Commonly Used Terms
Agglomeration
What is agglomeration?
Agglomeration refers to the phenomenon of clusters of business activity as a result of firms being located close to each other. Agglomeration can be described as a process that concentrates economic activity in one place to make businesses more productive.
The role and nature of agglomeration economies
- Shared resources: the firms that are located close to each other in an agglomeration economy share infrastructure, facilities, suppliers, and workers. Transports networks, as well as telecommunications infrastructure, is valuable depending on the density of the network. As the size of an agglomeration economy increases, so does the opportunity for intermediate suppliers to offer goods and services.
- Matching: agglomerate economies having large and diversified markets have better matches between employers and employees as well as firms and intermediate suppliers. This significantly reduces cost because it widens the scope of business activity, thus providing better employment opportunities.
- Learning: knowledge exchange is considered critical to growth and innovation in rapidly changing industries. When a firm becomes a part of an agglomeration, it goes through a learning process that helps the firm operate in the most effective manner.
Disadvantages of agglomeration
Although agglomerate economies boost the economy, they can also have a detrimental effect in the following ways :
- Environmental effect: clusters of business activity in metro cities contribute significantly to pollution, traffic, and other externalities that occur by clustering of a population of firms.
- Competition: because of the closely clustered business activity, firms often find themselves in losses because of increased competition
- Overburdened infrastructure: the accumulation of businesses in certain areas can cause a strain on the infrastructure.
- Corruption: because of the highly competitive nature of the economy, firms often find that they resort to other illegal methods in order to earn profits.
A
Average Payment Period (for materials)
Average Inventory
Average Cost per Unit
Accounts Payable
Available to Sell (ATS)
Available to Promise (ATP)
Available Inventory
Automatic Rescheduling
Automatic Relief
Automated Storage-Retrieval System (AS-RS)
Automated Manifest System (AMS)
Automated Guiding Vehicle System (AGVS)
Automated Commercial Environment (ACE)
Automated Clearing House (ACH)
Automated Call Distribution
Automated Broker Interface (ABI)
Auditing
Audit Trail
Audit Ability
Audit
Attributes
Attachment
Assumed Receipt
Association of American Railroads
Assignment
Assemble-to-order
Arrival Notice
Approved Vendor List (AVL)
Appraisal Costs
Any Quantity Rate (AQ)
Anticipation Inventories
Anticipated Delay Report
Anti-Dumping Duty
ANSI Standard
Amtrak
American Waterways Operators
American Trucking Association (ATA)
American Standard Code for Information Interchange
American Society of Transportation & Logistics
American Society for Training and Development (ASTD)
American Society for Testing and Materials (ASTM)
American Society for Quality (ASQ)
American National Standards Institute (ANSI)
American Customer Satisfaction Index (ACSI)
Alternate Routing
Alpha Release
Allocation
Allocated Item
All Risks
All Cargo Carrier
Alaskan Carrier
Airport and Airway Trust Fund
Airline Terminal Fee (ATF)
Air Waybill
Air Transport Association of America
Air Taxi
Air Cargo Containers
Air Cargo
Agility
Agile Manufacturing
Aggregate Tender Rate
Aggregate Planning
Aggregate Plan
Aggregate Inventory Management
Aggregate Inventory
Aggregate Forecast
Agglomeration
Agent
Agency Tariff
After Sale Service
Advanced Shipping Notice
Advanced Planning and Scheduling (APS)
Advance Material Request
Adaptive Smoothing
Adaptive Control
Actual to Theoretical Cycle Time
Actual Demand
Actual Cost System
Actual Cost
Activity Ratio
Activity Network Diagram
Activity Level
Activity Driver
Activity Dictionary
Activity Based Planning (ABP)
Activity Based Management (ABM)
Activity Based Costing System
Activity Based Costing Model
Activity Based Costing (ABC)
Activity Based Budgeting (ABB)
Activity Analysis
Activity
Active Inventory
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