Glossary of Terms
31. Pareto Principle
The heuristic rule which states that where there is a large number of contributors to a result, the majority of the result is due to a minority of the contributors.. Sometimes known as the 80/20 rule) which states that, in many cases, approximately 80% of the turnover (stock etc.) can be ascribed to approximately 20% of the customers, articles or orders. The actual ratio in a particular case can be determined by ranking the customers and products etc. in order of magnitude and then calculating what percentage of the turnover (stock etc.) corresponds to 10%, 20% 30% etc. of the customer and products etc. The basis of ABC analysis. Source: http://www.ciltuk.org.uk/process/glossary.asp?P
32. Periodic Inventory
An inventory control system classification for independent demand items where the number of items held is reviewed at a fixed time interval and the size of any resultant order depends on the stock on hand at the time of the review.
Source: http://www.ciltuk.org.uk/process/glossary.asp?P
33. Picking List
An output from an inventory control system designating those items, by part number, description and quantity, to be picked from stock to satisfy customer demand. Source: http://www.ciltuk.org.uk/process/glossary.asp?P
34. Pull System
A system where orders for an end item are pulled through the facility to satisfy demand for the end item. An examples of pull system is the JIT Kanban process.
Source: http://www.ciltuk.org.uk/process/glossary.asp?P
35. Purchase Order
A document used by the Purchasing Department to formalise a purchase transaction with a vendor/supplier.
36. Push System
A system where orders are issued for completion by specified due dates, based on estimated lead-times, or where the flow of material in a product structure is controlled and determined by the lower levels.
Source: http://www.ciltuk.org.uk/process/glossary.asp?P
37. Retailer
A retailer is an individual or firm that sells goods and services directly to the consumer.
38. RFID
Radio Frequency Identification.
Refers to the technology that uses devices attached to objects that transmit data to an RFID receiver. These devices can be large pieces of hardware the size of a small book like those attached to ocean containers or very small devices inserted into a label on a package.
RFID has advantages over bar codes such as the ability to hold more data, the ability to change the stored data as processing occurs, does not require line-of-sight to transfer data and is very effective in harsh environments where bar code labels won't work.
Source: http://accuracybook.com/glossary.htm#R
39. Safety Stock
Safety stock is inventory that is held on hand to cover demand while waiting for the product to be ordered and delivered, and to accommodate any variations in delivery or demand.
40. Shipping
The transportation of goods from the organisation to the customer.
41. Supplier
An organisation that sells goods or services.
42. Transaction
The agreement between a buyer and a seller to exchange products or services for payment. It is also the recording of a material movement or an adjustment event that impacts on a stock position.
43. Wholesaler
A wholesaler is a go-between who sells products to retailers and industrial buyers but (generally) not to individual consumers.
44. WMS
Warehouse Management System. Computer software designed specifically for managing the movement and storage of materials throughout the warehouse.