Module+13000+XI.+Vocabulary


 * XI. Module 13000 Vocabulary wxa**


 * 1) **Binding constraint **: the limited resources of constraints all can be used by product mix
 * 2) **Carrying costs **: the total cost of holding inventory
 * 3) **Constrained optimization **: to find a solution maximizing the weight of satisfied constraints
 * 4) **Constrains: ** Limitations of resources and demand for each product
 * 5) **Drum-buffer-rope (DBR) system **: TOC inventory system
 * 6) **Drummer **: the major binding constraint that most organizations have.
 * 7) **Economic order quantity (EOQ): **the level of inventory that minimizes total inventory holding costs and ordering costs.
 * 8) **Electronic data interchange **<span style="font-family: 'Arial','sans-serif';">: the <span style="color: #000000; font-family: 'Arial','sans-serif';">transmission of data between organizations by electronic means
 * 9) **<span style="font-family: 'Arial','sans-serif';">Kanban system **<span style="font-family: 'Arial','sans-serif';">: an information system, controlling production through the use of markers or cards, help <span style="color: #000000; font-family: 'Arial','sans-serif';"> to eliminate common problems such as manual entry errors and lost cards
 * 10) **<span style="font-family: 'Arial','sans-serif';">Lead time: **<span style="font-family: 'Arial','sans-serif';">the time between the beginning of a process or project and the appearance of its results
 * 11) **<span style="font-family: 'Arial','sans-serif';">Ordering costs: **<span style="font-family: 'Arial','sans-serif';"> the costs of placing and receiving an order
 * 12) **<span style="font-family: 'Arial','sans-serif';">Safety stock **<span style="font-family: 'Arial','sans-serif';">: some inventories are carried for extra demand that caused by fluctuations
 * 13) **<span style="font-family: 'Arial','sans-serif';">Setup costs: **<span style="font-family: 'Arial','sans-serif';"> the total cost of preparing equipment and facilities that used for production
 * 14) **<span style="font-family: 'Arial','sans-serif';">Shadow prices: **<span style="color: #000000; font-family: 'Arial','sans-serif';">the maximum price that management is willing to pay for an extra unit of a given limited resource
 * 15) **<span style="font-family: 'Arial','sans-serif';">Stock-out costs: **<span style="font-family: 'Arial','sans-serif';"> the cost of insufficient inventory