ERP Glossary - A: ASRS to Average Cost

ASRS

Automated storage retrieval systems- Robotic warehousing bin storage and retrieval systems, utilizing optic sensors, automated materials handling systems, and sophisticated computer software. Reliability issues and high upkeep costs have diminished the enthusiasm for this technology somewhat.

Assets

Anything with positive value, meaning it could be sold - in the long or short term - and turned into cash. Assets can be physical entities, like factories, capital equipment, raw materials, or intangible, such as brand name, accounts receivable, or intellectual property

ATO (Assemble to Order)

Assemble to order is a manufacturing strategy aimed at providing a high level of customization options, relatively short lead times, and low inventory risk by being able to combine a finite amount of sub assemblies into an exponential number of possible permutations. A good example is Dell Computer, which offers multiple performance options on almost every component.

AutoCAD

Computer aided design, or computer aided drafting, the acronym CAD refers to any computer aided functionality that help draw specs and blueprints. While AutoCAD is often used in this generic context, it is actually a trademarked name of a specific software application in this field.

Available To Promise

The mathematical process for calculating a delivery date when finished inventory is not available, taking into account other orders, work in process inventory, and existing work orders and purchase orders.

Average cost

Average cost is the numerical result of dividing total costs by total units, also known as unit costs. The concept of average costs is primarily beneficial in understanding how fixed costs are amortized.

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Phil Marshall

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Phil Marshall