1.Economies of scale refer to the expansion of production capacity under a certain level of science and technology. The trend that the long-term average cost decline. Which is the downward trend is the long term cost of a curve.2.FMS(flexible manufacturing systems). The flexible manufacturing system is composed of a unified information control system a material transportation system and a set of digital control processing equipment.A automatic machine manufacturing system capable of adapting processing object transformation.3.MRP(materials requirements planning) is defined according to the number of dependent relationship and product mix of goods at all levels to plan for each article is subject to completion of the reference period is the time inverted plan, issued by each item in the length difference is within an industrial manufacturing materials planing management.4.JIT (just in time)The basic principle of JIT logistics is to ensure that all elements of the chain are synchronized and that there must be early identification of shipping and replenishment requirements and, most importantly of all, there must be the highest level of planning discipline.5.SKU (Stock keeping unit) SKUs may be a universal number such as a UPC code or supplier part number or may be a unique identifier used by a specific a store or online retailer.6effective & efficienteffectiveHaving an intended or expected effect.efficientActing or producing effectively with a minimum of waste,expense,or unnecessary effort.7.capability(能力) & competency（实力）8.productivity advantage & value advantageLogistics management can provide a multitude of ways to increase efficiency and productivity and hence contribute significantly to reduced unit costs.Essentially the development of a strategy based upon add values will normally require a more segmented approach to the market. When a company scrutinizes markets closely it frequently finds that there are distinct ‘value segments’. In other words different importance to different benefits. The importance of such benefit segmentation lies in the fact that often there are substantial opportunities for creating differentiated appeals for specific segments.Put very simply, successful companies either have a productivity advantage or they have a ‘value’ advantage or a combination of the two. The productivity advantage gives a lower cost profile and the valueadvantage gives the product or offering a differential ‘plus’over competitive offerings.9.Value chain activities can be categorized into two types-primary activities (inbound logistics, operation, outbound logistics, marketing and sales, and service) and support activities (infrastructure, human resource management, technology development and procurement).These support activities within the firm. Competitive advantage is derived from the way in which firms organize and perform these discrete activities within the value chain. To gain competitive advantage over its rivals, a firm must deliver value to its customers through performing these activities in more efficiently than its competitors or by performing the activities in a unique way that creates greater differentiation.10.TQM(total quality management)Consists of organization-wide efforts to install and make permanent a climate in which an organization continuously improves its ability to deliver high-quality products and services to customers.11.Supply chain against supply chainIt must be recognized that the concept of supply chain management, is in fact no more than an extension of the logic of logistics.The management of upstream and downstream relationship with supplies and customers to deliver superior customer value at less cost to the supply chain as a whole.12.Integrated supply chainStage 1 position of complete function independence where each business function such as production or purchasing does their own thing in complete isolation from the other business functions.Stage 2 companies have recognized the need for at least a limited degree of integration between adjacent function,e.g.distribution and inventory management or purchasing and materials control.Stage 3 requires the establishment and implementation of an “end-to-end “planning frameworkStage 4 represents true supply chain integration in that the concept of linkage and co-ordination that is achieved in stage 3 is now extended upstream to suppliers and downstream to customers.A supply chain could be defined as:The management of upstream and downstream relationship with supplies and customers to deliver superior customer value at less cost to the supply chain as a whole.13.Supply chain is a networkWhilst the phrase ‘supply chain management’is now widely used,it could be argued that it should really be termed ‘demand chain management’ to reflect the fact that the chain should be driven by the market, not by suppliers.equally the word ’chain’ should be replaced by ‘network’since there will normally be multiple customers and customers’ customers to be included in the total system.Extending this idea it has been suggested that a supply chain could more accurately be defined as:A network of connected and interdependent organizations mutually and cooperatively working together to control, manage and improve the flow of materials and information from suppliers to end user.14.The changing logistics environment(1)the customer service explosionThe customer in today’s marketplace is more demanding not just of product quality, but also of service.(2)Time compression(3)Globalization of industry(4)Organizational integration15.The components of customer service（1）Pre-transaction elements (交易前的要素)①Written customer service policy(Is it communicated internally and externally, is it understood, is it specific and quantified where possible?)②Accessibility(Are we easy to contact/do business with? Is there a single point of contact?)③Organization structure(Is there a customer service management structure in place? What levelof control do they have over their service process?)④System flexibility(Can we adapt our service delivery systems to meet particular customer needs?)(2)Transaction elements (交易中的要素)①Order cycle time(What is the elapsed time from order to delivery? What is the reliability/variation?)②Inventory availability(What percentage of demand for each item can be met from stock?) Order fill rate(What proportion of orders are completely filled witnin the stated lead time?)③Order status information(How long does it take us to respond to a query with the required information ?)(3)Post-transaction elements①Availability of spares(What are the in-stock levels of service parts?)②Call-out time(How long does it take for the engineer to arrive and what is the ‘first call fix rate’?)③Product tracing/warranty(Can we identify the location of individual products once purchased? Can we maintain/extend the warranty to customers’ expected levels)④Customer complaints,claims ect.(How promptly do we deal with complaints and returns? Do we measure customer satisfaction with our response?)16.The “Pareto” or 80/20 ruleThe ‘Pareto’ or 80/20 rule’ shows how a typical company might find its profits varying by customer and by product.The curve is traditionally divided into three categories: the top 20 percent of products and customers by profitability are the ‘A’ category; the next 50 percent or so are labeled‘B’and the final 30 percent are category ‘C’. The precise split between the categories is arbitrary as the shape of the distribution will vary from business to business and from market to market.17.ABCLooking first at differences in product profitability, it can be used as the basis for classic inventory control whereby the highest level of service (as represented by safety stock) is provided for the ‘A’products, a slightly lower level for the ‘B’ products and lower still for the ‘C’s’. Alternatively, and probably to be preferred, we might differentiate the stock holding by holding the ‘A’items as close as possible to thecustomer and ‘B’and ‘C’items further back up the supply chain. The savings in stock-holding costs achieved by consolidating the ‘B’ and ‘C’items as a result of holding them at fewer locations would normally cover the additional cost of des patching them to the customer by a faster means of transportation.18.DDPIn essence it is somewhat analogous to customer profitability analysis that it attempts to identify all the costs that attach to a product or an order as it moves through the distribution channel.The idea behind DDP is that in many transactions the customer will incur costs other than the immediate purchase price of the product. often this is termed the total cost of ownership. Sometimes these costs will be hidden and often they can be substantial-certainly big enough to reduce or even eliminate profit on a product item.For the supplier it is important to understand DDP in such as his ability to be a low cost supplier is clearly influenced by the cots that are that product moves through his logistics system.19.BenchmarkingCompetitive benchmarking might simply be defined as the continuous measurement of the company’s products ,services, processes and practices against the standards of best competitors and other companies who are recognized as leaders.20.SCOR model(P107图4.2)SCOR (supply chain operations reference), is built around four major processes: plan----source----make----deliver, and covers the key supply chain activities from identifying customer demand through to delivering the product and collecting the cash. The aim of SCOR is to provide a standard way to measure supply chain performance and to use commom metrics to benchmark against other organizations.21.Supply chain mapping -an example（P114）22.The trend towards globalization in the supply chain23.Lead time24.VMI。