Lexicon

Welcome to AHRMM's healthcare supply chain Lexicon. This database contains terms used throughout the healthcare supply chain field. Simply click on the link to access the entire definition.

AHRMM thanks Kate Vitasek and Supply Chain Visions for their contribution of certain terms to the Lexicon. Terms supplied by Supply Chain Visions are used with permission. Supply Chain Vision’s Glossary of Supply Chain Management Terms appears on the Council of Supply Chain Management Professionals website. AHRMM also acknowledges Michael B. Neely with Perimeter Solutions Group for his role in developing healthcare-specific terms.

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  • 80-20 Rule

    A term referring to the Pareto principle. The principle suggests that most effects come from relatively few causes; that is, 80% of the effects (or sales or costs) come from 20% of the possible causes (or items). Also see: ABC Classification, Pareto
  • 80-20 Rule

    A term referring to the Pareto principle. The principle suggests that most effects come from relatively few causes; that is, 80% of the dollars of products purchased come from 20% of the number of products used.
  • A/P

    See Accounts Payable
  • A/R

    See Accounts Receivable
  • A3 Method

    The A3 system is a means of describing a business process in a compact form. It was originally created by the Toyota Motor Corporation and was named for the paper size on which it was printed: A3 (11" x 17"). Toyota used the A3 methodology to help develop its famed Toyota Production System (TPS).
  • Abandonment

    (1) The decision of a carrier to give up or to discontinue service over a route. Railroads must seek ICC permission to abandon routes. (2) As in the phrase "call abandonment". This refers to people who, being placed on hold in an incoming call, elect to hang up ("abandon") the call. Call centers monitor closely the "abandonment rate" as a measure of their inefficiency.
  • ABB

    See Activity Based Budgeting