This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
8/12/2019 19939405 Code 305 Understanding Terms Associated With Logistics
Although every effort is made to ensure accuracy andcompleteness of the information, it is understood that there isno warranty as to the accuracy or completeness of suchinformation and assumes no liability for any damages or losssuffered as a result of any inaccuracy or incompleteness
therein. These explanations are intended to provide the entrants to thesubject with a basic understanding of as many technical terms.
These explanations are not regulations or rules with the forceof law.
As difficult or detailed questions arise, the participant should
seek clarification from their manager or supervisor, rather thanattempting to derive precise guidance from these generalexplanations.
8/12/2019 19939405 Code 305 Understanding Terms Associated With Logistics
Activity-Based Costing (ABC) An accounting system that measures the cost and performance of
specific activities performed in an organization.
Advanced Shipment Notice (ASN) etailed shipment information transmitted to a customer or consignee
in advance of delivery, designating the contents and nature of theshipment. !ay also include expected time of arrival.
Average Inventory The average inventory level over a period of time.
Back rder "roduct ordered but out of stock and promised to ship when the
product becomes available.
Backha!"
The return movement of a vehicle from its original destination to itsoriginal point of origin, especially when carrying goods back over allor part of the same route.
8/12/2019 19939405 Code 305 Understanding Terms Associated With Logistics
manufactured, packaged, stored, and ready for distribution.
,i.ed Costs % #osts which do not fluctuate with business volume inthe short run.
,B (,ree on Board) % #ontractual terms between a buyer and a
seller which define where title transfer takes place.
,B &estination % Title passes at destination, and seller has totalresponsibility until shipment is delivered.
,B rigin % Title passes at origin, and buyer has total responsibilityover the goods while in shipment.
,oreign Trade /one (,T/) % An area or zone set aside at or near aport or airport, under the control of the -.$. #ustoms $ervice, forholding goods duty%free pending customs clearance.
8/12/2019 19939405 Code 305 Understanding Terms Associated With Logistics
Inventory Carrying Costs A financial measurement that calculates all the costs associated with holding
goods in storage, usually expressed as a percentage of the inventory value. (tincludes inventory%in%storage, warehousing, obsolescence, deterioration orspoilage, insurance, taxes, depreciation, and handling costs.
Inventory &ep"oyment A technique for strategically positioning inventory to meet customer service
levels while minimizing inventory and storage levels. 0xcess inventory isreplaced with information derived through monitoring supply, demand andinventory at rest as well as in motion.
Inventory 2anagement The process of ensuring the availability of products through inventory
administration.
Inventory T!rns The cost of goods sold divided by the average level of inventory on hand. This
ratio measures how many times a company+s inventory has been sold during aperiod of time. *perationally, inventory turns are measured as total throughputdivided by average level of inventory for a given period.
Inventory +e"ocity The speed with which inventory moves through a defined cycle &i.e., from
receiving to shipping'.
8/12/2019 19939405 Code 305 Understanding Terms Associated With Logistics
4!st-In-Time (4IT) An inventory control system that controls material flow into assembly
and manufacturing plants by coordinating demand and supply to thepoint where desired materials arrive just in time for use.
5itting 1ight assembly of components or parts into defined units.
Less-Than-Tr!ck"oad (LTL) Carriers Trucking companies that consolidate and transport smaller &less than
truckload' shipments of freight by utilizing a network of terminals and
relay points.
Logistics According to the #ouncil of 1ogistics !anagement !', logistics is
the process of planning, implementing, and controlling the efficient,effective flow and storage of goods, services, and related informationfrom point of origin to point of consumption for the purpose of
conforming to customer requirements.2argina" Cost The cost to produce one additional unit of output. The change in total
variable cost resulting from a one%unit change in output.
8/12/2019 19939405 Code 305 Understanding Terms Associated With Logistics
#repaid A freight term which indicates that charges are to be
paid by the shipper.
#resent +a"!e Today+s value of future cash flows, discounted at an
appropriate rate.
#rocess Improvement esigns or activities which improve quality or reduce
costs, often through the elimination of waste or non%value%added tasks.
#roo$ o$ &e"ivery (#66&6)
(nformation supplied by the carrier containing the nameof the person who signed for the shipment, the time anddate of delivery, and other shipment delivery relatedinformation.
8/12/2019 19939405 Code 305 Understanding Terms Associated With Logistics
Tari$$ A tax assessed by a government on goods entering or leaving a
country. The term is also used in transportation in reference to thefees and rules applied by a carrier for its services.
Third #arty Logistics Transportation, warehousing and other logistics related services
provided by companies employed to assume tasks that werepreviously performed in%house by the client.
Thro!ghp!t
A measure of warehousing output volume &weight, number of units'.Also, the total amount of units received plus the total amount of unitsshipped, divided by two.
Time-&e$inite Services elivery is guaranteed on a specific day or at a certain time of the
day.
T,C Trailer%on%flat car &piggyback'.
8/12/2019 19939405 Code 305 Understanding Terms Associated With Logistics
Tota" Average Inventory Average normal use stock, plus average lead stock, plus safety stock.
Tota" Cost Ana"ysis
A decision%making approach that considers minimization of total costsand recognizes the interrelationship among system variables such astransportation, warehousing, inventory, and customer service.
Tracking and Tracing !onitoring and recording shipment movements from origin to
destination.
Tra$$ic 2anagement The management and controlling of transportation modes, carriers
and services.
Transit Time
The total time that elapses between a shipment+s pickup and delivery.
Tr!ck"oad Carriers (TL) Trucking companies which move full truckloads of freight directly from
the point of origin to destination.
8/12/2019 19939405 Code 305 Understanding Terms Associated With Logistics