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396 SUPPLYCHAINMANAGEMENTTECHNOLOGIESwhich may squeeze some players out of the chain. Com-
panies need to be alert to the technologies that will make
them either winners or losers in this new supply chain
environment. Supply chain management has emerged
as one of the top priority strategies in manufacturing
today.GLOSSARY
Active collaboration technologies Real-time tech-
nologies (usually Internet based) that allow the various
members of a supply chain to share information and
work together toward a common goal.
Advanced planning and scheduling (APS) A supply
chain planning tool that goes beyond the planning and
scheduling of ERP by attempting to produce an op-
timized plan based on variables and constraints that
limit the ability to deliver the right product at the right
time.
Bull-whip effect A term describing the phenomenon
that occurs when inventory demand variability is af-
fected by changes further down the supply chain. The
more distant an inventory buffer is from the consumer,
the more variability will occur for its demand.
Business-to-business purchasing Purchasing that al-
lows companies to integrate with their most important
suppliers, usually via the Internet. It provides the capa-
bility to streamline the processes associated with pur-
chasing.
Customer relationship management (CRM) An infor-
mation system used to manage all activities related to
customers, including contacts, customer orders, infor-
mation requests, and technical support.
E-business Using the Internet and other information
technologies to perform business process activities.
E-commerce Buying and selling goods on the Internet,
sometimes used interchangeably with e-business.
Economic order quantity An order quantity algo-
rithm to calculate how much of an item to purchase
or manufacture at one time. It attempts to minimize
the costs of acquiring and carrying inventory.
Enterprise Resource Planning (ERP) An integrated
information system used to manage the corporate and
business location processes within a manufacturing
environment. Such transaction-based systems serve
all functions within an enterprise and are often the
data source of the decision support systems of supply
chain management. Most ERP systems include soft-
ware modules for manufacturing, inventory manage-
ment, order processing, accounting, purchasing, and
warehousing.
Extranet Two or more intranets linked together, allow-
ing multiple companies to exchange information and
share resources for a common purpose. Members of a
supply chain often form extranets with each other.
Genetic algorithm A problem-solving algorithm that
establishes sets of possible solutions and then uses an
evolution-like process to determine the best or opti-
mum solution.
Heuristics Problem-solving techniques that involve the
use of subjective knowledge, trial and error, and rule of
thumb.Intranet A private network (resembling the Internet)
for the exclusive use of those who are authorized to use
it, normally those within a company or other organi-
zation.
Linear programming A mathematical technique used
to obtain an optimum solution in resource allocation
problems, such as production planning.
Vendor managed inventory The arrangement by
which vendors manage inventory they own inside the
stores of their retailers. The retail stores become an ex-
tension of the vendor’s warehouses, allowing them to
track inventory at the point of consumption.CROSS REFERENCES
SeeBusiness-to-Business Electronic Commerce; Customer
Relationship Management on the Web; Electronic Com-
merce and Electronic Business; Enterprise Resource Plan-
ning (ERP); Intranets; Inventory Management; Supply
Chain Management.REFERENCES
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Anderson, B. F. (1997, April). The seven principles of
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Banker, S. (1998, August). Different supply chains require
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