CPIM Part 2 - 2024
ABC CLassification -ANS-The classification of a group of items in decreasing order of
annual dollar volume or other criteria
Advanced Planning and Scheduling (APS) -ANS-Techniques that deal with analysis and
planning of logistics and manufacturing during short, intermediate, and long-term time
periods
Advance ship notice (ASN) -ANS-An electronic data interchange (EDI) notification of
shipment of product.
Andon -ANS-A sign board with signal lights used to make workers and management
aware of a quality, quantity, or process problem
Anticipation Inventories -ANS-Additional inventory above basic pipeline stock to cover
projected trends of increasing sales, planned sales promotion programs, seasonal
fluctuations, plant shutdowns, and vacations
Assemble-To-Order (ATO) -ANS-A production environment where a good or service can
be assembled after receipt of a customer's order. The key components (bulk, semi-
finished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in
the assembly or finishing process are planned and usually stocked in anticipation of a
customer order. Receipt of an order initiates assembly of the customized product. This
strategy is useful where a large number of end products (based on the selection of
options and accessories) can be assembled from common components.
Assembly line -ANS-An assembly process in which equipment and work centers are laid
out to follow the sequence in which raw materials and parts are assembled
,Assignable Cause -ANS-A source of variation in a process that can be isolated, especially
when its significantly larger magnitude or different origin readily distinguishes it from
random causes of variation
Available Inventory -ANS-The on-hand inventory balance minus allocations,
reservations, backorders, and (usually) quantities held for quality problems
Available-To-Promise (ATP) -ANS-In operations, the uncommitted portion of a
company's inventory and planned production maintained in the master schedule to
support customer-order promising.
Average Inventory -ANS-One-half the average lot size plus the safety stock, when
demand and lot sizes are expected to be relatively uniform over time. The average can
be calculated as an average of several inventory observations taken over several
historical times periods
Backflush -ANS-A method of inventory bookkeeping where the book inventory of
components is automatically reduced by the computer after completion of activity on
the component's upper-level parent item based on what should have been used as
specified on the bill of material and allocation records. This approach has the
disadvantage of a built-in differential between the book record and what is physically in
stock
Backhauling -ANS-The process of a transportation vehicle returning from the original
destination point to the point of origin
Backlog -ANS-All the customer orders received but not yet shipped. Sometimes referred
to as open orders or the order board
Backorder -ANS-An unfilled customer order or commitment. It is an immediate (or past
due) demand against an item whose inventory is insufficient to satisfy the demand
,Back Scheduling -ANS-A technique for calculating operation start dates and due dates.
The schedule is computed starting with the due date for the order and working
backward to determine the required start date and/or due date for each operation
Balance Sheet -ANS-A financial statement showing the resources owned, the debts
owed, and the owner's share of a company at a given point in time
Bar Code -ANS-A series of alternating bars and spaces printed or stamped on parts,
containers, labels, or other media, representing encoded information that can be read
by electronic readers. Used to facilitate timely and accurate input of data to a computer
system
Batch -ANS-A quantity scheduled to be produced or in production.
Batch Picking -ANS-A method of picking orders in which order requirements are
aggregated by product across orders to reduce movement to and from product
locations. The aggregated quantities of each product are then transported to a common
area where the individual orders are constructed
Bias -ANS-A consistent deviation from the mean in one direction. A normal property of a
good forecast is that it is not biased
Bill of Lading (Uniform) (B/L) -ANS-A carrier's contract and receipt for goods the carrier
agrees to transport from one place to another and to deliver to a designated person. In
case of loss, damage, or delay, the bill of lading is the basis for filing freight claims
Bill of Material (BOM) -ANS-a listing of all the subassemblies, intermediates, parts, and
raw materials that go into a parent assembly showing the quantity of each required to
make an assembly
, Bonded Warehouse -ANS-Buildings or parts of buildings designated by the US Secretary
of the Treasury for storing imported merchandise, operated under US Customs
supervision
Bottleneck -ANS-A facility, function, department, or resource whose capacity is less than
the demand placed upon it
Break-Bulk -ANS-Dividing truckloads, railcars, or containers of homogeneous items into
smaller, more appropriate quantities for use
Break-Even Point -ANS-The level of production of the volume of sales at which
operations are neither profitable nor unprofitable. The break-even point is the
intersection of the total revenue and total cost curves
Buffer -ANS-A quantity of materials awaiting further processing. It can refer to raw
materials, semifinished stores or hold points, n or a work backlog that is purposely
maintained behind a work center
Buffer Management -ANS-In the theory of constraints, a process in which all expediting
in a shop is driven by what is scheduled to be in the buffers
Bullwhip Effect -ANS-An extreme change in the supply position upstream in a supply
chain generated by a small change in demand downstream in the supply chain.
Inventory can quickly move from being back-ordered to being excess. This is caused by
the serial nature of communicating orders up the chain with the inherent transportation
delays of moving product down the chain. Can be eliminated by synchronizing the
supply chain
ABC CLassification -ANS-The classification of a group of items in decreasing order of
annual dollar volume or other criteria
Advanced Planning and Scheduling (APS) -ANS-Techniques that deal with analysis and
planning of logistics and manufacturing during short, intermediate, and long-term time
periods
Advance ship notice (ASN) -ANS-An electronic data interchange (EDI) notification of
shipment of product.
Andon -ANS-A sign board with signal lights used to make workers and management
aware of a quality, quantity, or process problem
Anticipation Inventories -ANS-Additional inventory above basic pipeline stock to cover
projected trends of increasing sales, planned sales promotion programs, seasonal
fluctuations, plant shutdowns, and vacations
Assemble-To-Order (ATO) -ANS-A production environment where a good or service can
be assembled after receipt of a customer's order. The key components (bulk, semi-
finished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in
the assembly or finishing process are planned and usually stocked in anticipation of a
customer order. Receipt of an order initiates assembly of the customized product. This
strategy is useful where a large number of end products (based on the selection of
options and accessories) can be assembled from common components.
Assembly line -ANS-An assembly process in which equipment and work centers are laid
out to follow the sequence in which raw materials and parts are assembled
,Assignable Cause -ANS-A source of variation in a process that can be isolated, especially
when its significantly larger magnitude or different origin readily distinguishes it from
random causes of variation
Available Inventory -ANS-The on-hand inventory balance minus allocations,
reservations, backorders, and (usually) quantities held for quality problems
Available-To-Promise (ATP) -ANS-In operations, the uncommitted portion of a
company's inventory and planned production maintained in the master schedule to
support customer-order promising.
Average Inventory -ANS-One-half the average lot size plus the safety stock, when
demand and lot sizes are expected to be relatively uniform over time. The average can
be calculated as an average of several inventory observations taken over several
historical times periods
Backflush -ANS-A method of inventory bookkeeping where the book inventory of
components is automatically reduced by the computer after completion of activity on
the component's upper-level parent item based on what should have been used as
specified on the bill of material and allocation records. This approach has the
disadvantage of a built-in differential between the book record and what is physically in
stock
Backhauling -ANS-The process of a transportation vehicle returning from the original
destination point to the point of origin
Backlog -ANS-All the customer orders received but not yet shipped. Sometimes referred
to as open orders or the order board
Backorder -ANS-An unfilled customer order or commitment. It is an immediate (or past
due) demand against an item whose inventory is insufficient to satisfy the demand
,Back Scheduling -ANS-A technique for calculating operation start dates and due dates.
The schedule is computed starting with the due date for the order and working
backward to determine the required start date and/or due date for each operation
Balance Sheet -ANS-A financial statement showing the resources owned, the debts
owed, and the owner's share of a company at a given point in time
Bar Code -ANS-A series of alternating bars and spaces printed or stamped on parts,
containers, labels, or other media, representing encoded information that can be read
by electronic readers. Used to facilitate timely and accurate input of data to a computer
system
Batch -ANS-A quantity scheduled to be produced or in production.
Batch Picking -ANS-A method of picking orders in which order requirements are
aggregated by product across orders to reduce movement to and from product
locations. The aggregated quantities of each product are then transported to a common
area where the individual orders are constructed
Bias -ANS-A consistent deviation from the mean in one direction. A normal property of a
good forecast is that it is not biased
Bill of Lading (Uniform) (B/L) -ANS-A carrier's contract and receipt for goods the carrier
agrees to transport from one place to another and to deliver to a designated person. In
case of loss, damage, or delay, the bill of lading is the basis for filing freight claims
Bill of Material (BOM) -ANS-a listing of all the subassemblies, intermediates, parts, and
raw materials that go into a parent assembly showing the quantity of each required to
make an assembly
, Bonded Warehouse -ANS-Buildings or parts of buildings designated by the US Secretary
of the Treasury for storing imported merchandise, operated under US Customs
supervision
Bottleneck -ANS-A facility, function, department, or resource whose capacity is less than
the demand placed upon it
Break-Bulk -ANS-Dividing truckloads, railcars, or containers of homogeneous items into
smaller, more appropriate quantities for use
Break-Even Point -ANS-The level of production of the volume of sales at which
operations are neither profitable nor unprofitable. The break-even point is the
intersection of the total revenue and total cost curves
Buffer -ANS-A quantity of materials awaiting further processing. It can refer to raw
materials, semifinished stores or hold points, n or a work backlog that is purposely
maintained behind a work center
Buffer Management -ANS-In the theory of constraints, a process in which all expediting
in a shop is driven by what is scheduled to be in the buffers
Bullwhip Effect -ANS-An extreme change in the supply position upstream in a supply
chain generated by a small change in demand downstream in the supply chain.
Inventory can quickly move from being back-ordered to being excess. This is caused by
the serial nature of communicating orders up the chain with the inherent transportation
delays of moving product down the chain. Can be eliminated by synchronizing the
supply chain
