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value of inventory withdrawn from a certain category and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
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