAAAcomputerAapplicationAhavingAtheAcapabilityAofAfindingAoptimalAinventoryAstrategi
esAandApoliciesArelatedAtoAcustomerAserviceAandAreturnAonAinvestmentAoverAseveralAechelo
nsAofAaAsupplyAchain.



balancedAscorecardA-
AAnswerAAAlistAofAfinancialAandAoperationalAmeasurementsAusedAtoAevaluateAorganizational
AorAsupplyAchainAperformance.ATheAdimensionsAofAthisAtoolAmightAincludeAcustomerAperspe
ctive,AbusinessAprocessAperspective,AfinancialAperspective,AandAinnovationAandAlearningApersp
ectives.AItAformallyAconnectsAoverallAobjectives,Astrategies,AandAmeasurements.AEachAdimensi
onAhasAgoalsAandAmeasurements.



competitiveAanalysisA-
AAnswerAAnAanalysisAofAaAcompetitorAthatAincludesAitsAstrategies,Acapabilities,ApricesAandAc
osts.



purchasingA-
AAnswerATheAtermAusedAinAindustryAandAmanagementAtoAdenoteAtheAfunctionAofAandAthe
AresponsibilityAforAprocuringAmaterials,Asupplies,AandAservices.