Demand Supply Balancing
The process of identifying and measuring the gaps and
imbalances between demand and resources in order to determine
how to best resolve the variances through marketing, pricing,
packaging, warehousing, outsource plans or some other action
that will optimize service, flexibility, costs, assets (or
other supply chain inconsistencies) in an iterative and
collaborative environment.
Demand Time Fence (DTF)
1) That point in time inside of which the forecast is no
longer included in total demand and projected available
inventory calculations; inside this point, only customer
orders are considered. Beyond this point, total demand is a
combination of actual orders and forecasts, depending on the
forecast consumption technique chosen.
2) In some contexts, the demand time fence may correspond to
that point in the future inside which changes to the master
schedule must be approved by an authority higher than the
master scheduler. Note, however, that customer orders may
still be promised inside the demand time fence without higher
authority approval if there are quantities
available-to-promise (ATP). Beyond the demand time fence, the
master scheduler may change the MPS within the limits of
established rescheduling rules, without the approval of higher
authority. See: planning time fence, time fence.
Deming Circle
The concept of a continuously rotating wheel of
plan-do-check-action (PDCA) used to show the need for
interaction among market research, design, production, and
sales to improve quality. Also see: Plan-Do-Check-Action
Demographic Segmentation
In marketing, dividing potential markets by
characteristics of potential customers, such as age, sex,
income, and education.
Demurrage
The carrier charges and fees applied when rail freight
cars and ships are retained beyond a specified loading or
unloading time. Also see: Detention, Express Denied Party List
(DPL): A list of organizations that are unauthorized to submit
a bid for an activity or to receive a specific product. For
example, some countries have bans for certain products such as
weapons or sensitive technology.
Density
A physical characteristic of a commodity measuring its
mass per unit volume or pounds per cubic foot; an important
factor in rate making, since density affects the utilization
of a carrier’s vehicle.
Density Rate
A rate based upon the density and shipment weight
Deregulation
Revisions or complete elimination of economic regulations
controlling transportation. The Motor Carrier Act of 1980 and
the Staggers Act of 1980 revised the economic controls over
motor carriers and railroads, and the Airline Deregulation Act
of 1978 eliminated economic controls over air carriers.
Derived Demand: Demand for component products that
arises from the demand for final design products. For example,
the demand for steel is derived from the demand for
automobiles.
Destination-Enhanced Consolidation
Ganging of smaller shipments to cut cost, often as
directed by a system or via pooling with a third party
Detention
The carrier charges and fees applied when rail freight
cars and ships are retained beyond a specified loading or
unloading time.
Deterministic Models
Models where no uncertainty is included, e.g., inventory
models without safety stock considerations.
Differential
A discount offered by a carrier that faces a service time
disadvantage over a route.
Digital Signature
Electronically generated, digitized (as opposed to graphically
created) authorization that is uniquely linkable and traceable
to an empowered officer.
Direct Production Material
Material that is used in the manufacturing/content of a
product (example: Purchased parts, solder, SMT glues,
adhesives, mechanical parts etc. Bill-of-Materials parts,
etc.)
Direct Store Delivery (DSD)/ Door Delivery
Process of shipping direct from a manufacturer’s plant or
distribution center to the customer’s retail store, thus
bypassing the customer’s distribution center. Also called
Direct-to-Store Delivery
Discrete Available-to-Promise
A calculation based on the available-to-promise figure in
the master schedule. For the first period, the ATP is the sum
of the beginning inventory plus the MPS quantity minus backlog
for all periods until the item is master scheduled again. For
all other periods, if a quantity has been scheduled for that
time period then the ATP is this quantity minus all customer
commitments for this and other periods, until another quantity
is scheduled in the MPS. For those periods where the quantity
scheduled is zero, the ATP is zero (even if deliveries have
been promised). The promised customer commitments are
accumulated and shown in the period where the item was most
recently scheduled. Also see: Available-to-Promise
Discrete Manufacturing
Discrete manufacturing processes create products by
assembling unconnected distinct parts as in the production of
distinct items such as automobiles, appliances, or computers.
Discrete Order Picking
A method of picking orders in which the items on one order
are picked before the next order is picked.
Dispatching
The carrier activities involved with controlling
equipment; involves arranging for fuel, drivers, crews,
equipment, and terminal space.
Distributed Inventory
Inventory that is geographically dispersed. For example,
where a company maintains inventory in multiple distribution
centers to provide a higher level of customer service.
Distribution
Outbound logistics, from the end of the production line to
the end user. 1) The activities associated with the movement
of material, usually finished goods or service parts, from the
manufacturer to the customer. These activities encompass the
functions of transportation, warehousing, inventory control,
material handling, order administration, site and location
analysis, industrial packaging, data processing, and the
communications network necessary for effective management. It
includes all activities related to physical distribution, as
well as the return of goods to the manufacturer. In many
cases, this movement is made through one or more levels of
field warehouses. Synonym: Physical Distribution.
2) The systematic division of a whole into discrete parts
having distinctive characteristics.
Distribution Center (DC)
The warehouse facility which holds inventory from
manufacturing pending distribution to the appropriate stores.
Distribution Channel
One or more companies or individuals who participate in
the flow of goods and services from the manufacturer to the
final user or consumer.
Distribution On Demand (DOD)
The order fulfillment state a distribution operation
achieves when it can respond, closest to real time, to changes
in demand while shipping 100 percent customer compliant orders
at the least cost.
Distribution Planning
The planning activities associated with transportation,
warehousing, inventory levels, materials handling, order
administration, site and location planning, industrial
packaging, data processing, and communications networks to
support distribution.
Distribution Requirements Planning (DRP)
A system of determining demands for inventory at
distribution centers and consolidating demand information in
reverse as input to the production and materials system.
Distribution Resource Planning (DRP II)
The extension of distribution requirements planning into
the planning of the key resources contained in a distribution
system: warehouse space, workforce, money, trucks, freight
cars, etc.
Distribution warehouse
A warehouse that stores finished goods and from which
customer orders are assembled.
Dock-to-Stock A program by which specific quality and
packaging requirements are met before the product is released.
Pre-qualified product is shipped directly into the customer's
inventory. Dock-to-stock eliminates the costly handling of
components, specifically in receiving and inspection and
enables product to move directly into production.
Dock receipt
A receipt that indicates an export shipment has been
delivered to a steamship company by a domestic carrier.
Domestic trunk line carrier
An air carrier classification for carriers that operate
between major population centers. These carriers are now
classified as major carriers.
Dormant route
A route over which a carrier failed to provide service 5
days a week for 13 weeks out of a 26-week period.
Double bottoms
A motor carrier operation involving two trailers being
pulled by one tractor.
Double Order Point System A distribution inventory
management system that has two order points. The smallest
equals the original order point, which covers demand during
replenishment lead time. The second order point is the sum of
the first order point plus normal usage during manufacturing
lead time. It enables warehouses to forewarn manufacturing of
future replenishment orders.
Downstream
Referring to the demand side of the supply chain. One or
more companies or individuals who participate in the flow of
goods and services moving from the manufacturer to the final
user or consumer. Opposite of Upstream.
Drop Ship
To take the title of the product but not actually handle,
stock, or deliver it, e.g., to have one supplier ship directly
to another or to have a supplier ship directly to the buyer’s
customer.
Dual operation
A motor carrier that has both common and contract carrier
operating authority.
Dual rate system
An international water carrier pricing system where a
shipper signing an exclusive use agreement with the conference
pays a lower rate (10% to %15) than non-signing
|