Glossary

Computer security function designed to protect the files and programs on one network from the unauthorized access by users on another network.

A manufacturing order that reserves capacity and allocates material but, unlike a work order, has not been authorized for release to the production floor.

An inventory and accounting method in which assets produced or acquired first are sold, used, or disposed of first.

Describes a service or product that gains a competitive advantage by being the first to market with a product or service and establishes a strong market share.

Costs that do not change with an increase or decrease in the number of goods or services produced or sold.

Part of an inventory control system with minimum and maximum levels and that specifies a set reorder point when a minimum inventory level is reached.

Part of Fixed Costs. In manufacturing, costs (except direct labor and direct materials) that continue even if products are not produced.

Reorder system where a company orders the same quantity each time it places an order for an item.

A trailer with no sides, often used to carry large or unpalletized objects such as heavy machinery, raw materials, etc..

A railroad freight car (rolling stock) with no sides and an open flat deck. Also called a flat car.

A company's ability to respond quickly and efficiently to changes in customer and consumer demands.

The use of multi-purpose equipment, skilled workers, and innovative management to accommodate the continuous change that occurs in the marketplace.

Materials handling devices such as hand trucks and forklifts.

An airline code consisting of a two-character airline designator and then 1 to 4 digits that represent the number of the voyage.

The time it takes for documents, payments, etc. to get from one trading partner to another.

Goods shipped to retailers with all necessary tags, prices, security devices, etc. already attached so goods can move rapidly through DCs and/or received at stores.

Storage method where the product is presented to picking operations at one end and replenished from the opposite end of a rack, often inclined and with rollers.

A distribution center process where products from multiple locations are received at the DC, re-sorted by delivery destination, and then immediately shipped out.

Carrier engaged in the transportation of goods for compensation, regulated by the federal government, and must meet certain safety and insurance requirements.

In logistics, an estimate of future demand after completing the process of forecasting. See Forecasting.

Using quantitative and qualitative methods to predict product quantities that will be purchased by customers. The result of forecasting is a forecast of demand.

U.S. Customs site for holding goods duty-free pending clearance or an area where imported goods are exempt from duties until withdrawn for domestic sale or use.

A machine used to raise and lower freight on pallets or skids and to move the freight to different warehouse locations. Also called a Lift Truck.

Making changes to a product's physical appearance to increase the value of a product for the consumer.

See Consolidator's Bill of Lading.