Chapter 11 Logistics Management Vocabulary Flashcards

Comprehensive vocabulary flashcards covering key definitions, concepts, transportation mode characteristics, and operational processes from Chapter 11 Logistics Management.

Logistics Management

The movement and storage of materials and information within, into, and out of an organization to meet customer needs and operational objectives at the lowest cost.

Activities of Integrated Logistics Management

The core interconnected operational areas of logistics, which include network design, inventory management, order processing, transportation management, warehouse management, and material handling and packaging.

Inbound Flows

Logistics movements where managers work with supply managers to ensure the flows of materials meet the firm's operational requirements.

Internal Flows

The timely and correct movements of information, products, and materials internally within and across a firm's facilities.

Outbound Flows

Logistics operations where managers coordinate with marketing, sales, and customers to ensure product requirements are satisfied.

Perfect Order

An order that is right-product, right-time, complete, undamaged, accurate in billing, provides tracking and shipping notifications, and uses the customer's preferred shipping method.

Electronic Data Interchange (EDI)

The structured, secure electronic transmission of data between organizations.

Robotic Process Automation (RPA)

A process tool that uses scripts or 'bots' to automate specific keystrokes and mimic transaction steps within process operations.

Economic Regulation

Government controls on entry, rates, and services provided by transportation carriers to ensure access to everyone at a reasonable cost.

Social Regulation

Government measures designed to ensure transportation carriers operate safely, responsibly, and sustainably.

Economy of Scale

The transportation principle stating that the cost per unit of weight decreases as the total shipment size increases.

Economy of Distance

The transportation principle stating that the cost per unit of distance traveled decreases as the total distance moved increases.

Twenty-Foot Equivalent Unit (TEU)

A standard unit of measure for container ship capacity based on a container measuring 20 feet long, 8 feet wide, and 8.5 feet tall.

Market Area Consolidation

Combining several small shipments from one supplier that are going to the same market area into a single shipment.

Pooled Delivery Consolidation

Combining small shipments from multiple different shippers going to the same market area into one delivery shipment.

Scheduled Delivery Consolidation

Establishing specific delivery timeframes so customers adjust their ordering times to fit the scheduled delivery window.

Characteristics of Transportation Modes

The relative performance ratings across speed, availability, dependability, capability, frequency, cost, and GHG emissions for air, truck, rail, water, and pipeline.

Speed

The total elapsed time required to move a shipment from its point of origin to its destination.

Availability

The ability of a transportation mode to service and connect any given location.

Dependability

The variance or consistency in expected delivery times provided by a transportation mode.

Capability

The capacity of a transportation mode to handle any type of product or size of load.

Frequency

The number of scheduled movements that can be arranged by a transportation carrier within a given timeframe.

Truckload (TL)

Motor carriers that move full trailers of freight directly from origin to destination without terminal stops.

Less-Than-Truckload (LTL)

Motor carriers moving loads under 15,000 lbs that require terminal stops for load consolidation.

Specialty Carriers

Package and parcel haulers, such as FedEx or UPS, designed to meet specific service and cost requirements.

Intermodal Transportation

The combination of two or more transportation modes to take advantage of the economies and service benefits of each.

TOFC / COFC

Trailer on Flatcar / Container on Flatcar; intermodal services where highway trailers or shipping containers travel on rail flatcars.

Last Mile Delivery

Transportation from a local distribution center or retail store directly to the customer's final location, often involving small order quantities and higher costs.

Omni-Channel Distribution

A distribution strategy allowing customers to place, receive, and return purchases through multiple integrated fulfillment options.

Distribution Center (DC)

A strategic warehouse facility focused on storing products and creating assortments to meet customer requirements.

Fulfillment Center (FC)

A specialized distribution facility tailored for processing and shipping e-commerce orders directly to consumers or businesses.

Transshipment Point

A facility where incoming products are received, sorted, sequenced, and assembled into outgoing loads for customer delivery.

Stockpiling

The storage of inventory in warehouses to protect against seasonality in supply or demand.

Production Support Warehouse

A facility dedicated to storing raw parts and components required to sustain a manufacturing plant's operations.

Break-Bulk, Consolidation, and Cross-Docking

Three primary DC distribution methods: Break-Bulk splits single large shipments for local deliveries; Consolidation combines multiple incoming shipments into single outgoing deliveries; Cross-Docking directly transfers incoming shipments to outgoing trucks with minimal storage.

Reverse Logistics

Logistics activities required to collect, consolidate, transport, sort, and manage products returned upstream by customers for credit, repair, remanufacturing, recycling, or disposal.

Value-Added Services

Work performed inside distribution facilities that creates greater customer value through customized features, packaging, or product configuration.

Warehouse Operations Flow

The sequential functional steps within a facility: Receiving & Unloading, In-Storage Handling (Putway), Storage, Order Picking & Pacing, Staging, and Loading & Shipping.

Cost-to-Service Trade-Off

The principle that as target service levels increase for customers, the associated logistics costs typically rise as well.

Cost-to-Cost Trade-Off

The trade-off where increasing expenditure on one logistics activity leads to a reduction in the cost of another logistics activity.

Total Network Cost Optimization

Determining network locations by balancing inventory costs against inbound and outbound transportation costs to minimize total logistics expenses.

Total Landed Cost

The sum of all product- and logistics-related costs incurred across manufacturing, transit, and distribution within the destination country.

Third-Party Logistics Service Providers (3PLs)

External integrated service providers that manage bundled logistics functions such as transportation, warehousing, packaging, and order processing for client companies.