Supply Chain Glossary - C

Supply Chain Glossary - C

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A series of batches of the same product run together (back to back).

A fee charged by a seller to cover its costs associated with a customer's cancellation of an order. If the seller has started engineering work, purchased raw materials, or started manufacturing operations, these charges could also be included in the cancellation charge.

An ordering system used when multiple items are ordered from one vendor. The can-order point is a point higher than the original order point. When any one of the items triggers an order by reaching the must-order point, all items below their can-order point are also ordered. The can-order point is set by considering the additional holding cost that would be incurred should the item be ordered early.


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