Supply Chain Management

Card Set Information

Supply Chain Management
2010-03-09 23:03:19
Supply Chain

Exam 2 Vocabulary
Show Answers:

  1. The upper limit or ceiling on the load that an operating unit can handle.
  2. The maximum designed service capacity or output rate.
    Design Capacity
  3. Design Capacity minus personal and other allowances
    Effective Capacity
  4. Extra Capacity used to offset demand uncertainty
    Capacity Cushion
  5. An operation in a sequence of operations whose capacity is lower than the other operations
    Bottleneck Operation
  6. If the output rate is less than the optimal level, increasing the output rate results in decreasing average unit costs.
    Economies of scale
  7. If the output rate is more than the optimal level, increasing the output rate results in increasing average unit costs.
    Diseconomies of scale
  8. Something that limits the preformance of a process or system or system in achieving its coals.
  9. The volume of the output at which total cost and total revenue are equal
    Break-even point (BEP)
  10. The difference between cash received from sales and other sources, and cash outflow for labor, material, overhead, and taxes.
    Cash Flow
  11. The sum, in current value, of all future cash flows of an investment proposal.
    Present Value
  12. Table showing the expected payoffs for each alternative in every possible state of nature.
    Payoff Table
  13. The limitations on decision making caused by the coasts, human abilities, time, technology, and availability of information.
    Bounded Rationality
  14. The result of different departments each attempting to reach a solution that is optimum for that department.
  15. Enviroment in which certain future events have probable outcomes.
  16. Enviroment in which it is impossible to assess the likelihood of various future events
  17. Choose the alternative with the best of the worst possible payoffs.
  18. Chooses the alternative with the best possible payoff
  19. Choose the alternative with the best average payoff of any of the alternatives.
  20. Choose the alternative that has the least of the worst regrets.
    Minimax regret
  21. The difference between a given payoff and the best payoff for a state of nature.
    Regret (Opportunity Loss)
  22. The best expected value among the alternatives
    Expected monetary value (EMV) criterion
  23. A schematic representation of the available alternatives and their possible consequences.
    Decision Tree
  24. The difference between the expected payoff with perfect information and the expected payoff under risk.
    Expected value of perfect information (EVPI)
  25. Determining the range of probability for which an alternative has the best expected payoff
    Sensitivity Analysis
  26. Enviroment in which relevant parameters have known values