Industry Terms

B2B refers to business to business transactions where one business buys goods and services from another business.

B2C refers to business to consumer transactions where the final customer buys goods and Services from a business.

Combination of several smaller batches into one to reduce the MRP is called the Batch Rule.

An extensive list of raw materials, components required to manufacture or repair a product or service is called “bill of materials (BOM)”. A bill of materials often is designed in a format which keeps the finished product at the highest level and the other individual components and materials at the bottom. When it comes to […]

The Bullwhip Effect is a phenomenon in the supply chain and distribution channels in which forecasts reveal supply chain inefficiencies.

A backorder is an order which you assure to fulfill despite not having the concerned item in the inventory. The promise includes a shipping date until which your customer agrees to wait.

Backflush is an accounting approach, used in a Just-In-Time (JIT) environment, in which costing is delayed until goods are finished. Costs are then ‘flushed’ back at the end of the production process and assigned to the goods. This approach helps in eliminating all work-in-process accounts and manual assignments of costs to products during the various […]