| bullwhip effect | The increasing variability of demand as one moves upstream in a supply chain.
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| collaborative planning, forecasting, and replenishment (CPFR) | An approach to demand planning in supply chains in which partners negotiate and agree on a plan for meeting demand.
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| perfect order | An order that arrives on time as promised, is of the correct quantity, is not damaged, and also includes all of the agreed-upon services.
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| retailer-supplier partnerships (RSPs) | A retailer/supplier alliance that changes the way inventory is delivered and the way it changes hands.
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| risk pooling | Inventory held in one warehouse to service a large number of retailers requires less inventory than if held at the individual retailers.
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| supply-chain network optimization | Optimization of decisions across the entire geographical network of the supply chain.
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| third party logistics provider (3PL) | A provider of logistics services such as warehousing or transportation and logistics.
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| vendor managed inventory (VMI) | A retailer-supplier partnership in which the supplier manages the inventory in the retail store and in some cases maintains ownership of the inventory until it is purchased by the consumer.
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