Planning & Forecasting Acronyms

  1. 3PL- Third-Party (3rd) Logistics Provider
  2. ABF - Account Based Forecasting, also known as Customer Planning or Customer Specific Forecasting (CSF), refers to a bottom up demand forecasting process which starts with customer retail forecast, then arrives at a customer shipment forecast to be aggregated into a supply chain forecast.
  3. ACV -All Commodity Volume
  4. ATO - Assembled to Order
  5. ATP - Available to Promise
  6. BOM - Bill of Materials
  7. CBP - Consensus Business Planning
  8. CPG - Consumer Packaged Goods, refers to the manufacturers and supplies in the Packaged Goods industry, a very specific reference to companies that manufacture or distribute Consumer Packaged Goods to the retail environment.
  9. CRM - Customer Relationship Management; the process and discipline to analyze the trade funds, promotional planning and execution and evaluating the effectiveness of promotions.
  10. CRP - Continuous Replenishment Program, another term to denote VMI or Vendor Managed Inventories, where the supplier or manufacturer monitors the inventory at the customer warehouse on a continuous basis and writes the orders on behalf of the customer to ensure warehouses are adequately stocked.
  11. CTO - Configured to Order
  12. DC - Distribution Center
  13. DP - Demand Planning, a functional and subject reference to the forecasting group and role
  14. DDSN -Demand Driven Supply Networks
  15. DRP - Distribution Requirements Planning
  16. DTC - Direct To Channel
  17. EDI - Electronic Data Interchange
  18. EOQ - Economic Order Quantity
  19. ERP - Enterprise Resource Planning
  20. ETO - Engineered to Order
  21. FAN - Flu Alert Network
  22. FEFO - First Expire First Out
  23. FG - Finished Goods
  24. FMCG - Fast Moving Consumer Goods
  25. FSI - Free Standing Insert , AKA "Coupon"
  26. IBP - Integrated Business Planning
  27. IO - Inventory Optimization
  28. JIT - Just In Time
  29. KPI - Key Performance Indicator
  30. LTL - Less than Truck Load
  31. MAPE - Mean Absolute Percent Error a cross-sectional measure to calculate the demand forecast error across products, customers, divisions etc.
  32. MAD - Mean Absolute Deviation, similar to MAPE before it becomes a percentage error. Academics respect this measure, largely due to confusion and mis-interpretations around the MAPE.
  33. MRP - Materials Requirements Planning
  34. MTD - Month to date
  35. MTG - Month to Go
  36. MTO - Made to Order, a type of production and inventory strategy that starts the manufacturing process only on receipt of the customer order. The manufacturer has the luxury of making the customer order, (and perhaps pay) and wait. Dell is a classic example of a MTO business model.
  37. MTS - Made to Stock, a production and replenishment model that keeps inventory of products, anticipating customer orders.
  38. OEM - Original Equipment Manufacturer
  39. OLS - Ordinary Least Squares, the most basic methodology for model fitting by choosing the model that minimizes the residual error.
  40. OTC - Over the Counter
  41. PMAD - Percent Mean Absolut
  42. POS - Point of Sale
  43. POP - Point of Purchase
  44. RMSE - Root Mean Squared Error, a measure of model diagnostic and with more application in inventory management to set parameters for safety stock calculations.
  45. S&OP - Sales and Operations Planning
  46. SCOR - Supply Chain Operations Reference Model
  47. S&OP -Sales and Operations Planning
  48. SIOP -Sales, Inventory and Operations Planning
  49. SKU - Stock Keeping Unit
  50. SNP -Supply Network Planning
  51. SMI -Supplier Managed Inventory, very similar to VMI except here the manufacturer lets their inventories be managed by a supplier of key components and input products.
  52. VMI -Vendor Managed Inventories, where the supplier or manufacturer monitors the inventory at the customer warehouse on a continuous basis and writes the orders on behalf of the customer to ensure warehouses are adequately stocked.
  53. WIP - Work in Process
  54. WAPE - Weighted Absolute Percent Error - The same as weighted MAPE