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intro log
| Term | Definition |
|---|---|
| Inventory Accuracy | how closely system records match physical counts |
| Shrinkage | loss of inventory due to theft, damage, or errors |
| Obsolescence | inventory that loses value due to age or changes in demand |
| Safety Stock | extra inventory held to protect against uncertainty |
| Reorder Point (ROP) | inventory level at which a new order must be placed |
| EOQ (Economic Order Quantity) | optimal order size that minimizes total cost |
| Demand Components | trend |
| Qualitative Forecasting | based on judgment, not numbers |
| Quantitative Forecasting | based on historical data |
| Collaborative Forecasting | combining input from multiple departments |
| S&OP (Sales & Operations Planning) | cross‑functional planning process |
| Bill of Material (BOM) | list of components needed to assemble a product |
| Material Requirements Planning (MRP) | system that calculates material needs based on BOMs and forecasts |
| Capacity Planning | determining if production resources can meet demand |
| Slotting | assigning optimal storage locations in a warehouse |
| Pick Path Optimization | minimizing walking distance for order pickers |
| Put‑Away | storing received goods in assigned warehouse locations |
| Dock‑to‑Stock Time | time from receiving goods to being ready for picking |
| Turnover Ratio | how many times inventory cycles per year |
| ABC Classification | ranking inventory by value (A |
| Vendor‑Managed Inventory (VMI) | supplier manages customer’s inventory levels |
| 3PL (Third‑Party Logistics Provider) | outsourced logistics provider offering transportation, warehousing, fulfillment, etc. |
| 4PL (Fourth‑Party Logistics Provider) | manages entire supply chain on behalf of the client; more strategic than 3PL |
| IMC (Intermodal Marketing Company) | specializes in arranging rail + truck intermodal moves |
| Dray Carrier | trucking company that handles short‑haul container moves |
| Freight Audit | checking freight bills for accuracy |
| Chargeback | financial penalty for non‑compliance (late delivery, wrong labels, etc.) |
| Compliance Requirements | retailer‑specific rules suppliers must follow |
| Kitting | assembling multiple items into a single package (e.g., gift baskets) |
| Postponement Strategy | delaying final assembly until closer to the customer |
| Cross‑Functional Conflict | manufacturing wants long runs; finance wants low inventory; sales wants high inventory; warehouse has limited space |
| Bullwhip Effect | small changes in demand create large swings upstream |
| Extended Supply Chain Risk | longer global chains |
| Environmental Pressures | pollution, climate change, sustainability requirements |
| Urbanization Impact | more congestion, more last‑mile challenges |
| Aging Workforce | labour shortages in transportation and warehousing |
| Energy Co- Sensitivity | fuel prices heavily impact logistics costs |
| Security Requirements | customs, inspections, anti‑terrorism measures |
| Global Trade Shifts | rise of Asia, changing import/export flows |
| SCM (Supply Chain Management) | coordination of all activities involved in sourcing, procurement, conversion, and logistics |
| Logistics vs Supply Chain | logistics is a subset of supply chain; supply chain is broader |
| Nodes | physical locations in a supply chain (factories, DCs, stores) |
| Links | transportation connections between nodes |
| Inbound Logistics | movement of materials into a company |
| Outbound Logistics | movement of finished goods to customers |
| Reverse Logistics | handling returns, recycling, repairs, disposal |
| Freight Forwarder | arranges transportation on behalf of shippers |
| Customs Broker | handles import/export documentation and compliance |
| LTL (Less‑than‑Truckload) | shipment that does not fill a full truck; consolidated with others |
| FTL (Full Truckload) | shipment that fills an entire truck; faster, fewer touches |
| Economies of Scale | cost advantages gained by producing or shipping in larger quantities |
| Economies of Distance | cost per km decreases as distance increases (rail, truck) |
| Break‑Bulk | separating a large shipment into smaller ones |
| Consolidation | combining small shipments into a larger one |
| Cross‑Docking | goods move from inbound to outbound trucks with little/no storage |
| Intermodal Transportation | using two or more modes (e.g., rail + truck) in one shipment |
| Drayage | short‑distance trucking (e.g., port to rail yard) |
| Lead Time | total time from order to delivery |
| Cycle Time | time to complete one process cycle (e.g., picking an order) |
| SKU (Stock Keeping Unit) | unique product identifier |
| Stockout | running out of inventory |
| Backorder | order placed but not fulfilled due to stockout |
| Fill Rate | percentage of customer demand met without stockouts |
| Perfect Order | delivered on time, complete, damage‑free, and with correct documentation |
| Service Level | probability of not hitting a stockout |
| Dead Stock | inventory that will never sell |
| Obsolete Inventory | outdated or expired inventory |
| Carrying Cost % | typically 20–30% of inventory value per year |
| Freight Class | classification system for LTL pricing |
| Bill of Lading (BOL) | legal document between shipper and carrier |
| Inventory Control | ensuring accurate records of what inventory is on hand |
| Inventory Record Accuracy | how closely system records match physical inventory |
| RFID | radio frequency identification used to track inventory automatically |
| Book Value of Inventory | the quantity the computer system believes is in stock |
| Physical Inventory | the actual counted inventory in the warehouse |
| Cycle Counting | counting a small number of items daily to maintain accuracy |
| Periodic Physical Inventory | full warehouse count once per year |
| Sourcing | finding and selecting suppliers for materials and services |
| Materials Handling | moving, protecting, and controlling goods inside a warehouse |
| Packaging | preparing goods for storage, handling, and shipping |
| Unitization | combining smaller units into a single load (e.g., pallets) |
| Forecasting | predicting future demand using historical data and trends |
| Production Planning | determining how many units to produce to meet forecasted demand |
| CSCMP Definition of Forecasting | prediction of future customer demand using quantitative and qualitative methods |
| APICS Definition of Forecasting | estimating future demand based on intrinsic/extrinsic factors and demand components (trend, seasonal, cyclical, random) |
| Extended Supply Chains | long global supply chains that increase risk exposure |
| Comparative Advantage | producing goods more efficiently than competitors |
| Collaboration | working with internal and external partners to support supply chain flow |
| Internal Collaboration | logistics working with marketing, finance, sales, production, HR |
| External Collaboration | logistics working with suppliers, carriers, 3PLs, customers |
| Conflicting Department Goals | manufacturing wants long runs; finance wants low inventory; sales wants high inventory; warehouse has limited space |
| JIT (Just‑in‑Time) | producing or delivering goods only when needed to reduce inventory |
| KPIs (Key Performance Indicators) | measurable metrics used to evaluate supply chain performance |
| Energy Costs | major driver of transportation and logistics expenses |
| Global Trade Patterns | shifting trade flows (e.g., rise of Asia, North Pacific corridor) |
| Demographics | aging population affecting labour and transportation needs |
| Urbanization | cities becoming economic hubs requiring strong transportation links |
| Environmental Concerns | pollution, climate change, habitat loss affecting logistics planning |
| Technology Trends | automation, sensors, digital systems, new materials reshaping logistics |
| Supply Chain Security | protecting goods from geopolitical risks, terrorism, and disruptions |
| Natural Disaster Risk | supply chains must prepare for extreme weather, fires, floods, earthquakes |
| Supply Chain | the network of organizations, people, activities, information, and resources involved in moving a product from raw materials to the final customer |
| Logistics | the planning, implementation, and control of the efficient flow and storage of goods, services, and information from origin to consumption |
| Seven Rs of Logistics | Right product |
| Utility | the value a product gains as it moves through the supply chain |
| Form Utility | value added by changing the product into a usable form |
| Place Utility | value added by moving goods to where customers need them |
| Time Utility | value added by having goods available when customers need them |
| Possession Utility | value added by enabling customers to take ownership of goods |
| Transportation | the physical movement of goods between locations |
| Five Modes of Transportation | Road |
| Road Transportation | flexible, widely used, ideal for short/medium distances |
| Rail Transportation | low cost for bulk goods, long distances, container‑friendly |
| Marine Transportation | lowest cost per unit, essential for global trade |
| Air Transportation | fastest mode, ideal for high‑value or urgent goods |
| Pipeline Transportation | specialized mode for liquids and gases |
| Warehousing | storing goods until needed, managing space, accessibility, and rotation |
| WMS (Warehouse Management System) | software that manages warehouse operations, space, and inventory accuracy |
| Inventory | goods held for future use or sale |
| Inventory Rotation | FIFO or FEFO methods to prevent spoilage |
| Logistics Goal | maximize customer satisfaction while minimizing cost |
Created by:
kfroeli4