Supply Chain Glossary - D

Supply Chain Glossary - D

decision table

A means of displaying logical conditions in an array that graphically illustrates actions associated with stated conditions.

A method of analysis that evaluates alternative decisions in a tree-like structure to estimate values and/or probabilities. Decision trees take into account the time value of future earnings by using a rollback concept. Calculations are started at the far right-hand side, then traced back through the branches to identify the appropriate decision.

A method of forecasting where time series data are separated into up to three components: trend, seasonal, and cyclical; where trend includes the general horizontal upward or downward movement over time; seasonal includes a recurring demand pattern such as day of the week, weekly, monthly, or quarterly; and cyclical includes any repeating, nonseasonal pattern. A fourth component is random, that is, data with no pattern. The new forecast is made by projecting the patterns individually determined and then combining them. See: cyclical component, random component, seasonal component, trend component.

Creating independence between supply and use of material. Commonly denotes providing inventory between operations so that fluctuations in the production rate of the supplying operation do not constrain production or use rates of the next operation.

An amount of inventory kept between entities in a manufacturing or distribution network to create independence between processes or entities. The objective of decoupling inventory is to disconnect the rate of use from the rate of supply of the item. See: buffer.

The locations in the product structure or distribution network where inventory is placed to create independence between processes or entities. Selection of decoupling points is a strategic decision that determines customer lead times and inventory investment. See: control points.


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