Author: admin

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…

R2 (R squared): A measure, between 0 and 1, of how well a forecast or regression line fits a set of data. An R2 of 1 means a perfect fit. Numerically, it is 1 – (sum of squared errors…

QFD (Quality Function Deployment): A table oriented procedure for converting customer requirements for a product into the features or functions that should be included in the product design. Quantity discount: Pricing policy by which the cost per unit purchased decreases…

Pallet: Platform, usually of wood, about 6 inches high by 40 in. by 48 in. on which goods are placed, so they can be picked up by a forklift to be placed in storage or on a truck. These…

OEM (Original Equipment Manufacturer): A manufacturer is an OEM if its product is used a component in the product of some other manufacturer. OLAP (OnLine Analytical Processing): A general term for database queries were some analytical calculations are performed in…