General Agreement on Tariffs and Trade : GATT for short. A multilateral trade agreement aimed at expanding international trade as a means of raising world welfare. General-commodities carrier : A common motor carrier that has operating authority to transport general commodities, or all commodities not listed as special ones. Lead time : the time interval from order placing to order arrival. Load factor : a measure of operating efficiency used by air carriers to determine a plane’s utilized capacity percentage or the number of passengers over the total number of seats. Log book : a daily record of the hours an interstate driver spends driving, off duty, sleeping in the birth, or on duty but not driving. Lot size : the quantity of goods a company purchases or produces in anticipation of future use or sale. Line-haul shipment : a shipment that moves between cities and over distances more than 100 to 150 miles in length. Inventory in-transit : inventory that has been ordered, but has not arrived at the warehouse yet. Inventory position : current in-stock inventory plus inventory in-order; (s, S) policy : an inventory management policy in which a replenishment order is placed whenever the inventory position falls below a threshold level s to make the inventory position back up to S . Re-order point : a threshold inventory point at which a replenishment order is placed. Marginal cost : the cost of producing one additional unit of product. Order cycle : The time from an order is received to its actual delivery. Another definition from the order fulfiller’s perspective is the time from order received to order assembled. Order Processing : The activities associated with filling customer orders. Order Cost : The cost of placing an inventory order with a supplier. Outsource : Getting a third party to provide a function that was historically performed in house. 4 Many of the terms are based on Speaking the Language of Freight and Logistics by Wilbur Smith Associates published in 2007.
Logistics Training Course for the Public Sector Freight Planners. Do not Distribute without Permission. National Center for Freight and Infrastructure Research and Education ( C FIRE) University of Wisconsin – Madison. Instructor: Bruce X. Wang and Ernie Wittwer. - 50 - Pallet : A platform device used for moving and storing goods. A forklift truck is used to lift and move the loaded pallet. It is an efficient means to handle goods movement. Safety stock : stock that is constantly carried to prevent from stockout due to unexpected spike of demand. Economic lot size model : Also called EOQ model as introduced in the text. It decides the order quantity for inventory replenishment. Continuous review policy : An inventory management policy which assumes a capability of continuous review of inventory position.