Glossary
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P
Parent Part.
Any finished goods, end item, or part that is mixed, fabricated, assembled, stirred, or blended from one or more other components.
Pareto Principle.
The heuristic rule which states that where there is a large number of contributors to a result, the majority of the result is due to a minority of the contributors.. Sometimes known as the 80/20 rule) which states that, in many cases, approximately 80% of the turnover (stock etc.) can be ascribed to approximately 20% of the customers, articles or orders. The actual ratio in a particular case can be determined by ranking the customers and products etc. in order of magnitude and then calculating what percentage of the turnover (stock etc.) corresponds to 10%, 20% 30% etc. of the customer and products etc. The basis of ABC analysis.
Part Number.
A unique identification number allocated to a specific part either by the manufacturer or user of the part.
Perpetual Inventory System.
An inventory control system where a running record is kept of the amount of stock held for each item. Whenever an issue is made, the withdrawal is logged and the result compared with the re-order point for any necessary re-order action.
Periodic Inventory.
An inventory control system classification for independent demand items where the number of items held is reviewed at a fixed time interval and the size of any resultant order depends on the stock on hand at the time of the review.
Pick Face.
The primary location in a warehouse at which order picking, of less than pallet loads, is undertaken.
Picking List.
An output from an inventory control system designating those items, by part number, description and quantity, to be picked from stock to satisfy customer demand.
Pipeline Stocks.
The products which are currently being moved from one location to another.
Primary Freight (Strategy).
An initative driven by retailers to drive out transportation costs and to improve the efficiency within the primary segment of the supply chain. The retailer generally takes over the management of the primary (inbound) transport and deducts the cost of this transport from the supplier's invoice based on an agreed cost per pallet or case. See also Factory Gate Pricing.
Primary Transport.
The transport 'leg' from the Supplier to the Customer. Normally viewed as being from the supplier's distribution centre (DC) to the customer's DC. See also secondary transport.
Probabilistic (or Stochastic) Inventory Control.
Models An inventory control system where all the variables and parameters used are treated as random variables. It is assumed that the average demand for items is approximately constant over time and that it is possible to state the probability distribution of the demand, particularly during the lead time for replenishment.
Product Group.
See Family Group
Production Lead Time.
The time taken to manufacture or produce an item after an external order has been received until the item is available for packing.
Purchasing Price.
See Unit Cost
Pull System.
A system where orders for an end item are pulled through the facility to satisfy demand for the end item. An examples of pull system is the JIT Kanban process.
Purchasing Lead Time (PLT).
The length of time between the decision to purchase an item and its actual addition to stock.
Purchase Price.
See Unit Cost
Purchasing Lead Time (PLT).
The total length of time between the decision to purchase an item and its availability for dispatch from the supplier concerned (that is, the sum of the order lead-time, the production lead time and any time necessary for packing or preparation for dispatch of a specific order).
Push System.
A system where orders are issued for completion by specified due dates, based on estimated lead-times, or where the flow of material in a product structure is controlled and determined by the lower levels.
Put Away Rules.
The internal rules and procedures for positioning stock in a warehouse or store after goods inward processing.
Acronyms | 1-10 | A | B | C | D | E | F | G | H | I | J
K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
