Supply Chain Logistics Glossary
A
ABC CLASSIFICATION
Method of product classification used in inventory management based on the definition of three classes. Class A includes 10 to 20% of the articles representing about 80% of the inventory value. The most refined methods of inventory management will be used for this class. Class B comprises 15 to 20% of the articles representing about 15% of the value. Class C covers the remaining articles (between 60 and 75% of items) representing about 5% of the value. The latter will be managed less strictly.
ACTIVE INVENTORY
Quantity of products received at each delivery and integrally consumed during the period.
ACTIVITY BASED COSTING (ABC)
A technique to determine the resources required to produce a particular product or serve a particular set of customers. This should serve to determine which products or customers are profitable and also to improve a process.
ACTIVITY BASED MANAGEMENT (ABM)
Management approach based on the identification and optimization of processes defined as a set of interrelated activities.
ADVANCED ORDER MANAGEMENT (AOM)
Computer application and component of SCE packages, supporting the management and administrative processing of orders and promotions.
ADVANCED PLANNING AND SCHEDULING (APS)
Software package for planning the physical flows between supplier and producer from data (originating from ERP systems, for example) generated by each of the actors.
APPLICATION SERVICES PROVIDER (ASP)
Business of offering online computing applications for a fee. The software package vendor or Computer Services Company generally offer a number of complementary services (consulting, and training for example) that support the implementation and use of the application subscribed to.
