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ABC Classification
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- Classification of a group of items in decreasing order of annual dollarvolume or other criteria. This array is then split into three classes called A, B, and C. The Agroup represents 10 20% by number of items and 50 70% by projected dollar volume....
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Assumed Receipt
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- The principle of assuming that the contents of a shipping or delivery note are correct. Shipping and receiving personnel do not check the delivery quantity. Used inconjunction with bar codes and an EDI-delivered ASN to eliminate invoices....
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Back Order
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- Product ordered but out of stock and promised to ship when the product becomes available....
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Backflush
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- The deduction from inventory record of the component parts used in an assembly or subassembly by exploding the bill of materials by the production count of assemblies produced....
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Carrier
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- A firm, which transports goods or people....
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Cash-to-Cash Cycle Time
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- The time it takes for cash to flow back into a company after it has been spent for raw materials....
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Catalog Channel
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- A call center or order processing facility that receives orders directly from the customer based on defined catalog offerings and ships directly to the customer; order information in this channel may be transmitted by electronic means. These means may include EDI, brokered systems, or linked electronic systems....
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Days of Supply
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- Measure of quantity of inventory-on- hand, in relation to number of days usage which will be covered....
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Dedicated Contract Carriage
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- A third-party service that dedicates equipment (vehicles) anddrivers to a single customer for its exclusive use on a contractual basis....
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Economic Order Quantity (EOQ)
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- An inventory model that determines how much to order bydetermining the amount that will meet customer service levels while minimizing total ordering and holding costs....
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Efficient Consumer Response (ECR)
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- A demand driven replenishment system designed to link all parties in the logistics channel to create a massive flow-through distribution network. Replenishment is based upon consumer demand and point of sale information....
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Electronic Data Interchange (EDI)
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- Intercompany, computer-to-computer transmission of business information in a standard format. For EDI purists, "computer-to-computer" means direct transmission from the originating application program to the receiving, or processing,application program, and an EDI transmission consists only of business data, not any accompanying verbiage or free-form messages....
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End-of-Life Inventory
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- Inventory on hand that will satisfy future demand for products that are no longer in production at your entity....
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Field Finished Goods
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- Inventory which is kept at locations outside the four walls of the manufacturing plant (i.e., distribution center or warehouse)....
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Field Service Parts
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- Parts inventory kept at locations outside the four walls of the manufacturing plant (i.e., distribution center or warehouse)....
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