Glossary of Terms
16. Distributor
A distributor is a business that does not manufacturer its own products, but stores and ships products that are manufactured by other organisations. Usually distributors are able to buy in bulk and sell in smaller quantities for a higher unit price.
17. Double Deep Racking
Pallet racking designed to allow storage of pallets two-deep. Requires use of a double-deep reach truck to place and extract loads. Source: http://accuracybook.com/glossary.htm#D
18. DRP
Distribution Requirements Planning.
Software used to plan inventory requirements in a multiple plant/warehouse environment. DRP may be used for both distribution and manufacturing. In manufacturing DRP will work directly with MRP. DRP may also be defined as distribution resource planning, which also includes determining labor, equipment, and warehouse space requirements.
Source: http://accuracybook.com/glossary.htm#D19. Economic Order Quantity (EOQ)
In fixed order quantity systems, the size of an order that minimises the total inventory cost, under a given set of circumstances, obtained by trade off analysis between the cost of placing an order and the cost of holding stock.
Source: http://www.ciltuk.org.uk/process/glossary.asp?E
20. EDI
Electronic Data Interchange. EDI is a standard format for exchanging business data. This data is transmitted from computer to computer, direct, and without any manual intervention (without assistance from people).
21. ERP
Enterprise Resource Planning
A further extension of MRP II whereby a single system embraces and integrates all aspects of business operations into a single database application.
Source: http://www.ciltuk.org.uk/process/glossary.asp?E
22. Finished Goods
Inventory to which value has been added through manufacturing.
23. General Ledger
A book in which monetary transactions of a business are posted (in the form of debits and credits) from a journal. It is the final record from which financial statements are prepared. The general ledger accounts are often the control accounts which report.
Source: www.abcsmallbiz.com/reference/ glossary/glossary_efg.html
24. Holding Cost
The cost associated with holding one unit of an item in stock for one period of time incorporating elements to cover: Capital costs for stock; Taxes; Insurance; Storage; Handling; Administration; Shrinkage; Obsolescence; Deterioration.
Source: http://www.ciltuk.org.uk/process/glossary.asp?H
25. In-process Goods
Partially completed final products that are still in the production process either as a stock of partially completed work or the queue of material waiting for further processing. Source: http://www.ciltuk.org.uk/process/glossary.asp?I
26. Integration
To make part of a larger unit or to join with something else.
27. Inventory Management
Inventory management is all the activities and procedures used to control and maintain the right amount of each item in stock or to provide the required level of service at minimum cost. Inventory managers need to balance customer satisfaction (achieved through the holding of inventory) with the cost of holding too much inventory.
28. Inventory Turn
An inventory turn is the number of times inventory turns over during a one year period. It is calculated by dividing the average inventory level (cost of average level of inventory) into the annual inventory usage (cost of all inventory sold).
29. Lead Time
Amount of time required for an item to be available for use from the time it is ordered. Lead-time should include purchase order processing time. It is the time from when a need is determined by the customer, to the time that the customer pays the invoice.
30. Logistics
The science (and art) of ensuring that the right products reach the right place in the right quantity at the right time to satisfy customer demand.