Vendor-Managed Inventory (VMI), Value Chain, Value stream

 

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Detailed terminology list , in pdf form, will soon be available

 
 

Value Analysis
A method to determine how features of a product or service relate to cost, functionality, appeal and utility to a customer (i.e., engineering value analysis)
 
Value Based Return (VBR)
A measure of the creation of value. It is the difference between economic profit and capital charge

Value Chain
A series of activities, which combined, define a business process; the series of activities from manufacturers to the retail stores that define the industry supply chain

Value Chain Analysis
A method to identify all the elements in the linkage of activities a firm relies on to secure the necessary materials and services, starting from their point of origin, to manufacture, and to distribute their products and services to an end user

Value of Transfers
The total dollar value (for the calendar year) associated with movement of inventory from one “bucket” into another, such as raw material to work-in-process, work-in-process to finished goods, plant finished goods to field finished goods or customers, and field finished goods to customers. Value of Transfers is based on the value of inventory withdrawn from a certain category and is often approached from a costing perspective, using cost accounts. For example, Raw Materials Value of Transfers is the value of transfers out of the raw material cost accounts (you may have cost centers associated with inventory locations, but all "raw ingredients" usually share common cost accounts or can be rolled up into one financial view). The same goes for WIP. Take the manufacturing cost centers and look at the total value of withdrawals from those cost centers. While Average Gross Inventory represents the value of the inventory in the cost center at any given time, the Value of Transfers is the total value of inventory leaving the cost center during the year. The value of transfers for Finished Goods is, in theory,equivalent to COGS.

Value Proposition
What the supply chain member offers to other members. To be truly effective, the value proposition has to be two-sided; a benefit to both buyers and sellers

Value stream
All activities, both value added and non value added, required to bring a product from raw material state into the hands of the customer, bring a customer requirement from order to delivery and bring a design from concept to launch

Vendor
The manufacturer or distributor of an item or product line 

Vendor-Managed Inventory (VMI)
The practice of retailers making suppliers responsible for determining order size and timing, usually based on receipt of retail POS and inventory data. Its goal is to increase retail inventory turns and reduce stock outs. Its goal is to increase retail inventory turns and reduce stock outs. It may or may not involve consignment of inventory (supplier ownership of the inventory located at the customer end)

Vertical Integration
The degree to which a firm has decided to directly produce multiple value-adding stages from raw material to the sale of

 
 

the product to the ultimate consumer. The more steps in the sequence, the greater the vertical integration. A manufacturer that decides to begin producing parts, components, and materials that it normally purchases is said to be backward integrated. Likewise, a manufacturer that decides to take over distribution and perhaps sale to the ultimate consumer is said to be forward integrated
 

variation clause
It is inevitable that parties to a contract may want to vary parts of the contract after agreement, therefore it is important to sort out the process of variation from the outset. Variations have to be agreed on by both parties, and usually in writing, and these provisions should be detailed in the contract.

 

 

 
 

 

Get terms alphabetically:  A B C D E F G H I J K L M N O P Q R S T U V W X Y Z   

 
 
 

 

 
 

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