Month: December 2017

WHAT IS A RMA OR RGA A Return Merchandise Authorization (RMA) is a transaction whereby the recipient of a product arranges to return defective goods to the supplier to have the product repaired or replaced or in order…

Zero sum game: A situation in which the total amount of profit ( or “pie”) is fixed. Individual players by their actions can only affect how the profit is allocated (or pie is cut). Also called a constant sum…

Yield management: term used in the airline industry for revenue management.

X12: A standard for electronic communication of business forms. For example, form 810 is an invoice, and 856 is a shipping notice. See also: DISA. XML (eXtensible Markup Language): An “open”, ISO standard data language, similar to, but more powerful…

Wardrop’s Principle: A traffic equilibrium rule. Suppose commuters wish to travel from A to B. According to Wardrop’s principle, at a user equilibrium where users choose the paths, among all paths along which there is a positive A-to-B traffic,…

Value based pricing: charging each customer an amount close to the customer’s value for the product. This presumes that resale among customers does not occur and that one can determine each customer’s value for the product. One form originally…

UCC (Uniform Commercial Code): a standard set of laws governing commercial transactions (bills of lading, letters of credit, bank deposits, collections, etc.) adopted by all states in the U.S. except Louisiana (it uses a variant of the Napoleonic code)….

T1 line (Trunk level 1): A data transmission capacity of 1,544,000 bits per second. This is a standard measure of telephone line capacity in North America. Historically, enough to carry 24 voice channels. Higher levels are: T2: 96 voice…

Safety stock: Inventory carried to protect against running out during a lead time due to the uncertainty in either: the length of the lead time, the amount delivered, amount demanded, or time of occurrence of demand during a lead…