Product Suite

Supply Chain Glossary - H

Supply Chain Glossary - H

hurdle rate

The minimum acceptable rate of return on a project.

A situation in which only one trading partner is EDI enabled, while the other continues to use paper and fax. Usually the EDI-enabled partner would have electronic documents converted to fax.

An inventory system combining features of the fixed reorder quantity inventory model and the fixed reorder cycle inventory model. Features of the fixed reorder cycle inventory model and the fixed reorder quantity inventory model can be combined in many different ways. For example, in the order point-periodic review combination system, an order is placed if the inventory level drops below a specified level before the review date; if not, the order quantity is determined at the next review date. -Another hybrid inventory system is the optional replenishment model. See: fixed reorder cycle inventory model, fixed reorder quantity inventory model, optional replenishment model, order point system.

An organizational structure that embodies multiple organizational forms (functional, product, or geographical) simultaneously. For example, some functions may be centralized (such as finance and accounting), whereas others may be duplicated geographically (such as sales).

A production planning method that combines the aspects of both the chase and level production planning methods. Syn: hybrid strategy. See: chase production method, level production method, production planning method.

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