| Average aggregate inventory value | The total value of all items held in inventory for the firm valued at cost.
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| Bullwhip effect | The variability in demand is magnified as we move from the customer to the producer in the supply chain.
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| Cost of goods sold | The annual cost for a company to produce the goods or services provided to customers.
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| Design for logistics | This concept involves consideration of material procurement and distribution costs during the product design phase.
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| Functional products | Staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.
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| Innovative products | Products such as fashionable clothes and personal computers that typically have a life cycle of just a few months.
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| Inventory turnover and weeks of supply | Measures of supply chain efficiency that are mathematically the inverse of one another.
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| Logistics | Management functions that support the complete cycle of material flow: from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product.
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| Mass customization | The ability of a company to deliver highly customized products and services to different customers around the world.
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| Outsourcing | Moving some of a firm's internal activities and decision responsibility to outside providers.
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| Process postponement | Delay of the process step that differentiates a product to as late in the supply chain as possible.
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| Service supply chain | A term that stresses the unique role of the customer as a supplier of input and recipient of output for a service firm.
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| Supply chain | How organizations are linked together, as viewed from a particular company.
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| Transportation mode | How an item is shipped.
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| Value density | The value of an item per pound of weight.
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| Weeks of supply | A measure of how many weeks' worth of inventory is in the system at a particular point in time.
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