Glossary

Supply chain glossary

Plain definitions of inventory, purchasing, production, and demand planning terms, each with the formula and a worked example in rand.

ABC-XYZ analysis

A method that groups products by their value (ABC) and by how steady their demand is (XYZ).

The list of components, quantities, and costs that you need to make one unit of a product.

The order size that gives the lowest total cost of ordering and holding stock.

A measure of whether each step in your forecast process makes the forecast better or worse.

The record that shows which goods arrived against a purchase order, and in what condition.

Two ways to measure forecast error as a percentage. WAPE gives more weight to the products that sell more.

The stock level at which you place a new order, so that the goods arrive before you run out.

Extra stock that you hold to protect against changes in demand and in supplier lead time.

MAKE. MOVE. MEASURE.

Miridia calculates reorder points, safety stock, and forecast accuracy on your own data.