Month: December 2017

Gambler’s Ruin: A characterization of the fact that even if the odds are in our favor, we may still go broke when facing a bigger competitor in a situation where chance plays a role. Specifically, if at each encounter,…

Failure rate curve: A curve that plots a machine’s probability of failure in the next small interval of time, given that the machine has not yet failed. If the time to failure has an exponential distribution, then the failure…

e: The mathematical constant 2.71828182846 useful in computing continuous compounding of interest. e = limit as n goes to infinity of (1 + 1/n)n. For example, if continuous compounding is used at interest rate r per year, then after…

Data Matrix code: A two-dimensional, laser scanable code used for supply chain purposes by the pharmaceutical and consumer electronics industries. The code is made up of very small black and white squares. Other two dimensional codes include PDF 417…

Cabotage: Carriage of goods or people between an origin and destination, both in the same state or country, by a carrier not from that state or country. Many states or countries have laws prohibiting such shipments by foreign carriers,…

B2B: Business to Business. This is a transaction between two businesses. B2C: Business to Consumer. This is a transaction between a business and a consumer. Backhaul: A return trip, carrying goods perhaps at a lower rate, after making the primary delivery….

This glossary was originally compiled in conjunction with a course on Logistics and Supply Chain Management at the University of Chicago. Entries tend to be arranged according to their abbreviation. Thus, Bill-Of-Material is defined under BOM. The reasoning…

In the conference room are meeting: Clifford (CEO), Christian (CFO), Irene (IT Manager), Simon (Sales Manager), and Peter (Production Manager) The Agenda title: Although it varies from company to company, you might want to examine the following: How…

In the conference room are meeting: Clifford (CEO), Christian (CFO), Irene (IT Manager), Simon (Sales Manager), and Peter (Production Manager) The Agenda title: Although it varies from company to company, you might want to examine the following: Have…