1
Q
Term
A
Explanation
2
Q
Supply Constraint
A
Limits on how much a supplier or factory can provide
3
Q
Demand Constraint
A
Requirements that customer demand must be met
4
Q
Cost Coefficient (Cij)
A
Cost of producing and transporting one unit from node i to node j
5
Q
Flow Variable (Xij)
A
Quantity transported from source i to destination j
6
Q
Fixed Cost
A
Cost that does not change with production or transportation volume
7
Q
Capacity Constraint
A
Maximum amount that a facility can produce, store, or ship
8
Q
SUMPRODUCT (Excel)
A
A function used to calculate total cost or profit by multiplying quantities and unit values
9
Q
Continuous Improvement
A
Ongoing evaluation and feedback to improve decisions and performance
10
Q
Supply Chain
A
A network of organizations, resources, and activities involved in producing and delivering a product to the final customer
11
Q
Supply Chain Structure
A
The configuration of suppliers, manufacturers, warehouses, distribution centers, and customers
12
Q
Supply Chain Processes
A
Core activities such as sourcing, production, transportation, inventory management, and distribution
13
Q
Decision Making
A
The process of selecting the best alternative among options based on objectives and constraints
14
Q
Single Objective Decision Making (SODM)
A
Decision making focused on optimizing one objective at a time
15
Q
Multi-Criteria Decision Making (MCDM)
A
Decision making that considers multiple conflicting quantitative and qualitative criteria
16
Q
Decision Variables
A
Variables that represent choices to be made
17
Q
Objective Function
A
A mathematical expression defining what must be maximized or minimized
18
Q
Constraints
A
Limitations on resources such as labor, material, capacity, or demand
19
Q
Linear Programming (LP)
A
Optimization technique with linear objective functions and linear constraints
20
Q
Feasible Region
A
The set of all solutions that satisfy all constraints
21
Q
Optimal Solution
A
The feasible solution that provides the best value of the objective function
22
Q
Non-Negativity Constraint
A
A restriction that decision variables cannot take negative values
23
Q
MADM (Multi-Attribute Decision Making)
A
A method used to rank alternatives based on multiple attributes
24
Q
Alternatives
A
The possible options or choices being evaluated
25
Attributes (Criteria)
Factors used to evaluate alternatives
26
Decision Matrix
A table showing alternatives versus attributes with corresponding scores
27
Positive Attribute
An attribute where higher values are preferred
28
Negative Attribute
An attribute where lower values are preferred
29
Likert Scale
A scale used to convert qualitative judgments into quantitative values
30
Normalization
The process of converting different units into dimensionless numbers
31
Euclidean Normalization
A normalization method based on the square root of the sum of squared values
32
Attribute Weight
A numerical value representing the importance of an attribute
33
Standard Deviation Method (SDM)
A weighting method based on variability of attribute values
34
Shannon Entropy Method (SEM)
A weighting method based on information dispersion and uncertainty
35
Dispersion
The degree of variation in attribute values
36
TOPSIS
Technique for Order Preference by Similarity to the Ideal Solution
37
Positive Ideal Solution (PIS)
The best possible value for each attribute
38
Negative Ideal Solution (NIS)
The worst possible value for each attribute
39
Separation Distance
Euclidean distance from an alternative to PIS or NIS
40
Relative Closeness (Ci)
Measure used to rank alternatives based on distance to PIS and NIS
41
Inventory
Materials and goods held for production or sale
42
Inventory Management
Balancing inventory costs and service levels
43
Holding (Carrying) Cost
Cost of storing inventory over time
44
Ordering Cost
Cost of placing and receiving an order
45
Stockout Cost
Cost incurred when demand cannot be met
46
Overstock
Excess inventory leading to high holding costs
47
Stockout
Situation where inventory is insufficient to meet demand
48
ABC Analysis
Inventory classification method based on value importance
49
Group A Items
High-value items requiring strict control
50
Group B Items
Medium-value items requiring moderate control
51
Group C Items
Low-value items requiring simple control
52
Pareto Principle (80/20 Rule)
A small number of items account for most of the total value
53
SKU (Stock Keeping Unit)
A unique identifier for each inventory item
54
EOQ (Economic Order Quantity)
Optimal order quantity that minimizes holding and ordering costs
55
EPQ (Economic Production Quantity)
Optimal production batch size for in-house production
56
EBQ (Economic Batch Quantity)
Model allowing shortages and backorders
57
Demand (D)
Quantity required per time period
58
Order Quantity (Q)
Quantity ordered each time
59
Reorder Point
Inventory level at which a new order should be placed
60
Average Demand
Mean demand over a given time period
61
Demand Variability
Fluctuation of demand around the average
62
Variance
Measure of dispersion as the average squared deviation
63
Standard Deviation (σ)
Measure of typical deviation from the average
64
Normal Distribution
Symmetrical bell-shaped distribution of demand
65
Service Level
Probability of meeting customer demand without stockout
66
Safety Stock
Extra inventory held to protect against demand variability
67
Safety Factor
Number of standard deviations required for a desired service level
68
Supply Chain Structure
The network of suppliers, manufacturers, distributors, and customers involved in producing and delivering a product
69
Material Flow
Movement of raw materials, components, and finished goods through the supply chain
70
Information Flow
Exchange of data such as demand, production schedules, and inventory levels
71
Finance Flow
Movement of money, credit, and payment terms between supply chain partners
72
Cost–Benefit Analysis (CBA)
A method to compare total expected costs with total expected benefits of a decision
73
Fixed Costs
Costs that do not change with production volume
74
Variable Costs
Costs that change with production volume
75
Total Cost (TC)
The sum of fixed and variable costs
76
Break-Even Point (BEP)
The production level where total revenue equals total cost
77
Contribution Margin
Selling price per unit minus variable cost per unit
78
Payback Period
Time required for an investment to recover its initial cost
79
Return on Investment (ROI)
Measures profitability of an investment over its lifetime
80
Net Present Value (NPV)
Present value of future cash flows minus initial investment
81
Internal Rate of Return (IRR)
Discount rate that makes NPV equal zero
82
Make-or-Buy Decision
Choosing whether to produce a component internally or outsource it
83
Vertical Integration
A strategy where a company controls multiple stages of the supply chain
84
Total Cost of Ownership (TCO)
All direct and indirect costs across a product’s lifecycle
85
Decision Matrix
A tool that scores alternatives based on weighted criteria
86
Risk Assessment
Identifying and evaluating potential disruptions or uncertainties
87
Descriptive Analytics
Analysis that explains what happened using historical data
88
Diagnostic Analytics
Analysis that explains why something happened
89
Predictive Analytics
Forecasting what will happen using statistical models
90
Prescriptive Analytics
Recommending actions to achieve desired outcomes
91
Big Data
Large, complex datasets from diverse sources such as IoT or social media
92
ERP System
Integrated system managing core business processes like finance and inventory
93
WMS System
Software for controlling warehouse operations
94
TMS System
Software for planning and optimizing transportation
95
CRM System
Software for managing customer interactions and sales data
96
Data Cleaning
Removing errors, duplicates, and inconsistencies from datasets
97
Data Visualization
Presenting data graphically to support decision-making
98
DIKW Model
Framework converting data into information, knowledge, and wisdom
99
Demand Forecasting
Predicting future customer demand using time-series or regression
100
Naive Forecasting
Assumes next period’s demand equals the previous period’s demand
101
Moving Average
Forecast based on the average of the last n periods
102
Weighted Moving Average
Forecast where recent periods receive higher weights
103
Exponential Smoothing
Forecasting method giving decreasing weights to older data
104
MAD (Mean Absolute Deviation)
Average of absolute forecast errors
105
Forecast Bias
Indicates whether forecasts consistently over- or under-predict
106
Regression Analysis
Statistical method modeling relationships between variables
107
RFM Analysis
Customer segmentation based on recency, frequency, and monetary value
108
Pivot Tables
Excel tool for summarizing and analyzing large datasets
109
Business Intelligence Tools
Software for data analysis and reporting
110
Supply Chain
A network of organizations, people, activities, information, and resources involved in moving a product from supplier to customer
111
Supply Chain Structure
The arrangement of suppliers, manufacturers, warehouses, distribution centers, and customers
112
Supply Chain Processes
Key activities such as sourcing, production, transportation, inventory management, and distribution
113
Decision Making
The process of choosing the best alternative based on objectives, data, and constraints
114
Perception
How decision-makers interpret information, influencing judgment and choices
115
Management Science
The use of analytical and mathematical methods to support decision making
116
MADM (Multi Attribute Decision Making)
Decision-making method used to prioritize between alternatives based on multiple attributes (e.g. cost, quality, lead time)
117
MODM (Multi Objective Decision Making)
Decision-making method that optimizes more than one objective simultaneously using decision variables
118
SODM (Single Objective Decision Making)
Optimization with only one objective function (e.g. maximize profit or minimize cost)
119
Decision Variables
Unknown values that the decision maker must determine (e.g. quantity to produce or ship)
120
Objective Function
A mathematical expression defining what must be maximized or minimized
121
Constraints
Limitations or restrictions on resources such as labor, material, capacity, or demand
122
Feasible Region
The area that satisfies all constraints in a graphical solution
123
Controllable Variables
Variables that the decision maker can directly control
124
Uncontrollable Variables
External factors that cannot be controlled, such as demand or market conditions
125
Decision Making under Certainty
All parameters and outcomes are known
126
Decision Making under Uncertainty
Outcomes are unknown and probabilities are not available
127
Decision Making under Risk
Outcomes are uncertain but probabilities are known
128
Decision Making in Conflict Situations
Decisions involving competition between multiple decision-makers (game theory)
129
Mathematical Modeling
Representing real-world decision problems using mathematical equations
130
Model Formulation
The process of translating a real problem into a mathematical model
131
Linear Programming (LP)
Optimization technique with linear objective functions and linear constraints
132
Non-Negativity Constraint
A condition stating decision variables cannot be negative
133
Graphical Method
A visual method for solving linear programming problems with two decision variables
134
Corner Point (Extreme Point)
Intersection points of constraints where optimal solutions are evaluated
135
Optimal Solution
The feasible solution that gives the best value of the objective function
136
Network Design
Optimization of flows between nodes such as factories, warehouses, and customers
137
Transportation Problem
A special LP model minimizing transportation cost while meeting supply and demand
GMM Astrid
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