470 Set

Distribution Requirements Planning (DRP)

A strategy designed to calculate the need to replenish inventory at branch warehouses, providing stock visibility and location planning.

Just-in-Time (JIT)

A manufacturing and inventory strategy focused on receiving goods exactly when needed to minimize holding costs.

Indirect via wholesaler

The correct distribution channel where wholesalers purchase goods in bulk and distribute smaller quantities to retailers.

Rail freight

The most resilient and reliable land-based transport mode during inclement weather.

Horizontal collaboration

A strategy where organizations at the same supply chain tier partner to share resources and improve efficiency.

Back Hauling

A logistics practice where a truck picks up a new load on its return trip to eliminate empty runs.

Cross-docking

A logistics strategy where materials are directly transferred from inbound to outbound transportation with minimal storage.

Fourth-party logistics (4PL)

A strategic partner and integrator that manages the entire supply chain network.

Road freight

The only feasible transport option for direct deliveries to individual residences and storefronts.

Globalization complexities

Variables introduced in supply chains on a global scale that contribute to inconsistent transit times.

Total logistics concept (TLC)

An approach that views the entire supply chain as one cohesive system.

Perishable goods

Items with short shelf lives that require rapid distribution networks.

Cost leadership

The aim of competing primarily by offering lower prices through reduced inventory levels.

Online matching of shippers and carriers

The key characteristic of a digital freight exchange connecting companies with transport operators.

Supply Chain 4.0

The application of Industry 4.0 technologies to automate processes and optimize logistics decisions.

Most Favoured Nation (MFN) principle

The international principle ensuring equal treatment of imported goods from different countries.

Value Added Tax (VAT)

A tax that a company is required to pay upon importing goods into the EU.

Anti-dumping duty

A duty applied to offset the impact of imported goods sold below fair market value.

Excise duty

Duties typically applied to goods like alcohol, tobacco, and fuel.

Sanitary and Phytosanitary (SPS) Agreement

A WTO agreement to protect plants, animals, and humans from diseases and pests.

Incoterms

The document defining buyer and seller responsibilities for delivery, risks, and costs in international trade.

Market and consumer protection

Controls ensuring imported goods meet safety and labeling standards.

Tariff quota

Allows a limited quantity of goods to be imported at a reduced tariff rate.

Coordinated Border Management

A main goal is to improve enforcement and reduce trade compliance costs.

Threats to public security

A significant risk of poor border performance.

World Customs Organization (WCO)

The agency providing the SAFE Framework to secure supply chains.

Customs broker or freight forwarder

Engaged to delegate compliance obligations Maciant.

Veterinary control check

Checks applied primarily to imported live animals.

Supplier-to-customer cooperation

NOT a part of the WCO SAFE Framework.

Customs tariff

A tariff that applies to imports and is a percentage of value.

Threat to national income

A risk of poor cross-border logistics compliance.

Environmental and health control policies

Policies preventing the import of ozone-depleting substances.

Customs

The agency responsible for collecting tariffs and controlling goods at the border.

AEO-type programs

Programs that encourage partnership between customs authorities and businesses.

Countervailing measures

Applied to offset unfair subsidies on imported goods.

Safety stock

The inventory type maintained to avoid stockouts from demand fluctuations.

Build speculative stock

An inventory strategy a buyer should adopt when raw material costs are forecasted to sharply increase.

ABC analysis

A method for classifying items by value and usage.

Work-in-progress (WIP)

Inventory held between production stages.

Safety stock

The inventory directly linked to demand variability.

D items

Classification likely including unsold seasonal items.

Seasonal stock

The inventory type a bakery increases ahead of a holiday.

Reduce average inventory

The most effective action for reducing carrying costs.

Exponential smoothing

The forecasting method that weights recent demand heavily.

Mean Absolute Deviation (MAD)

The metric comparing actual demand to forecasted demand.

Share real-time demand data

The strategy that best reduces the bullwhip effect.

Bullwhip effect

When a business overreacts to a small drop in demand, ordering extra supply.

Collaborative forecasting

The method to plan for products with unpredictable demand.

Economic Order Quantity (EOQ)

The method that balances ordering and holding costs.

Fixed reorder point

The inventory system that reorders when stock hits a set level.

Push system

A system where deliveries occur at set times regardless of demand.

Make-to-order

A manufacturing approach making products only after receiving orders.

Push system

The inventory model best suited for high-demand, low-variability products.

Just-in-time

The strategy minimizing inventory in a lean manufacturing environment.

Vendor-Managed Inventory (VMI)

When a vendor manages restocking on behalf of the buyer.

Inventory turnover

Measures how often inventory is sold and replaced.

Labor productivity

The KPI that improves when a company improves pick rates per hour.

Time for completion

What's being measured when a warehouse manager uses engineered standards.

Perfect order rate

The KPI indicating efficiency in meeting customer demand.

Cost per order packed

The metric to use for reducing waste in packaging.

Improved visibility

The primary benefit of using RFID to track products in real-time.

Enable real-time decision-making

The goal of a control tower providing dashboard-style monitoring.

ERP

The system linking production, distribution, and finance modules.

Activity-Based Costing (ABC)

The method a manager should use to assign logistics costs to specific activities.

Cost-to-serve

The approach calculating the true cost to serve a customer.

Identify performance gaps

The main purpose of benchmarking logistics operations.

Ratio

The KPI category that includes efficiency ratios like cost per unit shipped.

Functional benchmarking

The type of benchmarking comparing logistics processes across industries.

Flexible budgeting for warehousing

An advantage that aligns cost with activity volume.

Internal

The scorecard perspective that evaluates process efficiency.

Unpredictable demand and urgency

A major challenge in humanitarian logistics.

Donation-to-delivery time

The metric tracking time from receiving donations to delivery in crisis zones.

Push and Pull

A hybrid inventory model combining these two approaches.

Triple Bottom Line (TBL)

The tool assessing the environmental, social, and financial impact of logistics.

Strategic planning

The approach helping forecast and plan logistics activities over a long time horizon.

Hold inventory to meet peaks in seasonal demand

The main role of a distribution center in supporting seasonal demand.

Product layout

The warehouse layout designed to support large volumes with high repetition and low variety.

Computer-integrated manufacturing (CIM)

The technology integrating hardware, software, and communications to automate production activities.

Service-profit chain

The performance model linking employee satisfaction to customer value and profitability.

Trans-shipment site

The warehouse strategy supporting quick cross-docking and minimal storage.

Environmental, social, and economic factors

The focus of a triple bottom line (TBL) measurement.

Productivity

The metric representing the ratio of a warehouse's output to its input.

Computer-aided design (CAD)

The technology used to design, analyze, and simulate products before physical production.

Project

The type of manufacturing system best for making customized products with low volume.

Order qualifier

The performance qualifier indicating basic customer expectations for goods or services.

Value chain model

The performance model evaluating performance across the entire value chain.

Flexible manufacturing system (FMS)

An approach with computer-controlled machines linked by automated handling.

Marshalling

The warehouse operation supporting the final stage of order assembly before shipment.

Omnichannel fulfillment

The strategy aiming to provide a seamless customer experience across all shopping channels.

Flexibility

The service-related performance dimension measuring adaptability to changing customer needs.

Fixed position

The layout most appropriate for assembling large products like aircraft.

Ability to serve additional customers at low incremental cost

The most relevant factor when evaluating a warehouse technology's scalability.

Customer

The element of the balanced scorecard focusing on customer needs and satisfaction.

Computer software

The soft technology supporting goods creation and delivery using internet systems.

Overflow site

The type of warehouse site used when regular storage space is exceeded.