Product Suite

Supply Chain Glossary - S

Supply Chain Glossary - S

standard error

A measurement of the variability of statistics such as the sample mean. See: estimate of error.

A relationship based on a sample distribution by value for a particular company. When the standard ratio for a particular company is known, certain aggregate inventory predictions can be made, e.g., the amount of inventory increase that would be required to provide a particular increase in customer service.

The length of time that should be required to (1) set up a given machine or operation and (2) run one batch or one or more parts, assemblies, or end products through that operation. This time is used in determining machine requirements and labor requirements. Standard time assumes an average worker following prescribed methods and allows time for personal rest to overcome fatigue and unavoidable delays. It is also frequently used as a basis for incentive pay systems and as a basis of allocating overhead in cost accounting systems. Syn: standard hours. See: standard.

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