Supply Chain Planning Glossary

In brief: This glossary defines 140 key terms used in supply chain planning, with the Turkish equivalent of each one. Every entry links to related terms, detailed guide pages and articles. For wider reading, see the Knowledge Center.

A

ABC-XYZ Analysis

Turkish: ABC-XYZ Analizi
Also known as: ABC Analysis

ABC-XYZ analysis classifies stock items along two axes. The ABC classes are based on an item's annual consumption value or revenue share, and the XYZ classes on how irregular, and therefore how predictable, its demand is. The resulting segments allow service levels, inventory policies and forecasting methods to be differentiated by item.

Related terms: Service Level, Safety Stock, Intermittent Demand
Further reading: Balancing Inventory Levels and Service Efficiency, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

Advanced Planning and Scheduling (APS)

Turkish: İleri Planlama ve Çizelgeleme (APS)
Also known as: Advanced Planning System

Advanced Planning and Scheduling (APS) is a planning system based on optimization and heuristic methods that produces feasible plans and schedules by considering capacity, material and priority constraints at the same time. It takes data from corporate transaction systems, runs scenarios and passes its output to execution systems. In this way it goes beyond calculations that assume unlimited capacity and delivers plans that can actually be executed.

Related terms: Enterprise Resource Planning (ERP), Manufacturing Execution System (MES), Detailed Scheduling, Theory of Constraints (TOC)
Further reading: From Planning to Detailed Scheduling, Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Allocation

Turkish: Tahsis (Allocation)
Also known as: Supply Allocation

Allocation is the sharing of constrained stock and capacity among customers, channels or locations according to predefined rules when demand exceeds available supply. It is needed in peak seasons and capacity-constrained periods. The rules take strategic priority, contracts and margin into account, and the executive S&OP meeting approves the decision.

Related terms: Sales and Operations Planning (S&OP), Sales and Operations Execution (S&OE), Bullwhip Effect
Further reading: How Sales and Operations Planning Aligns Business Goals, Balancing Demand and Supply: Coordinating Demand Planning and Supply Planning Processes

Artificial Intelligence and Machine Learning

Turkish: Yapay Zeka ve Makine Öğrenmesi
Also known as: AI and ML

Artificial intelligence and machine learning are methods that learn patterns from data to produce forecasts, classifications and recommendations. Machine learning is the branch of artificial intelligence that learns from data. In planning they are used for demand forecasting, separating promotion effects, updating lead time distributions and flagging unusual situations. The quality of results depends on data quality and on the planner's judgment.

Related terms: Demand Sensing, Digital Twin, Forecast Error
Further reading: Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

Autoregressive Models (ARIMA)

Turkish: Otoregresif Modeller (ARIMA)

Autoregressive models (ARIMA) are time series methods that model the relationships between past values of a series and its past errors. They work on a series made stationary, and differencing is applied when the series is not stationary. They can capture complex autocorrelation structures, but model setup requires expertise and automatic model selection reduces that burden.

Related terms: Stationarity, Exponential Smoothing, Seasonality
Further reading: Effective Demand Planning and Forecasting, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

Available-to-Promise (ATP)

Turkish: Söz Verilebilir Stok (ATP)
Also known as: Söz Verilebilir Stok

Available-to-Promise (ATP) is the quantity that remains after committed customer orders are deducted from on-hand stock and planned production and supply, and that can therefore be promised to a customer. The calculation is usually made over Master Production Schedule (MPS) periods, so each period has its own promisable quantity. Because ATP does not consider capacity limits, it is best used together with Capable-to-Promise (CTP) where resources are constrained.

Related terms: Available-to-Promise / Capable-to-Promise (ATP/CTP), Capable-to-Promise (CTP), Master Production Schedule (MPS), Time Fences
Further reading: Better Planning of Production Processes, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Available-to-Promise / Capable-to-Promise (ATP/CTP)

Turkish: Söz Verilebilir Stok ve Kapasite (ATP/CTP)

Available-to-Promise and Capable-to-Promise (ATP/CTP) provide the basis for order promising, that is, which quantity can be delivered to a customer on which date. ATP considers only on-hand stock and planned production, while CTP also checks capacity and material availability. This keeps order promises realistic and supports delivery reliability.

Related terms: Master Production Schedule (MPS), Time Fences, Advanced Planning and Scheduling (APS), Available-to-Promise (ATP), Capable-to-Promise (CTP)
Further reading: Better Planning of Production Processes, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

B

Baseline Demand

Turkish: Baz Talep
Also known as: Base Demand

Baseline demand is the usual level of sales for a product once the effects of promotions, price changes, stockouts and one-off events have been removed. The statistical forecast model produces this layer, and the plan is built on top of it. When the promotion effect is added as a separate layer, it becomes possible to measure which layer generates the error.

Related terms: Uplift, Campaign Library, Event
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation, Balancing Demand and Supply: Coordinating Demand Planning and Supply Planning Processes

Bill of Materials (BOM)

Turkish: Ürün Ağacı (BOM)
Also known as: BOM

The Bill of Materials (BOM) is a hierarchical list of the raw materials, semi-finished goods and components required to produce an item, with their quantities and levels. The calculation of dependent demand in material requirements planning (MRP) rests on this structure. Errors in the BOM flow directly into the plan, so its accuracy and currency should be checked regularly.

Related terms: Material Requirements Planning (MRP), Independent and Dependent Demand, Master Production Schedule (MPS)
Further reading: How to Plan Materials in Manufacturing?

Bullwhip Effect

Turkish: Kamçı Etkisi

The bullwhip effect is the amplification of small fluctuations in end-customer demand as they move upstream, from the retailer to the distributor, the manufacturer and the supplier. Order batching, promotion loading, forecast updating and lack of information all contribute to it. Sharing demand information along the chain and planning jointly are the main ways to reduce it.

Related terms: Collaborative Planning, Forecasting and Replenishment (CPFR), Demand Sensing, Electronic Data Interchange (EDI)
Further reading: Supply Chain Management Explained, Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics, Balancing Demand and Supply: Coordinating Demand Planning and Supply Planning Processes

Business Intelligence (BI)

Turkish: İş Zekası (BI)

Business intelligence is the analytics layer that combines data from different sources and presents it to decision makers through dashboards and reports. In planning, error heat maps, forecast-versus-actual charts per series and exception lists of items that exceed a threshold are shown in this layer. Attention then goes only to the items that need action among thousands.

Related terms: Data Warehouse, Forecast Error, Supply Chain Control Tower
Further reading: Effective Demand Planning and Forecasting, Forecast Errors and Bias: How Are They Measured and Interpreted?, Total Cost of Ownership (TCO) in Purchasing: Supplier Selection and Green Procurement, Balancing Demand and Supply: Coordinating Demand Planning and Supply Planning Processes, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

C

Campaign Library

Turkish: Kampanya Kütüphanesi
Also known as: Promotion Library

A campaign library is a structured record of every past and planned campaign: its type, mechanic (discount rate, multi-buy, display), channel, duration and realized net incremental sales. Promotion impact models and forecasts derived from similar campaigns draw on this record. The quality of the library limits the accuracy of campaign forecasts.

Related terms: Event History, Pull-forward, Cannibalization
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation

Campaign Planning

Turkish: Kampanya Planlama
Also known as: Production Campaign Planning

Campaign planning, used in process industries, plans for the same product or product family to be produced in consecutive batches over an uninterrupted period. The aim is to minimize the cleaning and setup time spent on product changeovers and the losses they cause. Campaign length and product sequence are decided by weighing changeover times, shelf life, inventory and capacity together.

Related terms: Setup Time, Detailed Scheduling, Advanced Planning and Scheduling (APS)
Further reading: From Planning to Detailed Scheduling, Campaign Planning and Changeover Times in the Process Industry

Cannibalization

Turkish: Kanibalizasyon

Cannibalization occurs when the sales of one product rise by taking share from another product of the same brand or category. Because the promoted product reduces the sales of other products, the category total does not grow as much as the product total. If cannibalization is ignored when promotion impact is forecast, the promoted item may be overstocked while other items run short.

Related terms: Demand Planning, Demand Sensing
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation, Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics

Capable-to-Promise (CTP)

Turkish: Kapasite Dahil Söz Verilebilirlik (CTP)
Also known as: Kapasite Dahil Söz Verilebilirlik

Capable-to-Promise (CTP) is an approach to promising delivery to a customer that considers not only on-hand stock and planned production, but also capacity and material availability. For an item that is not in stock or not yet planned, it calculates when the resources will be free and sets a realistic delivery date. Order promises become more reliable, but the calculation requires current capacity and material data.

Related terms: Available-to-Promise (ATP), Available-to-Promise / Capable-to-Promise (ATP/CTP), Rough-Cut Capacity Planning (RCCP), Advanced Planning and Scheduling (APS)
Further reading: Better Planning of Production Processes, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Capacity Requirements Planning (CRP)

Turkish: Kapasite İhtiyaç Planlama (CRP)

Capacity Requirements Planning (CRP) calculates, period by period and in detail, the load that planned production orders place on each work centre, based on routings and processing times. It is more detailed than a rough-cut check and uses the results of material requirements planning. Overloaded resources are identified so that order dates, shifts or subcontracting can be reviewed.

Related terms: Rough-Cut Capacity Planning (RCCP), Material Requirements Planning (MRP), Detailed Scheduling
Further reading: Better Planning of Production Processes

Carbon Border Adjustment Mechanism (CBAM)

Turkish: Sınırda Karbon Düzenleme Mekanizması (SKDM)

The Carbon Border Adjustment Mechanism (CBAM) is a regulation that places a financial obligation on importers for the carbon emissions generated in the production of certain products imported into the European Union. Its purpose is to level the carbon cost difference between producers inside the Union and importers from outside. Exporting companies need to monitor their emissions data and reflect carbon cost in supply chain plans.

Related terms: Scope 3 Emissions, Total Cost of Ownership (TCO)
Further reading: Supply Chain Management Explained, Sustainability in the Supply Chain: Scope 3 Emissions, CBAM, and Their Effects on Planning

Changeover Matrix

Turkish: Geçiş Matrisi
Also known as: Setup Matrix, Sequence-Dependent Setup Matrix

A changeover matrix is a table showing the time and cost of changing between the products made on a line, by direction. In process industries, changing from light to dark may be short while the reverse may need long cleaning, so changeover time depends on sequence. The product wheel and campaign sequence are built from this matrix. The matrix should be kept current with measured actual changeover times.

Related terms: Setup Time, Product Wheel, Detailed Scheduling
Further reading: Better Planning of Production Processes, Campaign Planning and Changeover Times in the Process Industry

Channel Loading

Turkish: Kanal Stoklaması
Also known as: Channel Stocking

Channel loading occurs when shipments to distributors, dealers and traditional trade ahead of a promotion or season reach the channel before consumers buy. Sell-in looks higher than sell-out in this period, and orders fall afterwards. Planners should track the timing gap between the two and keep channel inventory visible.

Related terms: Sell-in, Sell-out, Pull-forward
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation, Balancing Demand and Supply: Coordinating Demand Planning and Supply Planning Processes

Chase, Level and Hybrid Production

Turkish: Talebi Takip, Seviyeli ve Karma Üretim
Also known as: Production Leveling Strategies

When peak demand exceeds normal capacity there are three basic approaches. With the chase approach production is matched to demand and capacity is changed continuously. With level production the plant runs at a steady rate and surplus goes into inventory. The hybrid approach keeps base production level and uses limited extra capacity and pre-build at the peak. The choice is made on total cost.

Related terms: Pre-build Inventory, ABC-XYZ Analysis
Further reading: Better Planning of Production Processes, Balancing Demand and Supply: Coordinating Demand Planning and Supply Planning Processes

Collaborative Planning, Forecasting and Replenishment (CPFR)

Turkish: İşbirlikçi Planlama (CPFR)

Collaborative Planning, Forecasting and Replenishment (CPFR) is a process in which a supplier and a customer, for example a manufacturer and a retailer, prepare forecast, promotion and replenishment plans jointly. The parties share information such as point-of-sale data, inventory and promotion calendars, and resolve forecast differences together. The aim is to reduce demand uncertainty and inventory swings.

Related terms: Demand Planning, Bullwhip Effect, Electronic Data Interchange (EDI), Demand Sensing
Further reading: Supply Chain Management Explained, Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics

Computer Vision

Turkish: Bilgisayarlı Görü

Computer vision is an artificial intelligence application that extracts information such as shelf gaps, planogram compliance or item counts from camera images. In retail, it detects shelf gaps and planogram deviations and makes visible the cases where the system shows stock but the product is not on the shelf. Shelf availability is then measured faster and can be linked to replenishment or shelf-filling decisions.

Related terms: Artificial Intelligence and Machine Learning, On-Shelf Availability, Planogram
Further reading: Supply Chain Management Explained, Store-Level Replenishment and Inventory Planning in Retail

Computerized Maintenance Management System (CMMS)

Turkish: Bakım Yönetim Sistemi (CMMS)

A computerized maintenance management system records maintenance work orders, equipment history and the parts used in maintenance. As the source of time-between-failure and part consumption data, it is a core input for forecasting spare parts demand from usage and maintenance. Complete records also determine the accuracy of predictive maintenance models.

Related terms: Predictive Maintenance, Enterprise Resource Planning (ERP), Installed Base
Further reading: Better Planning of Production Processes, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

Control Group Comparison

Turkish: Kontrol Grubu Karşılaştırması
Also known as: A/B Test, Difference-in-Differences

Control group comparison measures the effect of a campaign by comparing stores, customers or regions where it ran with similar units where it did not. Taking the difference of the before-and-after changes (difference-in-differences) removes seasonal and general effects. It is the most reliable way to show that the campaign itself created the effect.

Related terms: Uplift, Baseline Demand, Price Elasticity
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation

Corporate Sustainability Reporting Directive (CSRD)

Turkish: Kurumsal Sürdürülebilirlik Raporlaması (CSRD)

The Corporate Sustainability Reporting Directive (CSRD) requires companies of a certain size in the European Union to report environmental, social and governance information in a standard format. With the 2026 Omnibus I act, its scope was limited to companies with more than 1,000 employees on average and net turnover above 450 million euros. Suppliers outside the scope may decline information requests that exceed the voluntary standard.

Related terms: Scope 3 Emissions, Carbon Border Adjustment Mechanism (CBAM), Greenhouse Gas Protocol (GHG Protocol)
Further reading: Supply Chain Management Explained, Sustainability in the Supply Chain: Scope 3 Emissions, CBAM, and Their Effects on Planning

Croston's Method

Turkish: Croston Yöntemi
Also known as: Syntetos-Boylan Approximation

Croston's method is a forecasting method for intermittent series where demand is zero for many periods and then arrives in variable quantities. It forecasts the demand size and the interval between demands separately using exponential smoothing. The Syntetos-Boylan correction, which reduces its upward bias, is widely used, and accuracy is judged by absolute error or service level instead of percentage error.

Related terms: Intermittent Demand, Forecast Error, Service Level
Further reading: Effective Demand Planning and Forecasting, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

Cumulative Lead Time

Turkish: Kümülatif Tedarik Süresi
Also known as: Cumulative Lead Time (CLT), Stacked Lead Time

Cumulative lead time is the total time from procuring raw material to completing the finished product along the longest path of its bill of materials. It shows the longest period the product would need to reach delivery if everything started from scratch with no stock. The planning time fence length is usually derived from it and is recalculated when the time changes.

Related terms: Lead Time, Time Fences, Bill of Materials (BOM)
Further reading: Better Planning of Production Processes, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Cycle Counting

Turkish: Dönemsel Sayım (Cycle Counting)
Also known as: Perpetual Inventory Counting

Cycle counting means counting items in rotation and in part throughout the year instead of shutting down the whole warehouse for one annual count. Valuable and fast-moving items are counted more often. The aim is not only to find the difference but to remove its cause and raise inventory record accuracy. Accurate stock records are a basic condition for reliable planning calculations.

Related terms: Safety Stock, Bill of Materials (BOM)
Further reading: Balancing Inventory Levels and Service Efficiency, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Cycle Service Level

Turkish: Döngü Servis Seviyesi
Also known as: Type 1 Service Level

Cycle service level is the probability of not running out of stock during a replenishment cycle. A value of 95 percent means a short stockout may occur in one cycle out of twenty. It does not show how much of the demand is met, so it should not be confused with fill rate. The z value in safety stock formulas depends directly on this measure, and required stock rises sharply as the target increases.

Related terms: Service Level, Fill Rate, Safety Stock
Further reading: Balancing Inventory Levels and Service Efficiency, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

D

Data Warehouse

Turkish: Veri Ambarı

A data warehouse is an analytical database that stores data from the enterprise resource planning (ERP) system, point of sale, shipments and other source systems in a single consistent structure. In planning, forecast versions need to be stored as snapshots for different lags, because systems that keep only the latest forecast cannot calculate past error afterwards. Measurement is thus done from one source of truth.

Related terms: Enterprise Resource Planning (ERP), Business Intelligence (BI), Forecast Error
Further reading: Effective Demand Planning and Forecasting, Forecast Errors and Bias: How Are They Measured and Interpreted?, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

Demand Driven MRP (DDMRP)

Turkish: Talep Güdümlü Malzeme İhtiyaç Planlaması (DDMRP)

Demand Driven MRP (DDMRP) is a planning method that places buffer stocks at strategic points in the bill of materials and triggers replenishment according to actual demand. It aims to limit the propagation of demand variability along the chain and can be used alongside or instead of traditional MRP.

Related terms: Material Requirements Planning (MRP), Safety Stock, Bullwhip Effect
Further reading: How to Plan Materials in Manufacturing?

Demand Planning

Turkish: Talep Planlama
Also known as: Demand Forecasting and Planning

Demand Planning is the process of combining past sales, market knowledge and commercial plans to forecast future demand and agree on a single demand plan. Statistical methods and the views of sales and marketing are assessed together, and the plan is expressed by product, customer and time level. Its output is the starting input for production, purchasing and inventory decisions.

Related terms: Forecast Error, Seasonality, Demand Sensing, Sales and Operations Planning (S&OP)
Further reading: Effective Demand Planning and Forecasting, Forecast Errors and Bias: How Are They Measured and Interpreted?, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

Demand Sensing

Turkish: Talep Algılama (Demand Sensing)

Demand sensing is an approach that quickly feeds current signals, such as point-of-sale data, orders and external data, into the short-term forecast. The forecast is updated daily or weekly, and replenishment and distribution decisions are steered by the new information. It does not replace the medium-term demand plan but complements it in the short term.

Related terms: Sales and Operations Execution (S&OE), Demand Planning, Supply Chain Control Tower, Artificial Intelligence and Machine Learning
Further reading: Effective Demand Planning and Forecasting, Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation

Detailed Scheduling

Turkish: Detay Çizelgeleme
Also known as: Finite Capacity Scheduling

Detailed Scheduling is the most detailed level of planning, deciding on which machine, in what sequence and at which start and end times each job order is processed. Capacity, material availability, setup times and due dates are considered together. The result is usually shown as a job-based or machine-based Gantt chart and guides daily execution on the shop floor.

Related terms: Setup Time, Theory of Constraints (TOC), Advanced Planning and Scheduling (APS), Manufacturing Execution System (MES)
Further reading: From Planning to Detailed Scheduling, Campaign Planning and Changeover Times in the Process Industry

Digital Twin

Turkish: Dijital İkiz
Also known as: Digital Twins

A digital twin is a virtual model of a factory, a production line or a supply network that is kept up to date with data. It is fed by data from the real system and allows scenarios to be tested without affecting the physical system. In planning, alternatives for capacity, product sequence and network design are compared on this model.

Related terms: Advanced Planning and Scheduling (APS), Internet of Things (IoT), Artificial Intelligence and Machine Learning
Further reading: Campaign Planning and Changeover Times in the Process Industry

Display Stock

Turkish: Teşhir Stoğu
Also known as: Presentation Stock, Shelf Minimum

Display stock is the minimum quantity that must be kept in a store so that the shelf looks full and attractive. It is a constraint independent of the sales forecast and is set by the number and depth of shelf facings. For slow-selling items it can make up most of the stock. It should not be confused with safety stock and should be added to the replenishment calculation as a separate constraint.

Related terms: Safety Stock, Planogram, On-Shelf Availability
Further reading: Balancing Inventory Levels and Service Efficiency, Store-Level Replenishment and Inventory Planning in Retail

Distribution Requirements Planning (DRP)

Turkish: Dağıtım İhtiyaç Planlama (DRP)

Distribution Requirements Planning (DRP) calculates the replenishment needs of nodes in a distribution network, such as central warehouses, regional warehouses and points of sale, spread over time according to forecast demand and available stock. It applies the logic of material requirements planning to the distribution network. Its output sets the timing of transfers between warehouses and of production or purchasing needs.

Related terms: Material Requirements Planning (MRP), Lead Time, Multi-Echelon Inventory Optimization (MEIO)
Further reading: Streamlining Logistics and Distribution, Store-Level Replenishment and Inventory Planning in Retail

E

e-Procurement

Turkish: Elektronik Satın Alma (e-Satın Alma)
Also known as: Electronic Procurement

E-procurement is a setup in which purchase requests, quotation collection, approval and ordering run in a traceable digital workflow. Because every step is recorded, quote comparison can be standardized with total cost of ownership criteria. Order and delivery records accumulate automatically and make it easier to keep the supplier scorecard current.

Related terms: Electronic Data Interchange (EDI), Total Cost of Ownership (TCO), Supplier Scorecard
Further reading: Supply Chain Management Explained, Total Cost of Ownership (TCO) in Purchasing: Supplier Selection and Green Procurement

Economic Lot Scheduling Problem (ELSP)

Turkish: Ekonomik Parti Çizelgeleme Problemi (ELSP)

The economic lot scheduling problem (ELSP) determines in what sequence and with what cycle length several products are produced on a single line, based on the balance between changeover cost and inventory holding cost. A shorter cycle lowers stock but increases changeovers. It is the adaptation of economic order quantity logic to multi-product lines that share one capacity.

Related terms: Product Wheel, Economic Order Quantity (EOQ), Setup Time
Further reading: Better Planning of Production Processes, Campaign Planning and Changeover Times in the Process Industry

Economic Order Quantity (EOQ)

Turkish: Ekonomik Sipariş Miktarı (EOQ)

Economic Order Quantity (EOQ) is the order quantity that minimizes the sum of ordering cost and inventory holding cost. It rests on the assumption that demand is roughly constant and supply conditions are stable. Large orders reduce the number of orders but raise holding cost, and the method shows the balance between these two costs numerically.

Related terms: Reorder Point (ROP), Safety Stock
Further reading: Balancing Inventory Levels and Service Efficiency

Electronic Data Interchange (EDI)

Turkish: Elektronik Veri Değişimi (EDI)

Electronic Data Interchange (EDI) is the transfer of documents such as orders, call-offs, shipping notices and invoices between companies in a standard format and without human intervention. It speeds up the flow of information between suppliers, customers and logistics providers and reduces errors caused by manual data entry. A regular, automatic data flow helps planning rely on current order and stock information.

Related terms: Enterprise Resource Planning (ERP), Collaborative Planning, Forecasting and Replenishment (CPFR), Supply Chain Control Tower
Further reading: Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics

Embedded Emissions

Turkish: Gömülü Emisyon
Also known as: Embodied Emissions

Embedded emissions are the greenhouse gas emissions released during the production of a product and treated as carried by that product. Under the Carbon Border Adjustment Mechanism, these emissions are declared for cement, iron and steel, aluminium, fertilizer, hydrogen and electricity products imported into the European Union, and certificates are obtained for them. If verifiable actual emission data cannot be supplied, default values may be used.

Related terms: Carbon Border Adjustment Mechanism (CBAM), Greenhouse Gas Protocol (GHG Protocol), Scope 3 Emissions
Further reading: Supply Chain Management Explained, Sustainability in the Supply Chain: Scope 3 Emissions, CBAM, and Their Effects on Planning

Enterprise Resource Planning (ERP)

Turkish: Kurumsal Kaynak Planlama (ERP)

Enterprise Resource Planning (ERP) is a corporate transaction system that records orders, inventory, purchasing, production and finance transactions in a shared database. It is the master data and transaction source for planning, holding information such as the bill of materials, lead times and stock balances. The recommendations produced by planning systems are mostly converted into orders within it.

Related terms: Advanced Planning and Scheduling (APS), Manufacturing Execution System (MES), Warehouse Management System (WMS), Material Requirements Planning (MRP)
Further reading: 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

Event

Turkish: Olay

An event is any dated occurrence that disturbs the normal course of a demand series. Promotions, stock-outs, price changes, religious holidays, one-off large orders and system errors are typical examples. When events are flagged in the series, the statistical forecasting model does not learn these periods as normal demand, so baseline demand can be estimated more cleanly.

Related terms: Event History, Campaign Library, Seasonality, Stationarity
Further reading: Effective Demand Planning and Forecasting, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation

Event History

Turkish: Olaylar Geçmişi
Also known as: Event Log

Event history is the record of past events such as promotions, stock-outs, price changes and holidays, kept together with their start and end dates, type, scope and effect on demand. The forecasting model uses this record to link fluctuations in the historical series to their causes. When the record is incomplete, the effect of an event is wrongly assigned to baseline demand or to seasonality.

Related terms: Event, Campaign Library, Forecast Error
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

Exponential Smoothing

Turkish: Üstel Düzeltme
Also known as: Simple Exponential Smoothing

Exponential smoothing is a time series method that calculates the new forecast as a weighted combination of the previous forecast and the latest actual. A larger smoothing coefficient reacts faster to recent data, while a smaller one gives a more stable forecast. The simple form suits stationary series, while the trend and seasonal forms are covered by the Holt and Holt-Winters methods.

Related terms: Holt-Winters Method, Stationarity, Trend
Further reading: Effective Demand Planning and Forecasting, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

F

Fill Rate

Turkish: Doluluk Oranı
Also known as: Item Fill Rate

Fill rate is the share of total demand that is met directly from stock. Cycle service level only looks at whether a stockout occurred, whereas fill rate also takes into account how large the unmet quantity was. Because it reflects the customer experience more directly, it is often preferred when service targets are defined.

Related terms: Service Level, Safety Stock
Further reading: Balancing Inventory Levels and Service Efficiency, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

Finite Capacity Scheduling

Turkish: Sonlu Kapasiteli Çizelgeleme
Also known as: Finite Scheduling

Finite capacity scheduling sets the start and end times of jobs while respecting the real capacity limits of resources such as machines, labor and vehicles. Unlike methods that assume unlimited capacity, it produces feasible and realistic schedules. It is one of the core functions of advanced planning and scheduling (APS) systems.

Related terms: Detailed Scheduling, Advanced Planning and Scheduling (APS), Gantt Chart, Heuristics
Further reading: From Planning to Detailed Scheduling

Firm Planned Order

Turkish: Kesinleşmiş Planlı Sipariş

A firm planned order is an order suggested by material requirements planning and then frozen by the planner. The system does not change its quantity or date automatically in later runs. It is used to protect work inside the time fences and limits the spread of plan changes to lower levels, which would otherwise create nervousness. Releasing the firm status should require authorized approval.

Related terms: Master Production Schedule (MPS), Material Requirements Planning (MRP), Time Fences
Further reading: Better Planning of Production Processes, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Forecast Bias

Turkish: Yanlılık (Bias)
Also known as: Bias

Forecast bias is the tendency of forecast errors to accumulate in the same direction over time, so that the forecast is consistently too high or consistently too low. Even when period errors offset each other, bias shows up as excess inventory or unmet demand. Monitoring bias helps to detect systematic optimism or caution in sales and marketing adjustments.

Related terms: Forecast Error, Mean Absolute Percentage Error (MAPE), Forecast Value Added (FVA)
Further reading: Effective Demand Planning and Forecasting, Forecast Errors and Bias: How Are They Measured and Interpreted?, Which Decision in Which Meeting in the S&OP Cycle? Calendar, Decision Logic, and Scenarios

Forecast Error

Turkish: Tahmin Sapması
Also known as: Forecast Deviation

Forecast error is the difference between the demand that actually occurred in a period and the forecast made for that period, calculated as Error = Actual - Forecast. A positive error shows that the forecast was too low, and a negative error shows that it was too high. Error is the basic input for accuracy measures, safety stock calculation and the improvement of forecasting methods.

Related terms: Forecast Bias, Mean Absolute Percentage Error (MAPE), Forecast Value Added (FVA), Safety Stock
Further reading: Effective Demand Planning and Forecasting, Forecast Errors and Bias: How Are They Measured and Interpreted?

Forecast Value Added (FVA)

Turkish: Eklenen Tahmin Değeri (FVA)

Forecast Value Added (FVA) measures how much each step of the forecasting process contributes to accuracy, for example the adjustments that sales and marketing make on top of the statistical forecast. The output of a step is compared with the output of the previous step or with a simple reference method. Interventions that add no value or reduce accuracy can be identified, and the process can be simplified.

Related terms: Forecast Error, Forecast Bias, Demand Planning
Further reading: Effective Demand Planning and Forecasting, Which Decision in Which Meeting in the S&OP Cycle? Calendar, Decision Logic, and Scenarios, Forecast Errors and Bias: How Are They Measured and Interpreted?

G

Gantt Chart

Turkish: Gantt Şeması

A Gantt chart is a schedule visual that shows the start and end times of jobs on resources or machines as horizontal bars. The results of detailed scheduling are usually followed on such a chart, where overlaps, gaps and delays become visible. It provides a common language for communicating the plan to the shop floor.

Related terms: Detailed Scheduling, Finite Capacity Scheduling, Capacity Requirements Planning (CRP)
Further reading: From Planning to Detailed Scheduling

Generative AI (GenAI)

Turkish: Üretken Yapay Zeka (GenAI)

Generative AI is a type of artificial intelligence that uses large language models to draft text, summaries and explanations in natural language. In planning it can turn error findings into a readable assessment or a draft post-campaign report. Verifying the reasoning and making the decision remain the planner's responsibility, and its output should be monitored with the same metrics.

Related terms: Artificial Intelligence and Machine Learning, Forecast Error, Business Intelligence (BI)
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation, Forecast Errors and Bias: How Are They Measured and Interpreted?, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

Green Procurement

Turkish: Yeşil Satın Alma
Also known as: Sustainable Procurement

Green procurement builds environmental and social criteria such as product carbon footprint, supplier emission data, recycled content, packaging and transport into supplier selection. The sustainable procurement guidance standard (ISO 20400) recommends embedding these criteria in every stage of purchasing rather than adding them at the end. The criteria can be monetized with an internal carbon price or assessed with weighted scoring.

Related terms: Total Cost of Ownership (TCO), Scope 3 Emissions, Internal Carbon Price
Further reading: Supply Chain Management Explained, Total Cost of Ownership (TCO) in Purchasing: Supplier Selection and Green Procurement

Greenhouse Gas Protocol (GHG Protocol)

Turkish: Sera Gazı Protokolü (GHG Protocol)
Also known as: GHG Protocol

The Greenhouse Gas Protocol (GHG Protocol) is the most widely used standard for measuring and reporting corporate greenhouse gas emissions. It divides emissions into scope 1 for direct emissions, scope 2 for purchased energy, and scope 3 for all other emissions in the value chain. Scope 3 is split into fifteen categories, and some of them relate directly to planning decisions.

Related terms: Scope 3 Emissions, Carbon Border Adjustment Mechanism (CBAM), Embedded Emissions
Further reading: Supply Chain Management Explained, Sustainability in the Supply Chain: Scope 3 Emissions, CBAM, and Their Effects on Planning

H

Heuristics

Turkish: Sezgisel Yöntemler
Also known as: Heuristic Methods

Heuristics are practical approaches that aim to produce solutions of acceptable quality in reasonable time, without guaranteeing the optimal one. Because the solution time of exact methods grows quickly with problem size, heuristics are often preferred for problems such as scheduling and routing. Priority rules and genetic algorithms belong to this group.

Related terms: Optimization, Detailed Scheduling, Finite Capacity Scheduling
Further reading: What is Optimization?

Holt-Winters Method

Turkish: Holt-Winters Yöntemi

The Holt-Winters method is an exponential smoothing method that updates the level, trend and seasonal components together. The seasonal component can be defined as additive or multiplicative depending on the size of the fluctuation. It is a common starting method for demand series with trend and seasonality, and it needs at least two full seasons of data for a reliable seasonal index.

Related terms: Exponential Smoothing, Seasonality, Trend
Further reading: Effective Demand Planning and Forecasting, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

Hybrid Planning

Turkish: Hibrit Planlama
Also known as: Push-Pull Planning

Hybrid planning means using the push logic of material requirements planning and the pull logic of kanban together in the same plant. Items with long lead times, irregular demand or made to order are managed with material requirements planning, and repetitive items with stable demand with kanban. The decision is made item by item, not for the whole plant. Kanban works only if the production plan is leveled.

Related terms: Pull System, Material Requirements Planning (MRP), Kanban
Further reading: Better Planning of Production Processes, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

I

Independent and Dependent Demand

Turkish: Bağımsız ve Bağımlı Talep

Independent demand is the demand customers place on finished products and must be forecast. Dependent demand is the requirement for raw materials, semi-finished goods and components, calculated from the production plan through the bill of materials. Dependent demand is not forecast but calculated. This distinction is the foundation of material requirements planning (MRP).

Related terms: Material Requirements Planning (MRP), Bill of Materials (BOM), Safety Stock
Further reading: How to Plan Materials in Manufacturing?

Installed Base

Turkish: Kurulu Taban

The installed base is the total number of systems or equipment units in service in the field. In defense, aerospace and durable goods, spare parts demand is derived from the installed base: the number of systems, usage hours and part failure rate are multiplied to find the expected number of failures. Calculating demand from usage instead of past sales makes intermittent demand plannable.

Related terms: Intermittent Demand, Repairable Part, VED Analysis
Further reading: Balancing Inventory Levels and Service Efficiency, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

Integrated Business Planning (IBP)

Turkish: Entegre İş Planlama (IBP)

Integrated Business Planning (IBP) extends Sales and Operations Planning by connecting it with financial planning, strategic objectives and scenario analysis. Its scope goes beyond operational alignment to cover revenue, profit and cash flow outcomes. Management evaluates the commercial impact of alternative scenarios on one model and makes resource and investment decisions accordingly.

Related terms: Sales and Operations Planning (S&OP), Sales and Operations Execution (S&OE), Demand Planning, Digital Twin
Further reading: How Sales and Operations Planning Aligns Business Goals, Which Decision in Which Meeting in the S&OP Cycle? Calendar, Decision Logic, and Scenarios

Intermittent Demand

Turkish: Aralıklı Talep
Also known as: Sporadic Demand

Intermittent demand is the demand pattern of items that have no demand in many periods and a variable quantity when demand does occur. It is common for spare parts and low-volume products. Because ordinary statistical methods fall short with this pattern, specialised approaches such as Croston's method and a separate inventory policy are used.

Related terms: Safety Stock, Service Level, Stationarity
Further reading: Balancing Inventory Levels and Service Efficiency, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

Internal Carbon Price

Turkish: İç Karbon Fiyatı
Also known as: Shadow Carbon Price

An internal carbon price is a per-ton emission charge that an organization sets for itself to make emissions visible in monetary terms in its decisions. Where cost and emissions conflict, for example in a slower but lower-emission transport mode, adding it to S&OP scenarios makes the options comparable and transparent for all parties.

Related terms: Green Procurement, Scope 3 Emissions, Carbon Border Adjustment Mechanism (CBAM)
Further reading: Supply Chain Management Explained, Total Cost of Ownership (TCO) in Purchasing: Supplier Selection and Green Procurement, Sustainability in the Supply Chain: Scope 3 Emissions, CBAM, and Their Effects on Planning

Internet of Things (IoT)

Turkish: Nesnelerin İnterneti (IoT)

The Internet of Things (IoT) is a structure in which sensors in machines, vehicles, warehouses and products transmit data automatically over a network. Location, temperature, status and consumption data are collected without human input. In the supply chain this data supports stock record accuracy, shipment tracking and equipment maintenance, which helps planning work closer to the real situation.

Related terms: Manufacturing Execution System (MES), Warehouse Management System (WMS), Digital Twin
Further reading: 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

Inventory Management

Turkish: Stok Yönetimi
Also known as: Inventory Management and Optimization

Inventory Management is the planning and control process that balances inventory investment and holding cost while protecting the service level. Decisions on which item to keep, at which location, in what quantity and when are made within it. Parameters such as safety stock, reorder point and order quantity are set by taking demand variability and lead time into account, and items are classified by importance and demand pattern so that they can be managed with different policies.

Related terms: Safety Stock, Reorder Point (ROP), Service Level, ABC-XYZ Analysis
Further reading: Balancing Inventory Levels and Service Efficiency

Inventory Turnover

Turkish: Stok Devir Hızı
Also known as: Stock Turnover

Inventory turnover is the cost of goods sold or consumption over a period divided by the average inventory value, showing how many times stock is renewed within that period. A high turnover indicates more efficient use of capital. However, raising turnover without regard to the service level may increase the risk of stockouts.

Related terms: ABC-XYZ Analysis, Service Level, Safety Stock
Further reading: Balancing Inventory Levels and Service Efficiency

J

Just-in-Time (JIT)

Turkish: Tam Zamanında Üretim (JIT)
Also known as: Just-in-Time Production

Just-in-Time (JIT) is an approach that aims to produce or supply materials and products only where, when and in the quantity they are needed. It is based on pull logic and seeks to reduce work-in-process inventory and waiting times. Its success depends on a stable production plan, short setup times and reliable suppliers.

Related terms: Kanban, Setup Time, Material Requirements Planning (MRP)
Further reading: Better Planning of Production Processes, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

K

Kanban

Turkish: Kanban

Kanban is a system of cards, containers or digital signals that triggers replenishment when consumption occurs in pull-based production. Each signal triggers the production or supply of only the quantity that was consumed. Production and inventory are therefore driven by actual consumption rather than by forecast, and the number of kanbans is calculated from the consumption rate and the lead time.

Related terms: Just-in-Time (JIT), Setup Time, Material Requirements Planning (MRP)
Further reading: Better Planning of Production Processes, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation

L

Last-Time Buy

Turkish: Son Alım (Last-Time Buy)
Also known as: Life-Time Buy

A last-time buy is the final purchase of a part, sized to the demand expected over the remaining life of the system, when the supplier is ending the product. The quantity is set by considering demand over the remaining life, expected repairs and the scrap rate. Over-buying leads to obsolete stock and under-buying to a part that cannot be found later, so the two costs are compared together.

Related terms: Obsolescence, Installed Base, Repairable Part
Further reading: Balancing Inventory Levels and Service Efficiency, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

Lead Time

Turkish: Tedarik Süresi
Also known as: Replenishment Lead Time

Lead time is the time from the moment an order is placed until the material is ready for use. It covers stages such as preparation at the supplier, transport, customs and goods receipt. As lead time gets longer and more variable, the required safety stock grows and the planning horizon has to be extended.

Related terms: Safety Stock, Reorder Point (ROP), Material Requirements Planning (MRP)
Further reading: Balancing Inventory Levels and Service Efficiency, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

Lean Production

Turkish: Yalın Üretim
Also known as: Lean Manufacturing, Toyota Production System

Lean production is a management approach that aims to speed up flow by eliminating activities that create no value for the customer, such as waiting, excess inventory, unnecessary transport, over-processing and defects. It is the general name of the Toyota Production System in international literature. The goal is not to keep machines running but to keep product flowing, with pull systems and continuous improvement as core principles.

Related terms: Pull System, Kanban, Value Stream Mapping (VSM)
Further reading: Better Planning of Production Processes, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation

Logistics Planning

Turkish: Lojistik Planlama

Logistics Planning is the process of planning storage, distribution and transportation flows against cost and service level targets. Warehouse and distribution network design, transport mode selection, vehicle loading and routing, and replenishment and delivery timing are its main topics. When carried out together with demand and inventory plans, it ensures that the product is in the right place at the right time at a low total logistics cost.

Related terms: Third-Party Logistics (3PL), Vehicle Routing, Transportation Management System (TMS), Supply Chain Control Tower
Further reading: Streamlining Logistics and Distribution

M

Make-to-Order (MTO)

Turkish: Siparişe Üretim (MTO)

Make-to-Order (MTO) is a production strategy in which production starts only after a customer order has been received. The inventory risk is low and the approach suits customer-specific products, but delivery lead time becomes longer because it depends on production and material lead times. Capacity and material planning must be done carefully so that order dates can be promised.

Related terms: Make-to-Stock (MTS), Lead Time, Available-to-Promise / Capable-to-Promise (ATP/CTP)
Further reading: Better Planning of Production Processes

Make-to-Stock (MTS)

Turkish: Stoğa Üretim (MTS)

Make-to-Stock (MTS) is a production strategy in which products are made according to the demand forecast and held in stock before customer orders arrive. Delivery lead time is short, but forecast error creates the risk of excess stock or stockouts. It is widely used for products with predictable demand, limited variety and high service level expectations.

Related terms: Make-to-Order (MTO), Master Production Schedule (MPS), Service Level
Further reading: Better Planning of Production Processes

Manufacturing Execution System (MES)

Turkish: Üretim Yönetim Sistemi / Üretim Yürütme Sistemi (MES)

A Manufacturing Execution System (MES) tracks shop-floor job orders, machine status, production quantities and scrap in near real time, and links the plan with actual production. Actual output, downtime and scrap information is fed back to the planning layer. As a result, the gap between plan and actual becomes measurable and schedules can be re-sequenced with current data.

Related terms: Advanced Planning and Scheduling (APS), Enterprise Resource Planning (ERP), Internet of Things (IoT)
Further reading: Better Planning of Production Processes, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Master Production Schedule (MPS)

Turkish: Üretim Planı (MPS)
Also known as: Master Schedule

The Master Production Schedule (MPS) is a time-phased plan showing which finished products will be produced, in what quantities and in which periods, based on the demand plan and on capacity and inventory targets. It is the main input of material requirements planning. Because changes flow into purchase and production orders, the near-term schedule is normally protected with time fences.

Related terms: Material Requirements Planning (MRP), Time Fences, Available-to-Promise / Capable-to-Promise (ATP/CTP), Rough-Cut Capacity Planning (RCCP), Production Planning
Further reading: Better Planning of Production Processes, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Material Requirements Planning (MRP)

Turkish: Malzeme İhtiyaç Planlama (MRP)

Material Requirements Planning (MRP) calculates which materials are needed, in what quantities and when, using the production plan, the bill of materials, current stock and lead times. The result is a set of suggested purchase and production orders. The accuracy of the calculation depends on how current the bill of materials, inventory records and lead time data are.

Related terms: Master Production Schedule (MPS), Capacity Requirements Planning (CRP), Lead Time, Distribution Requirements Planning (DRP)
Further reading: How to Plan Materials in Manufacturing?, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Materials Planning

Turkish: Malzeme Planlama
Also known as: Material Requirements Planning

Materials Planning is the process of calculating which materials are needed, in what quantity and when, based on the production plan, and turning the result into purchase and production orders. The calculation uses the bill of materials, on-hand stock, open orders and lead times together. It rests on the logic of material requirements planning (MRP) and aims to reduce the risk of both shortages and excess stock. The results are passed on to suppliers and the shop floor in advance.

Related terms: Material Requirements Planning (MRP), Bill of Materials (BOM), Lead Time, Master Production Schedule (MPS)
Further reading: How to Plan Materials in Manufacturing?

Mean Absolute Deviation (MAD)

Turkish: Mutlak Sapmaların Ortalaması (MAD)

Mean Absolute Deviation (MAD) is the average of the absolute values of the differences between forecast and actual, expressed in the product's own unit, such as pieces, cases or kilograms. It is an easy indicator for monitoring the accuracy of a single product. Because units differ, it is not suited to comparisons across products.

Related terms: Forecast Error, Mean Absolute Percentage Error (MAPE), Weighted Mean Absolute Percentage Error (WMAPE), Root Mean Squared Error (RMSE)
Further reading: Effective Demand Planning and Forecasting, Forecast Errors and Bias: How Are They Measured and Interpreted?

Mean Absolute Percentage Error (MAPE)

Turkish: Mutlak Sapma Yüzdeleri Ortalaması (MAPE)
Also known as: Mean Absolute Percent Error

Mean Absolute Percentage Error (MAPE) is the average of the percentages obtained by dividing the absolute error of each period by that period's actual value. Because it is independent of units, it makes it easy to compare the accuracy of different products and aggregation levels. It becomes very large for items whose actual values are close to zero, so weighted variants are often preferred.

Related terms: Forecast Error, Forecast Bias, Weighted Mean Absolute Percentage Error (WMAPE), Mean Absolute Deviation (MAD), Forecast Value Added (FVA)
Further reading: Effective Demand Planning and Forecasting, Forecast Errors and Bias: How Are They Measured and Interpreted?

MRP Nervousness

Turkish: MRP Sinirliliği (Nervousness)
Also known as: System Nervousness

MRP nervousness occurs when a small change in quantity or date in the production plan triggers many rescheduling messages for subassemblies, semi-finished goods and purchased materials. Planners cannot keep up with the messages, pressure on suppliers grows and urgent orders multiply. Time fences, firm planned orders, fixed lot rules and message thresholds are the main ways to reduce nervousness.

Related terms: Material Requirements Planning (MRP), Firm Planned Order, Time Fences
Further reading: Better Planning of Production Processes, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Multi-Echelon Inventory Optimization (MEIO)

Turkish: Çok Kademeli Stok Optimizasyonu (MEIO)

Multi-Echelon Inventory Optimization (MEIO) sets stock levels and decides where safety stock should be placed by considering all tiers of a distribution network together. Instead of optimizing each warehouse separately, it takes into account the points where uncertainty pools and evaluates total inventory and service level jointly. The aim is to reach the same service level with lower total stock.

Related terms: Safety Stock, Service Level, Distribution Requirements Planning (DRP)
Further reading: Balancing Inventory Levels and Service Efficiency, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach, Store-Level Replenishment and Inventory Planning in Retail

O

Obsolescence

Turkish: Eskime (Obsolescence)
Also known as: Obsolete Stock

Obsolescence is when stock becomes unusable because a part has been discontinued, replaced by a new model or has lost its demand. In defense and aerospace systems that serve for decades, electronic components can be discontinued much earlier than the system. Monitoring supplier end-of-life notices, last-time buys and alternative part work reduce the risk.

Related terms: Last-Time Buy, Installed Base, Product Lifecycle Management (PLM)
Further reading: Balancing Inventory Levels and Service Efficiency, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

On-Shelf Availability

Turkish: Raf Bulunurluğu (On-Shelf Availability)
Also known as: OSA, Shelf Availability

On-shelf availability is the share of times a customer finds a product on the shelf at the moment they want to buy it. If stock exists in the store but the product is not on the shelf, availability falls. It therefore measures the real shelf situation rather than the warehouse or store stock record. It is directly tied to lost sales and customer satisfaction. Record accuracy and shelf-filling discipline are its main drivers.

Related terms: Fill Rate, Service Level, Display Stock
Further reading: Balancing Inventory Levels and Service Efficiency, Store-Level Replenishment and Inventory Planning in Retail

Operational Availability

Turkish: Sistem Hazır Olma Oranı
Also known as: System Availability, System Readiness Rate

Operational availability is the ratio of systems that are ready for tasking at a given moment to all systems. It is the central goal of spare parts planning in defense and aviation. Unlike part-level service level, it looks at the share of systems that are out of service because of a missing part. Inventory investment is distributed to the parts and echelons that achieve this ratio at the lowest cost.

Related terms: Repair Pipeline Stock, Installed Base, VED Analysis
Further reading: Balancing Inventory Levels and Service Efficiency, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

Operations Research

Turkish: Yöneylem Araştırması
Also known as: Management Science

Operations research is the discipline that solves complex decision problems with mathematical models and analytical methods. Linear programming, integer programming, network models, queueing theory and simulation are among its main tools. In supply chain planning it is widely used for problems such as resource allocation, routing and scheduling.

Related terms: Optimization, Simulation, Heuristics
Further reading: What is Optimization?

Optimization

Turkish: Optimizasyon

Optimization is the systematic search for the decisions that best satisfy an objective function, such as cost, time or profit, under given constraints. Decision variables, constraints and the objective function are defined mathematically, and the solution is obtained from this model. The value of the result depends on how well the model represents the real system.

Related terms: Operations Research, Heuristics, Simulation
Further reading: What is Optimization?

Order-Up-To Policy

Turkish: Hedef Seviyeye Tamamlama (Order-Up-To)
Also known as: Base-Stock Policy

The order-up-to policy is a periodic review policy that orders enough at each review to raise the inventory position to a predetermined target level. The order quantity is the target level minus on-hand stock and orders in transit. The target level covers expected demand over the protection interval plus safety stock. It is widely used in store replenishment.

Related terms: Safety Stock, Protection Interval, Reorder Point (ROP)
Further reading: Balancing Inventory Levels and Service Efficiency, Store-Level Replenishment and Inventory Planning in Retail

P

Planning Hierarchy

Turkish: Planlama Hiyerarşisi
Also known as: Planning Levels

The planning hierarchy is the arrangement of strategic, tactical and operational plans as levels that feed one another. The higher-level plan sets constraints and targets for the lower level, while feedback from the lower level prompts a review of the higher plan. Consistency requires that all plans rest on the same assumptions.

Related terms: Sales and Operations Planning (S&OP), Master Production Schedule (MPS), Detailed Scheduling, Demand Planning
Further reading: What Is Planning in a Business?

Planogram

Turkish: Planogram
Also known as: Shelf Layout Plan

A planogram is a shelf layout plan showing where products sit on the shelf, with how many facings and in what order. Because the number and depth of facings determine display stock and the maximum quantity the shelf can hold, it is directly linked to replenishment parameters. When the planogram changes, replenishment parameters must be updated as well. Shelf availability and planogram compliance are monitored together.

Related terms: Display Stock, On-Shelf Availability
Further reading: Balancing Inventory Levels and Service Efficiency, Store-Level Replenishment and Inventory Planning in Retail

Point-of-Sale (POS) Data

Turkish: Satış Noktası Verisi (POS)
Also known as: POS Data, Checkout Data

Point-of-sale data is consumer sales data recorded at retail checkouts by product, store and time. Unlike sell-in data, it shows actual consumption, so it is used to correct the forecast in the first days of a campaign, steer store replenishment and support demand sensing. Data quality and how much is shared depend on collaboration with the retailer.

Related terms: Demand Sensing, Sell-out, On-Shelf Availability
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation, Store-Level Replenishment and Inventory Planning in Retail

Pre-build Inventory

Turkish: Ön Stok (Pre-build)
Also known as: Seasonal Build-up

Pre-build inventory is stock produced in idle capacity ahead of peak demand such as a season or campaign. It closes the capacity gap at the peak but carries storage, cash and obsolescence cost. It is therefore built for high-volume products with low forecast error and for common components, and its start date is calculated backwards from the peak.

Related terms: Chase, Level and Hybrid Production, Safety Stock, Sell-in
Further reading: Balancing Inventory Levels and Service Efficiency, Balancing Demand and Supply: Coordinating Demand Planning and Supply Planning Processes

Predictive Maintenance

Turkish: Kestirimci Bakım

Predictive maintenance uses sensor and failure data to predict when equipment will fail and plans maintenance accordingly. Spare parts demand stops being random and becomes plannable, and for critical parts the same service level can be reached with less safety stock. The benefit depends on the quality of sensor data and on the recommended maintenance actually being carried out in the field.

Related terms: Artificial Intelligence and Machine Learning, Internet of Things (IoT), Computerized Maintenance Management System (CMMS)
Further reading: Balancing Inventory Levels and Service Efficiency, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

Price Elasticity

Turkish: Fiyat Esnekliği

Price elasticity is the ratio of the percentage change in demand to the percentage change in price. It is obtained from the coefficients of causal models such as regression and expresses numerically how discount depth affects demand. Because elasticity varies by product, channel and promotion type, it should be estimated by segment rather than as a single value.

Related terms: Uplift, Control Group Comparison, Baseline Demand
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation

Product Lifecycle Management (PLM)

Turkish: Ürün Yaşam Döngüsü Yönetimi (PLM)

Product lifecycle management is a system that manages design, product configuration and engineering changes. It shows which part is valid in which configuration. In spare parts planning, configuration tracking makes obsolescence and change risk visible early, and bill of materials data can be passed from this system to enterprise resource planning.

Related terms: Bill of Materials (BOM), Enterprise Resource Planning (ERP), Obsolescence
Further reading: Better Planning of Production Processes, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

Product Wheel

Turkish: Ürün Çarkı

A product wheel is a fixed campaign pattern in which products are made in the same sequence within a defined cycle time. Changeovers become predictable, raw material calls are stabilized and maintenance windows are easier to plan. The sequence is set from the changeover matrix, while quantities are adjusted to demand in each cycle so flexibility is preserved.

Related terms: Campaign Planning, Setup Time, Single-Minute Exchange of Die (SMED)
Further reading: Better Planning of Production Processes, Campaign Planning and Changeover Times in the Process Industry

Production Leveling (Heijunka)

Turkish: Üretim Seviyelendirme (Heijunka)
Also known as: Heijunka

Production leveling (heijunka) means spreading both volume and mix over time. The monthly plan is split into daily quantities and products are made in a mixed sequence within the day. Upstream workloads stay balanced and the kanban count and inventory can be kept low. A mixed sequence needs short setup times, so it is pursued together with quick changeover work.

Related terms: Pull System, Kanban, Single-Minute Exchange of Die (SMED)
Further reading: Better Planning of Production Processes, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation

Production Planning

Turkish: Üretim Planlama

Production Planning is the process of deciding what to produce, how much and when, within capacity and material limits, so that demand can be met. It consists of layers such as the Master Production Schedule (MPS), Rough-Cut Capacity Planning (RCCP), material requirements planning, Capacity Requirements Planning (CRP) and detailed scheduling, each making the decisions of the layer above more specific. The aim is a balanced plan between service level, inventory and resource use.

Related terms: Master Production Schedule (MPS), Rough-Cut Capacity Planning (RCCP), Material Requirements Planning (MRP), Capacity Requirements Planning (CRP), Detailed Scheduling, Demand Planning
Further reading: Better Planning of Production Processes

Protection Interval

Turkish: Koruma Aralığı
Also known as: Risk Period, Protection Period

The protection interval is the period over which stock must be protected against uncertainty, from the moment an order is placed until the next order arrives. In periodic review policies it equals lead time plus the review period. Using only lead time in the safety stock calculation leaves the time until the next review unprotected and raises the risk of stockouts.

Related terms: Safety Stock, Lead Time, Reorder Point (ROP)
Further reading: Balancing Inventory Levels and Service Efficiency, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach, Store-Level Replenishment and Inventory Planning in Retail

Pull System

Turkish: Çekme Sistemi
Also known as: Push and Pull Systems

In a pull system a station produces only when the next station consumes material, and the decision comes from the consumption signal rather than a central plan. Stock between two stations cannot exceed a predefined limit, and overproduction is structurally prevented. It contrasts with the push system, where a plan calculates demand in advance, and most plants combine the two in a hybrid.

Related terms: Kanban, Lean Production, Just-in-Time (JIT)
Further reading: Better Planning of Production Processes, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation

Pull-forward

Turkish: Öne Çekme (Pull-forward)
Also known as: Forward Buying

Pull-forward is the volume of sales drawn from later weeks because consumers and the channel also buy their future needs during a promotion. Its result is the post-promotion dip. It is pronounced for stockable products and deep discounts, and limited for perishable products. The net incremental sales of a promotion are found by subtracting pull-forward from the gross uplift.

Related terms: Cannibalization, Campaign Library, Sell-in
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation

R

Radio Frequency Identification (RFID)

Turkish: Radyo Frekanslı Tanımlama (RFID)

Radio frequency identification is a technology in which tags are read contactlessly by radio waves so that a product, container or pallet is identified and tracked automatically. Unlike a barcode, it can read several tags without a line of sight. In electronic kanban it passes the signal of an emptied container to the system automatically, and it is also used to improve store and warehouse stock accuracy.

Related terms: Kanban, Internet of Things (IoT), Supply Chain Control Tower
Further reading: Better Planning of Production Processes, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation

Reorder Point (ROP)

Turkish: Yeniden Sipariş Noktası
Also known as: Order Point

The reorder point is the stock level at which a new order must be placed once on-hand inventory falls to it. It is found by adding safety stock to the demand expected during the lead time. It is used as the order trigger in inventory policies based on continuous review.

Related terms: Safety Stock, Lead Time, Economic Order Quantity (EOQ)
Further reading: Balancing Inventory Levels and Service Efficiency, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

Repair Pipeline Stock

Turkish: Onarım Hattı Stoğu
Also known as: Repair Line Stock

Repair pipeline stock is the stock held for repairable parts so that a replacement is available while the failed part is in repair. The required quantity depends on the expected monthly failures multiplied by the repair turnaround time, and on the desired probability level. As repair time shortens, the stock requirement falls markedly. Speeding up repair is therefore often cheaper than buying new parts.

Related terms: Repairable Part, Installed Base, Operational Availability
Further reading: Balancing Inventory Levels and Service Efficiency, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

Repairable Part

Turkish: Onarılabilir Parça
Also known as: Repair Loop

A repairable part is one that, when it fails, is sent to a repair line instead of being scrapped and rejoins stock after repair. The stock needed depends on the average number of parts missing from the system while repair is under way: the expected number of failures is multiplied by the repair turnaround time. Shortening repair time is therefore often more effective than buying new parts.

Related terms: Installed Base, VED Analysis, Safety Stock
Further reading: Balancing Inventory Levels and Service Efficiency, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

Root Mean Squared Error (RMSE)

Turkish: Sapma Kareleri Ortalamasının Karekökü (RMSE)

Root Mean Squared Error (RMSE) is calculated by taking the square root of the average of the squared errors and is expressed in the product's own unit. Because it gives more weight to large errors, it is preferred where infrequent but costly errors matter. The error measure used in safety stock calculation is based on the same logic.

Related terms: Forecast Error, Mean Absolute Deviation (MAD), Safety Stock
Further reading: Effective Demand Planning and Forecasting, Forecast Errors and Bias: How Are They Measured and Interpreted?

Rough-Cut Capacity Planning (RCCP)

Turkish: Kaba Kapasite Planlama (RCCP)

Rough-Cut Capacity Planning (RCCP) is a quick capacity check that tests whether the production plan is feasible at the level of critical resources that could become bottlenecks. Without detailed work centre calculations, it shows early whether the plan fits the available capacity. When a shortfall is found, the plan or the capacity is adjusted before material requirements are calculated.

Related terms: Master Production Schedule (MPS), Capacity Requirements Planning (CRP), Theory of Constraints (TOC), Production Planning
Further reading: Better Planning of Production Processes

S

Safety Stock

Turkish: Emniyet Stoğu
Also known as: Buffer Stock

Safety stock is buffer inventory held above expected needs to protect against uncertainty in demand and in supply lead time. Its size depends on the target service level, the distribution of forecast error and the variability of lead time. Setting it too low leads to stockouts and delays, while setting it too high ties up capital in unnecessary inventory.

Related terms: Service Level, Reorder Point (ROP), Lead Time, Multi-Echelon Inventory Optimization (MEIO)
Further reading: Balancing Inventory Levels and Service Efficiency, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

Safety Time

Turkish: Emniyet Süresi (Safety Time)
Also known as: Safety Lead Time

Safety time means planning for a material to be available a set period before its requirement date as protection against uncertainty. It protects by adding time instead of quantity. In multi-level product structures, holding safety stock at every level inflates total inventory, so safety time is preferred at lower levels and safety stock at the finished goods or production plan level.

Related terms: Safety Stock, Material Requirements Planning (MRP), Lead Time
Further reading: Balancing Inventory Levels and Service Efficiency, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Sales and Operations Execution (S&OE)

Turkish: Satış ve Operasyonların Yürütülmesi (S&OE)
Also known as: Weekly Execution

Sales and Operations Execution (S&OE) is the short-term counterpart of the monthly planning cycle. It is a weekly or daily meeting that deals with exceptions such as delayed shipments, stock shortages and promotion deviations. Current sales, order and inventory data are tracked against the plan, and corrective decisions are taken quickly so that the monthly plan remains executable.

Related terms: Sales and Operations Planning (S&OP), Supply Chain Control Tower, Demand Sensing
Further reading: Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics, Which Decision in Which Meeting in the S&OP Cycle? Calendar, Decision Logic, and Scenarios

Sales and Operations Planning (S&OP)

Turkish: Satış ve Operasyon Planlama (S&OP)
Also known as: Sales and Operations Planning

Sales and Operations Planning (S&OP) is a monthly management process that brings demand, supply, inventory and financial targets together in a single plan. The demand plan is compared with supply capacity, and the gaps between them are resolved in an executive meeting. As a result, company goals and operational plans run on the same assumptions.

Related terms: Integrated Business Planning (IBP), Sales and Operations Execution (S&OE), Demand Planning, Master Production Schedule (MPS)
Further reading: How Sales and Operations Planning Aligns Business Goals, Which Decision in Which Meeting in the S&OP Cycle? Calendar, Decision Logic, and Scenarios, Balancing Demand and Supply: Coordinating Demand Planning and Supply Planning Processes

Scope 3 Emissions

Turkish: Kapsam 3 Emisyonları
Also known as: Value Chain Emissions

Scope 3 emissions are the indirect greenhouse gas emissions that arise in a company's value chain, outside its own facilities and the energy it purchases. Purchased raw materials and services, transport, the use of products and waste management all fall within this scope. Because supplier selection, transport and packaging decisions directly affect Scope 3 results, the topic is closely tied to planning.

Related terms: Carbon Border Adjustment Mechanism (CBAM), Total Cost of Ownership (TCO)
Further reading: Supply Chain Management Explained, Sustainability in the Supply Chain: Scope 3 Emissions, CBAM, and Their Effects on Planning, Total Cost of Ownership (TCO) in Purchasing: Supplier Selection and Green Procurement

Seasonality

Turkish: Sezonsallık
Also known as: Seasonal Component

Seasonality is the pattern in which demand rises and falls in particular periods of the year and repeats in a similar way every year. Climate, holidays, the school calendar and budget cycles can all cause it. In time series methods the seasonal component is separated out and added back to the forecast, and production and inventory preparation are planned around it.

Related terms: Trend, Stationarity, Demand Planning
Further reading: Effective Demand Planning and Forecasting, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality, Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics

Sell-in

Turkish: Kanala Satış (Sell-in)
Also known as: Sales to the Channel

Sell-in is the sales and shipments a manufacturer makes to a distributor, dealer or retail chain. Production and shipment plans are built on this data. Because of promotion loading and channel stocking, sell-in can differ from sales to consumers in both timing and quantity, so the two data sets are monitored together.

Related terms: Sell-out, Pull-forward, Demand Sensing
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation, Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics

Sell-out

Turkish: Tüketiciye Satış (Sell-out)
Also known as: Sales to Consumers

Sell-out is the sale of a product to consumers at the retail checkout or point of sale. Because it excludes the channel's stock loading and unloading, it reflects true demand more closely than sell-in. The gap between sell-out and sell-in shows whether channel stock is building up or being depleted.

Related terms: Sell-in, Demand Sensing
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation, Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics

Service Level

Turkish: Servis Seviyesi
Also known as: Cycle Service Level

Service level is the target for how reliably stock items can be supplied when demand arrives. Cycle service level expresses the probability of not running out of stock during a replenishment cycle. The higher the target, the more safety stock is required, so it is recommended to set the level according to the importance of each item rather than the same level for all items.

Related terms: Fill Rate, Safety Stock, ABC-XYZ Analysis
Further reading: Balancing Inventory Levels and Service Efficiency, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

Setup Time

Turkish: Ayar (Setup) Süresi
Also known as: Changeover Time

Setup time is the preparation and changeover time needed for a machine or line to move from producing one product to another. When setup time is long, producing in small batches is uneconomical and batches grow. Shortening setup times increases flexibility and makes it possible to lower inventory levels.

Related terms: Campaign Planning, Just-in-Time (JIT), Detailed Scheduling
Further reading: From Planning to Detailed Scheduling, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation, Campaign Planning and Changeover Times in the Process Industry

Seven Wastes (Muda)

Turkish: Yedi İsraf (Muda)
Also known as: Seven Wastes, Muda

The seven wastes classify the activities that add no value for the customer in lean production into seven categories. They are overproduction, waiting, unnecessary transport, over-processing, excess inventory, unnecessary motion and defects. Overproduction is considered the most harmful because it causes most of the others. The classification is used as a practical checklist for recognizing waste on the shop floor.

Related terms: Lean Production, Value Stream Mapping (VSM), Pull System
Further reading: Better Planning of Production Processes, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation

Simulation

Turkish: Simülasyon

Simulation is a method that imitates the behavior of a system on a model so that the outcomes of different scenarios can be compared. The effect of random variables can be examined for decisions that would be costly or risky to test in the real system. While optimization searches for the best solution, simulation shows how a given decision performs under different conditions.

Related terms: Optimization, Digital Twin, Operations Research
Further reading: What is Optimization?

Single-Minute Exchange of Die (SMED)

Turkish: Hızlı Ayar (SMED)
Also known as: Quick Changeover

SMED is a lean approach that aims to shorten setup and changeover time during product changes. External preparation that can be done while the machine runs is separated from internal preparation done after it stops, and cleaning and adjustment steps are standardized. Shorter setups make small batches, kanban and production leveling workable.

Related terms: Setup Time, Product Wheel, Production Leveling (Heijunka)
Further reading: Better Planning of Production Processes, Campaign Planning and Changeover Times in the Process Industry, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation

Stationarity

Turkish: Durağanlık

Stationarity is the condition in which the mean and variability of a time series do not change noticeably over time, meaning that the series contains no trend or seasonality. Many statistical forecasting methods assume that the series is stationary. If it is not, it is transformed, for example by differencing, or a method that models trend and seasonality directly is chosen.

Related terms: Trend, Seasonality, Intermittent Demand
Further reading: Effective Demand Planning and Forecasting, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

Supplier Scorecard

Turkish: Tedarikçi Karnesi
Also known as: Supplier Scorecards

A supplier scorecard is an evaluation tool that regularly measures a supplier's performance on on-time delivery, quality, price and other cost items. A manually kept scorecard is updated once a year in most firms. When order and delivery records are kept digitally, the same data accumulates with every order and the scorecard can be produced automatically together with total cost of ownership analysis.

Related terms: Total Cost of Ownership (TCO), Enterprise Resource Planning (ERP), Lead Time
Further reading: Supply Chain Management Explained, Total Cost of Ownership (TCO) in Purchasing: Supplier Selection and Green Procurement

Supply Chain Control Tower

Turkish: Tedarik Zinciri Kontrol Kulesi
Also known as: Control Tower

A supply chain control tower is a monitoring structure that combines order, inventory, production and shipment data on a single screen and shows exceptions and risks early. Situations such as delayed shipments, stock shortages or capacity problems are detected in advance and passed to the people responsible. It makes it easier to decide which exceptions to take up in execution meetings.

Related terms: Sales and Operations Execution (S&OE), Electronic Data Interchange (EDI), Internet of Things (IoT)
Further reading: Supply Chain Management Explained, Demand Planning and S&OP in Fast-Moving Consumer Goods (FMCG): 5 Critical Topics

Supply Chain Management

Turkish: Tedarik Zinciri Yönetimi

Supply Chain Management is the management approach that coordinates material, information and financial flows end to end between suppliers, production, storage, distribution and customers, from raw material to the final consumer. It brings purchasing, production, inventory, logistics and demand planning together around shared goals and aims to balance cost, service level and resilience. The performance of the whole chain, rather than of individual functions, is taken as the basis.

Related terms: Sales and Operations Planning (S&OP), Supply Chain Resilience, Supply Chain Control Tower, Demand Planning
Further reading: Supply Chain Management Explained

Supply Chain Resilience

Turkish: Tedarik Zinciri Dayanıklılığı

Supply chain resilience is the ability of a chain to withstand disruptions in supply, demand or logistics and to return to normal operation within an acceptable time. Multiple suppliers, appropriate inventory buffers, visibility and scenario planning are among the main elements that strengthen it. Since every measure has a cost, risk and cost should be assessed together.

Related terms: Supply Chain Control Tower, Safety Stock, Multi-Echelon Inventory Optimization (MEIO)
Further reading: Supply Chain Management Explained

Sustainable Procurement Guidance (ISO 20400)

Turkish: Sürdürülebilir Satın Alma Rehberi (ISO 20400)

ISO 20400 is a guidance standard prepared for sustainable procurement. It recommends building environmental and social criteria into every stage of purchasing instead of adding them at the end. Because it is a guidance document, it is not used for certification and no certificate can be obtained. Organizations use it as a reference for building purchasing policies and supplier selection criteria.

Related terms: Green Procurement, Total Cost of Ownership (TCO), Supplier Scorecard
Further reading: Supply Chain Management Explained, Total Cost of Ownership (TCO) in Purchasing: Supplier Selection and Green Procurement

T

Theory of Constraints (TOC)

Turkish: Kısıtlar Teorisi (TOC)

The Theory of Constraints (TOC) is a management approach built on identifying and managing the weakest link that limits a system's output, called the constraint. Once the constraint is identified, resources are arranged to use it fully, other resources are subordinated to it, and the constraint's capacity is then increased. It underlies planning methods in production scheduling that put the bottleneck resource at the centre.

Related terms: Detailed Scheduling, Rough-Cut Capacity Planning (RCCP), Setup Time
Further reading: Better Planning of Production Processes

Third-Party Logistics (3PL)

Turkish: Üçüncü Parti Lojistik (3PL)
Also known as: Outsourced Logistics

Third-party logistics (3PL) is the outsourcing of some or all logistics activities, such as transportation, warehousing and distribution, to an external service provider. Companies can gain flexibility and economies of scale, but visibility over shipment planning and data flows should be safeguarded through contracts and performance indicators.

Related terms: Transportation Management System (TMS), Warehouse Management System (WMS), Vehicle Routing
Further reading: Streamlining Logistics and Distribution

Time Fences

Turkish: Zaman Çitleri
Also known as: Planning Time Fences

Time fences are boundaries that define to what extent the plan may be changed across the planning horizon. The near term is frozen, changes in the middle range require approval, and the distant range can be updated freely. This structure reduces the disturbance that frequent changes to the production plan cause in purchasing and production.

Related terms: Master Production Schedule (MPS), Available-to-Promise / Capable-to-Promise (ATP/CTP), Material Requirements Planning (MRP)
Further reading: Better Planning of Production Processes, How MPS, MRP, and JIT Work Together: Time Fences, ATP, and Hybrid Planning

Top-Down / Bottom-Up Forecasting

Turkish: Yukarıdan Aşağı / Aşağıdan Yukarı Tahmin
Also known as: Hierarchical Forecasting

Top-down forecasting allocates a forecast made at the total level to lower levels such as product, customer or region, using proportions. Bottom-up forecasting adds up forecasts made at the lower levels to reach the higher level. The first tends to be more stable and the second more detailed, so in practice the two approaches are used together and reconciled.

Related terms: Demand Planning, Forecast Error, Sales and Operations Planning (S&OP)
Further reading: Effective Demand Planning and Forecasting, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

Total Cost of Ownership (TCO)

Turkish: Toplam Sahip Olma Maliyeti (TCO)

Total Cost of Ownership (TCO) is a holistic cost measure that covers all costs arising from acquiring, using and disposing of a good or service, in addition to its purchase price. Items such as transport, customs, inventory holding, quality, maintenance and carbon cost are taken into account. It allows suppliers to be selected on the lowest total cost rather than the lowest unit price.

Related terms: Scope 3 Emissions, Carbon Border Adjustment Mechanism (CBAM)
Further reading: Supply Chain Management Explained, Total Cost of Ownership (TCO) in Purchasing: Supplier Selection and Green Procurement

Transportation Management System (TMS)

Turkish: Taşıma Yönetim Sistemi (TMS)

A Transportation Management System (TMS) supports shipment planning, vehicle loading, routing and carrier management. It assigns orders to vehicles and routes while taking transport cost and vehicle utilization into account. Shipment tracking and the evaluation of carrier performance also fall within its scope.

Related terms: Warehouse Management System (WMS), Enterprise Resource Planning (ERP), Supply Chain Control Tower
Further reading: Streamlining Logistics and Distribution, Store-Level Replenishment and Inventory Planning in Retail

Trend

Turkish: Eğilim
Also known as: Trend Component

A trend is the persistent movement of a time series, upward or downward, over the long term. Market growth, the product life cycle or pricing policy can all produce a trend. Separating the trend from seasonal fluctuations matters for choosing a forecasting method and for long-term capacity decisions.

Related terms: Seasonality, Stationarity
Further reading: Effective Demand Planning and Forecasting, Time Series Analysis for Demand Forecasting: Stationarity, Trend, and Seasonality

U

Uplift

Turkish: Brüt Artış (Uplift)
Also known as: Gross Uplift

Uplift is the part of sales during a promotion that exceeds baseline demand. It gives a first impression of how the campaign performed, but it also contains sales pulled forward from later weeks, so it is misleading on its own. Subtracting the pull-forward and the post-promotion dip from uplift gives net incremental sales, the true contribution of the campaign.

Related terms: Baseline Demand, Pull-forward, Campaign Library
Further reading: Effective Demand Planning and Forecasting, How to Forecast Promotion Impact: Campaign Types and Uplift Calculation

V

Value Stream Mapping (VSM)

Turkish: Değer Akışı Haritalama (VSM)

Value stream mapping (VSM) shows all the steps a product family passes from raw material to customer, along with the process time, inventory and waiting time at each step, in a single diagram. Its most important output is the ratio of value-adding time to total lead time. Because points where inventory builds up are visible on the map, the first improvement areas are chosen from it.

Related terms: Lean Production, Lead Time, Pull System
Further reading: Better Planning of Production Processes, Lean Production and Kanban Systems: Pull Logic, Kanban Count Calculation, and Implementation

VED Analysis

Turkish: VED Analizi
Also known as: Criticality Analysis

VED analysis is a criticality classification that sorts parts as Vital, Essential or Desirable according to their effect on system operation. While ABC-XYZ analysis shows value and demand behavior, VED shows the consequence of a shortage. Used together, stock targets are set on both value and criticality.

Related terms: ABC-XYZ Analysis, Repairable Part, Service Level
Further reading: Balancing Inventory Levels and Service Efficiency, Spare Parts Planning in Defense and Aerospace: Repair Cycle, Criticality, and Obsolescence

Vehicle Routing

Turkish: Araç Rotalama
Also known as: Route Optimization

Vehicle routing is the problem of determining the number of vehicles and the routes that serve many delivery points from one or more depots so that cost or time is minimized. Because constraints such as vehicle capacity, time windows and driving hours apply, problems are mostly solved with heuristic methods.

Related terms: Transportation Management System (TMS), Third-Party Logistics (3PL), Optimization, Heuristics
Further reading: Streamlining Logistics and Distribution

W

Warehouse Management System (WMS)

Turkish: Depo Yönetim Sistemi (WMS)

A Warehouse Management System (WMS) manages goods receipt, putaway, picking and shipping in a warehouse at location level. It records which product is held in which location and in what quantity, and reduces the gap between available stock and physical stock. Accurate stock records are necessary for the reliability of planning systems and safety stock calculations.

Related terms: Enterprise Resource Planning (ERP), Transportation Management System (TMS), Internet of Things (IoT)
Further reading: Streamlining Logistics and Distribution, 5 Common Mistakes in Safety Stock Calculation and the Correct Approach

Weighted Mean Absolute Percentage Error (WMAPE)

Turkish: Ağırlıklı Mutlak Sapma Yüzdeleri Ortalaması (WMAPE)

Weighted Mean Absolute Percentage Error (WMAPE) is found by dividing the sum of the absolute errors by the sum of actual demand. Because high-volume products have more influence on the result, it gives a more balanced picture than MAPE in portfolio-level reporting. Forecast accuracy is most often reported as one minus this indicator.

Related terms: Mean Absolute Percentage Error (MAPE), Forecast Error, Forecast Bias, Mean Absolute Deviation (MAD)
Further reading: Effective Demand Planning and Forecasting, Forecast Errors and Bias: How Are They Measured and Interpreted?

Optimum Planlama Training Related to Planning Terms

The terms in this glossary are covered in a hands-on way in Optimum Planlama trainings. Related trainings are listed below.

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