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10-Mbps baseband Ethernet specification using 50-ohm thin coaxial cable. 10Base2, which is part of the IEEE 802.3 specification, has a distance limit of 185 meters per segment.
10-Mbps baseband Ethernet specification using standard (thick) 50-ohm baseband coaxial cable. 10Base5, which is part of the IEEE 802.3 baseband physical layer specification, has a distance limit of 500 meters per segment.
10-Mbps baseband Ethernet specification that refers to the 10BaseFB, 10BaseFL, and 10BaseFP standards for Ethernet over fiber-optic cabling.
10-Mbps baseband Ethernet specification using fiber-optic cabling. 10BaseFB is part of the IEEE 10BaseF specification. It is not used to connect user stations, but instead provides a synchronous signaling backbone that allows additional segments and repeaters to be connected to the network. 10BaseFB segments can be up to 2,000 meters long.
10-Mbps baseband Ethernet specification using fiber-optic cabling. 10BaseFL is part of the IEEE10BaseF specification and, while able to interoperate with FOIRL, is designed to replace the FOIRL specification. 10BaseFL segments can be up to 1,000 meters long if used with FOIRL, and up to 2,000 meters if 10BaseFL is used exclusively.
10-Mbps fiber-passive baseband Ethernet specification using fiber-optic cabling. 10BaseFP ispart of the IEEE 10BaseF specification. It organizes a number of computers into a star topology without the use of repeaters. 10Base FP segments can be up to 500 meters long.
A specification of the IEEE 802.3 committee for the implementation of 10 Mbit Ethernet on unshielded twisted pair wiring.
10-Mbps broadband Ethernet specification using broadband coaxial cable. 10Broad36, which is part of the IEEE 802.3 specification, has a distance limit of 3,600 meters per segment.
100-Mbps baseband Fast Ethernet specification using two strands of multimode fiber-optic cable per link. To guarantee proper signal timing, a 100BaseFX link exceed 400 meters in length. Based on the IEEE 802.3 standard.
A 100MB Ethernet specification using Level 5 UTP.
100-Mbps baseband Fast Ethernet specification using four pairs of Category 3, 4, or 5UTP wiring. To guarantee proper signal timing, a 100BaseT4 segment cannot exceed 100 meters in length. Based on the IEEE 802.3 standard.
100-Mbps baseband Fast Ethernet specification using two pairs of either UTP or STP wiring. The first pair of wires is used to receive data, the second is used to transmit. To guarantee proper signal timing a 100BaseTX segment cannot exceed 100 meters in length. Based on the IEEE 802.3 standard.
100-Mbps baseband Fast Ethernet specification that refers to the 100BaseFX and 100BaseTX standards for Fast Ethernet over fiber-optic cabling. Based on the IEEE 802.3 standard.
100-Mbps Fast Ethernet and Token Ring media technology using four pairs of Category 3, 4, or 5 UTP cabling. This high-speed transport technology, developed by Hewlett-Packard, can be made to operate on existing 10BaseT Ethernet networks. Based on the IEEE 802.12 standard.
4B/5B local fiber
4-byte/5-byte loc 100 Mbps over multimode fiber. See also TAXI 4B/5B.
08/10B local fiber
8-byte/10-byte local fiber. Fiber channel physical media that supports speeds up to 149.76 Mbps over multimode fiber.
A&B bit signaling
Procedure used in T1 transmission facilities in which each of the 24 T1 subchannels devotes one bit of every sixth frame to the carrying of supervisory signaling information. Also called 24th channel signaling.
ATM adaptation layer. Service-dependent sublayer of the data link layer. The AAL accepts data from different applications and presents it to the ATM layer in the form of 48-byte ATM payload segments. AALs consist of two sublayers, CS and SAR, AALs differ on the basis of the source-destination timing used, whether they use DBR or VBR, and whether they are used for connection-oriented or connectionless mode data transfer. At present, the four types of AAL recommended by the ITU-T are AAL1, AAL2, AAL3/4, and AAL5.
ATM adaptation layer 1. One of four AALs recommended by the ITU-T. AAL1 is used for connection-oriented, delay-sensitive services requiring constant bit rates, such as uncompressed video and other isochronous traffic.
ATM adaptation layer 2. One of four AALs recommended by the ITU-T. AAL2 is used for connection-oriented services that support a variable bit rate, such as some isochronous video and voice traffic.
ATM adaptation layer 3/4. One of four AALs (merger from two initially distinct adaptation layers) recommended by the ITU-T. AAL 3/4 supports both connectionless and connection oriented links, but is primarily used for the transmission of SMDS packets over ATM networks.
ATM adaptation layer 5. One of four AALs recommended by the ITU-T. AAL5 supports connection-oriented, VBR services, and is used predominantly for the transfer of classic IP over ATM and LANE traffic. AAL5 uses SEAL and is the least complex of the current AAL recommendations. It offers low bandwidth over head and simpler processing requirements in exchange for reduced bandwidth capacity and error-recovery capability.
AppleTalk Address Resolution Protocol. Protocol in the AppleTalk protocol stack that maps a data-link address to a network address.
AARP probe packets
Packets transmitted by AARP that determine whether a randomly selected node ID is being used by another node in a nonextended AppleTalk network. If the node ID is not being used, the sending node uses that node ID. If the node ID is being used, the sending node chooses a different ID and sends more AARP probe packets.
Asynchronous Balanced Mode. An HDLC (and derivative protocol) communication mode supporting peer-oriented, point-to- point communications between two stations, where either station can initiate transmission.
1. available bit rate. QOS class defined by the ATM Forum for ATM networks. ABR is used for connections that do not require timing relationships between source and destination. ABR provides no guarantees in terms of cell loss or delays, providing only best-effort service. Traffic sources adjust their transmission rate in response to information they receive describing the statue of the network and its capability to successfully deliver data. Compare with CBR, UBR, and VBR. 2. area border router. Router located on the border of one or more OSPF areas that connects those areas to the backbone network. ABRs are considered members of both the OSPF backbone and the attached areas. They therefore maintain routing tables describing both the backbone topology and the topology of the other areas.
Alternating Current. An electrical power transmission system in which the direction of current flow alternates on a periodic basis.
A hardware addition to an existing computing device that increases the computer’s processing speed and capabilities.
Referring to the ability of a computing device to use data or resources beyond its native capabilities.
List kept by routers to control access to or from the router for a number of services. For example, the list can prevent packets with a certain IP address from leaving a particular interface on the router.
The type of Media Access Control method that a node uses to gain control of a network.
One of five categories of network management defined by ISO for
management of OSI networks. Accounting management subsystems are responsible for collecting network data relating to resource usage. See also configuration management, fault management, performance management, and security management.
Referring to how closely a test instrument’s measurements compare to a standard value, usually expressed as a percentage of the value measured.
Advanced Communications Function. A group of SNA products that provides distributed processing and resource sharing.
Advanced Communications Function/Network Control Program. The primary SNA NCP. ACF/NCP resides in the communications controller and interfaces with the SNA access method in the host processor to control network communications.
Notification sent from one network device to another to acknowledge that some event (for example, receipt of a message) has occurred. Sometimes abbreviated ACK.
Allows cell rate. Parameter defined by the ATM Forum for ATM traffic management. ACR varies between the MCR and the PCR, and is dynamically controlled using congestion control mechanisms.
Association control service element. An OSI convention used to establish, maintain or terminate a connection between two applications.
Multiported device that amplifies LAN transmission signals.
Device responsible for managing a Token Ring. A network node is selected to be the active monitor if it has the highest MAC address on the ring. The active monitor is responsible for management tasks such as ensuring that tokens are not lost or that frames do not circulate indefinitely.
Hardware that allows a computing device physical access to a network.
See dynamic routing.
Advanced Data Communications Control Protocol.
A numerical designation that uniquely refers to a specific communication entity.
Mode that permits control signals and commands to
establish and terminate calls in V.25bis.
Technique that allows different protocols to interoperate by translating addresses from one format to another. For example, when routing IP over X.25, the IP addresses must be mapped to the X.25 addresses so that the IP packets can be transmitted by the X.25 network. See also address resolution.
Bit combination used to describe which portion of anaddress refers to the network or subnet and which partrefers to the host. Sometimes referred to simply as mask.also subnet mask.
When two addressing systems refer to the same entity, the process of translating or expressing the address of an entity on one system to the equivalent address of the same entity in the second system. For instance, translating an IP address to its given DNS name.
The range of possible unique addresses allowed by an addressing scheme.
Relationship formed between selected neighboringrouters and end nodes for the propose of exchangingrouting information. Adjacency is based upon the useof a common media segment.
1. In SNA, nodes that are connected to a given nodewith no intervening nodes. 2. In DECnet and OSI, nodes that share a common network segment (in Ethernet, FDDI, or Token Ring networks).
A rate of the trustworthiness of a routing information source. The higher the value, the lower the trustworthiness rating.
See traffic policing.
Adaptive differential pulse code modulation. Process by which analog voice samples are encoded into high-quality digital signals.
ATM DSU. Terminal adapter used to access an ATM network via an HSSI-compatible device. See also DSU.
Router process in which routing or service updates are sent at specified intervals so that other routers on the network can maintain lists of usable routes.
AppleTalk Echo Protocol. Used to test connectivity between two AppleTalk nodes. One node sends a packet to another node and receives a duplicate, or echo, of that packet.
AppleTalk Filing Protocol. The Apple proprietary specification for a network file system.
1. An active process in a computer that is responsible for a certain type of activity when demanded by an outside entity. 2. In SNMP, the active process in a computing device that is responsible for determining the parameters defined in the MIB (Management Information Base) and reporting them on demand to a Console.
Alarm indication signal. In a T1 transmission, an all-ones signal transmitted in lieu of the normal signal to maintain transmission continuity and to indicate to the receiving terminal that there is a transmission fault that is located either at, or upstream from, the transmitting terminal.
IBM’s implementation of Unix.
Message notifying an operator or administrator of a network problem. See also event and trap.
Alarm Indication Signal
The ITU-T companding standard used in the conversion between analog and digital signals in PCM systems. A-law is used primarily in European telephone networks and is similar to the North American mu-law standard. See also companding and mu-law.
A set of rules and decision structures for actions in a specifically defined set of circumstances.
A file whose sole purpose is to represent another file.
In IEEE 802.3 networks, an error that occurs when the total number of bits of a received frame is not divisible by eight. Alignment errors are usually caused by frame damage due to collisions.
All-rings Explorer Packet
See all-routes explorer packet.
All-routes Explorer Explorer Packet
packet that traverses an entire SRB network, following all possible paths to a specific destination. Sometimes called all-rings explorer packet, See also explorer packet, local explorer packet, and spanning explorer packet.
Archaic. AppleTalk Low Overhead Encapsulation. A vendor-developed alternative to AURP, ALOE provides a mechanism to tunnel AppleTalk protocols inside IP packets, typically in WAN links.
Referring to a group of printable characters that includes the letters of the alphabet in both upper and lower case, the numerals plus a limited group of additional symbols and punctuation marks.
Amplitude Modulation. Modulation technique whereby information is conveyed through the amplitude of the carrier signal. Compare with FM and PAM. See also modulation.
Referring to a set of conditions that exist independently of the system of interest.
Alternate mark inversion. Line-code type used on T1 and E1 circuits. In AMI, zeros are represented by 01 during each bit cell, and ones are represented by 11 or 00, alternately, during each bit cell. AMI requires that the sending device maintain ones density. Ones density is not maintained independent of the data stream. Sometimes called binary coded alternate mark inversion. See also ones density.
Ampere. A standard unit of measurement for electrical current flow.
In the terminology of wave motion, the height of the wave. Amplitude is usually measured from a reference point of 0. In electrical waves, amplitude is typically expressed in volts.
Referring to a system or component that uses a system of measurement, response or storage in which values are expressed a s a magnitude using a continuous scale of measurement.
Signal transmission over wires or through the air in which information is conveyed through variation of some combination of signal amplitude, frequency, and phase.
An unusual instance or circumstance.
American National Standards Institute. The principle group in the US. for defining standards.
Apple Open Collaboration Environment. A system of higher- level protocols used for the transmission of data and authentication between applications.
Automated packet recognition/translation. Technology that allows a server to be attached to CDDI or FDDI without requiring the reconfiguration of applications or network protocols. APaRT recognizes specific data link layer encapsulation packet types and, when these packet types are transferred from one medium to another, translates them into the native format of the destination device.
Application Programming Interface. A set of tools and procedures provided by the programmer of an application so that other programmers can control, exchange data with, or extend the functionality of an application.
Proprietary network protocol suite developed by Apollo Computer for communication on proprietary Apollo networks.
Advanced Program-to-Program Communication. IBM SNA system software that allows high-speed communication between programs on different computers in a distributed computing environment. APPC establishes and tears down connections between communicating programs, and consists of two interfaces, a programming interface and a data-exchange interface. The former replies to requests from programs requiring communication; the latter establishes sessions between programs. APPC runs on LU 6.2 devices. See also LU 6.2.
Apple’s primary mechanism for interprocess communication.
A programming language that can call tasks within Macintosh applications.
An application published by Apple that allows a Macintosh to be a file server using the AFP protocol.
1. Apple’s proprietary network architecture. 2. The protocols, applications, networks and services included in Apple’s network architecture.
An independently executable set of algorithms and data structures that perform a specific set of functions.
Layer 7 of the OSI reference model. This layer provides services to application processes (such as electronic mail, file transfer, and terminal emulation) that are outside of the OSI model. The application layer identifies and establishes the availability of intended communication partners (and the resources required to connect with them), synchronizes cooperating applications, and agreement on procedures for error recovery and control of data integrity. Corresponds roughly with the transaction services layer in the SNA model. See also data link layer, network layer, physical layer, presentation layer, session layer, and transport layer.
Advanced Peer-to-Peer Networking. Enhancement to the original IBM SNA architecture. APPN handles session establishment between peer nodes, dynamic transparent route calculation, and traffic prioritization for APPC traffic. Compare with APPN+. See also APPC.
Next-generation APPN that replaces the label-swapping routing algorithm with source routing. Also called high-performance routing. See also APPN.
AppleTalk Remote Access. Protocol that provides Macintosh users direct access to information and resources at a remote AppleTalk site.
The sum total of all of the specifications, protocols and implementations that define a particular networking system.
A storage of infrequently-used or historical data.
Attached Resource Computer Network. A 2.5-Mbps token-bus LAN developed in the late 1970s and early 1980s by Datapoint Corporation.
Logical set of network segments (either CLNS-, DECnet-, OSPF-based) and their attached devices. Areas are usually connected to other areas via routers, making up a single autonomous system. See also autonomous system.
Asynchronous response mode, HDLC communication mode involving one primary station and at least one secondary station, where either the primary or one of the secondary stations can initiate transmissions. See also primary station and secondary station.
Address Resolution Protocol. The protocol for mapping IP addresses to physical addresses such as Ethernet or Token Ring.
Advanced Research Projects Agency, Research and development organization that is part of DoD. ARPA is responsible for numerous technological advances in communications and networking. ARPA evolved in DARPA, and then back into ARPA again (in 1994). See also DARPA.
Advanced Research Projects Agency Network. Landmark packet-switching network established in 1969. ARPANET was developed in the 1970s by BBN and funded by ARPA (and later DARPA). It eventually evolved into the Internet. The term ARPANET was officially retired in 1990.
Automatic repeat request. Communication technique in which the receiving device detects errors and requests retransmission.
See autonomous system.
Autonomous system boundary router. ABR located between an OSPF autonomous system and a non-OSPF network. ASBRs run both OSPF and another routing protocol, such as RIP, ASBRs must reside on a nonstub OSPF area.
Referring to a standard 7-bit character system that includes the alphanumeric characters and printer control codes.
AppleTalk Secure Data Stream Protocol. An encrypted version of ADSP used by AOCE.
Application-Specific Integrated Circuit. A custom chip for a specific application.
Apple Shared Library Manager.
Abstract Syntax Notation One. In SNMP, the language used to describe data managed by the MIB.
Memory that is accessed based on its contents, not on its memory address. Sometimes called content addressable memory (CAM).
Automatic spanning tree. Function that supports the automatic resolution of spanning trees in SRB networks, providing a single path for spanning explorer frames to traverse from a given node in the network to another. AST is based on the IEEE 802.1 standard.
Advanced Software Technology and Algorithms. Component of the HPCC program intended to develop software and algorithms for implementation on high-performance computer and communications systems. See also HPCC.
In networking, a system in which the relationship between two entities is inherently unequal, with each entity restricted to a set of operations and prerogatives defined by its role in the relationship.
A system of communication in which each discreet delivery of information establishes its own timing impulse rather than having to conform to the timing impulse of previous deliveries.
Term describing digital signals that are transmitted without precise clocking. Such signals generally have different frequencies and phase relationships. Asynchronous transmissions usually encapsulate individual characters in control bits (called start and stop bits) that designate the beginning and end of each character. Compare with Isochronous transmission, plesiochronous transmission, and synchronous transmission.
AT commands Transmission
A set of commands that control a modem or alter its characteristics.
Asynchronous time-division multiplexing. Method of sending information that resembles normal TDM, except that time slots are allocated as needed rather than preassigned to specific transmitters. Compare with FDM, Statistical multiplexing, and TDM.
Asynchronous Transfer Mode. A broadband transmission system using 53-octet packets over a cell-switched network at speeds up to 2.2 GBPS.
AppleTalk Transaction Protocol. Transport-level protocol that allows reliable request-response exchanges between two socket clients.
A loss in the amplitude or strength of a signal due to an interaction with the signal’s media. Generally expressed in decibels.
Configuration data that defines the characteristics of database objects such as the chassis, cards, ports, or virtual circuits of a particular device. Attributes might be preset or user-configurable. On a LightStream 2020 ATM switch, attributes are set using the configuration program or CLI commands.
Attachment unit interface. IEEE 802.3 interface between an MAU and a NIC (network interface card). Also called transceiver cable.
AppleTalk Update-Based Routing Protocol. Apple’s WAN protocol.
Glossary of Supply Chain Terms
Stymied by stickering? Exasperated by XML? And just what is Poka Yoke, anyway? Let Inbound Logistics' glossary of transportation, logistics, supply chain, and international trade terms help.
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ABC Analysis: A classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume.
ABC Classification: Classification of a group of items in decreasing order of annual dollar volume or other criteria. This array is then split into three classes called A, B, and C. The A group represents 10 to 20% by number of items, and 50 to 70% by projected dollar volume. The next grouping, B, represents about 20% of the items and 20% of the dollare volume. The C-class contains 60 to 70% of the items, and represents about 10 to 30% of the dollar volume.
ABC Costing:See Activity-Based Costing (ABC)
ABC Inventory Control: An inventory control approach based on the ABC volume or sales revenue classification of products (A items are highest volume or revenue, C - or perhaps D - are lowest volume SKUs.)
ABC Model: In cost management, a representation of resource costs during a time period that are consumed through activities and traced to products, services, and customers, or to any other object that creates a demand for the activity to be performed.
ABC System: In cost management, a system that maintains financial and operating data on an organization's resources, activities, drivers, objects and measures. ABC Models are created and maintained within this system.
ABI: *See Automated Broker Interface (ABI)
ABM:See Activity-Based Management (ABM).
ABP:See Activity-Based Planning (ABP).
Abnormal Demand: Demand in any period that is outside the limits established by management policy. This demand may come from a new customer or from existing customers whose own demand is increasing or decreasing. Care must be taken in evaluating the nature of the demand: Is it a volume change, is it a change in product mix, or is it related to the timing of the order?
Absorption Costing: In cost management, an approach to inventory valuation in which variable costs and a portion of fixed costs are assigned to each unit of production. The fixed costs are usually allocated to units of output on the basis of direct labor hours, machine hours, or material costs. Synonym: Allocation Costing.
Accelerated Commercial Release Operations Support System (ACROSS): A Canada Customs system to speed the release of shipments by allowing electronic transmission of data to and from Canada Customs 24 hours a day, 7 days a week.
Acceptable Quality Level (AQL): In quality management, when a continuing series of lots is considered, AQL represents a quality level that, for the purposes of sampling inspection, is the limit of a satisfactory process average.
Acceptable Sampling Plan: In quality management, a specific plan that indicates the sampling sizes and the associated acceptance or non-acceptance criteria to be used. Also see: Acceptance Sampling.
Acceptance Number: In quality management, 1) A number used in acceptance sampling as a cut off at which the lot will be accepted or rejected. For example, if x or more units are bad within the sample, the lot will be rejected. 2) The value of the test statistic that divides all possible values into acceptance and rejection regions. Also see: Acceptance Sampling.
Acceptance Sampling: 1) The process of sampling a portion of goods for inspection rather than examining the entire lot. The entire lot may be accepted or rejected based on the sample even though the specific units in the lot are better or worse than the sample. There are two types: attributes sampling and variables sampling. In attributes sampling, the presence or absence of a characteristic is noted in each of the units inspected. In variables sampling, the numerical magnitude of a characteristic is measured and recorded for each inspected unit; this type of sampling involves reference to a continuous scale of some kind. 2) A method of measuring random samples of lots or batches of products against predetermined standards.
Accessibility: A carrier's ability to provide service between an origin and a destination.
Accessorial Charges: A carrier's charge for accessorial services such as loading, unloading, pickup, and delivery, or any other charge deemed appropriate.
Accountability: Being answerable for, but not necessarily personally charged with, doing specific work. Accountability cannot be delegated, but it can be shared. For example, managers and executives are accountable for business performance even though they may not actually perform the work.
Accounts Payable (A/P): The value of goods and services acquired for which payment has not yet been made.
Accounts Receivable (A/R): The value of goods shipped or services rendered to a customer on whom payment has not been received. Usually includes an allowance for bad debts.
Accreditation: Certification by a recognized body of the facilities, capability, objectivity, competence, and integrity of an agency, service, operational group, or individual to provide the specific service or operation needed. For example, the Registrar Accreditation Board accredits those organizations that register companies to the ISO 9000 Series Standards.
Accredited Standards Committee (ASC): A committee of ANSI chartered in 1979 to develop uniform standards for the electronic interchange of business documents. The committee develops and maintains US generic standards (X12) for Electronic Data Interchange.
Accumulation Bin: A place, usually a physical location, used to accumulate all components that go into an assembly before the assembly is sent out to the assembly floor. Synonym: Assembly Bin.
Accuracy: In quality management, the degree of freedom from error or the degree of conformity to a standard. Accuracy is different from precision. For example, four-significant-digit numbers are less precise than six-significant-digit numbers; however, a properly computed four-significant-digit number might be more accurate than an improperly computed six-significant-digit number.
ACD:See Automated Call Distribution.
Acknowledgement: A communication by a supplier to advise a purchaser that a purchase order has been received. It usually implies acceptance of the order by the supplier.
Acquisition Cost: In cost accounting, the cost required to obtain one or more units of an item. It is order quantity times unit cost.
Action Message: An alert that an MRP or DRP system generates to inform the controller of a situation requiring his or her attention.
Active Stock: Goods in active pick locations and ready for order filling.
Activity: Work performed by people, equipment, technologies, or facilities. Activities are usually described by the action-verb-adjective-noun grammar convention. Activities may occur in a linked sequence and activity-to-activity assignments may exist. (1) In activity-based cost accounting, a task or activity, performed by or at a resource, required in producing the organization's output of goods and services. A resource may be a person, machine, or facility. Activities are grouped into pools by type of activity and allocated to products. (2) In project management, an element of work on a project. It usually has an anticipated duration, anticipated cost, and expected resource requirements. Sometimes major activity is used for larger bodies of work.
Activity Analysis: The process of identifying and cataloging activities for detailed understanding and documentation of their characteristics. An activity analysis is accomplished by means of interviews, group sessions, questionnaires, observations, and reviews of physical records of work.
Activity-Based Budgeting (ABB): An approach to budgeting where a company uses an understanding of its activities and driver relationships to quantitatively estimate workload and resource requirements as part of an ongoing business plan. Budgets show the types, number of, and cost of resources that activities are expected to consume based on forecasted workloads. The budget is part of an organization's activity-based planning process and can be used in evaluating its success in setting and pursuing strategic goals.
Activity-Based Costing (ABC): A methodology that measures the cost and performance of cost objects, activities, and resources. Cost objects consume activities and activities consume resources. Resource costs are assigned to activities based on their use of those resources, and activity costs are reassigned to cost objects (outpputs) based on the cost objects proportional use of those activities. Activity-based costing incorporates causal relationships between cost objects and activities and between activities and resources.
Activity-Based Costing Model: In activity-based cost accounting, a model, by time period, of resource costs created because of activities related to products or services or other items causing the activity to be carried out.
Activity-Based Costing System: A set of activity-based cost accounting models that collectively defines data on an organization's resources, activities, drivers, objects, and measures.
Activity-Based Management (ABM): A discipline focusing on the management of activities within business processes as the route to continuously improve both the value received by customers and the profit earned in providing that value. AMB uses activity-based cost information and performance measurements to influence management action. See Activity-Based Costing.
Activity-Based Planning (ABP): Activity-based planning (ABP) is an ongoing process to determine activity and resource requirements (both financial and operational) based on the ongoing demand of products or services by specific customer needs. Resource requirements are compared to resources available and capacity issues are identified and managed.
Activity-based budgeting (ABB) is based on the outputs of activity-based planning.
Activity Dictionary: A listing and description of activities that provides a common/standard definition of activities across the organization. An activity dictionary can include information about an activity and/or its relationships, such as activity description, business process, function source, whether value added, inputs, outputs, supplier, customer, output measures, cost drivers, attributes, tasks, and other information as desired to describe the activity.
Activity Driver: The best single quantitative measure of the frequency and intensity of the demands placed on an activity by cost objects or other activities. It's used to assign activity costs to cost objects or to other activities.
Activity Level: A description of types of activities dependent on the functional area. Product-related activity levels may include unit, batch, and product levels. Customer-related activity levels may include customer, market, channel, and project levels.
Activity Ratio: A financial ratio used to determine how an organization's resources perform relative to the revenue the resources produce. Activity ratios include inventory turnover, receivables conversion period, fixed-asset turnover, and return on assets.
Actual Cost System: A cost system that collects costs historically as they are applied to production, and allocates indirect costs to products based on the specific costs and achieved volume of the products.
Actual Costs: The labor, material, and associated overhead costs that are charged against a job as it moves through the production process.
Actual Demand: Actual demand is composed of customer orders (and often allocations of items, ingredients, or raw materials to production or distribution). Actual demand nets against or consumes the forecast, depending on the rules chosen over a time horizon. For example, actual demand will totally replace forecast inside the sold-out customer order backlog horizon (often called the demand time fence), but will net against the forecast outside this horizon based on the chosen forecast consumption rule.
Actual to Theoretical Cycle Time: The ratio of the measured time required to produce a given output divided by the sum of the time required to produce a given output based on the rated efficiency of the machinery and labor operations.
Administrative Monetary Penalty System (AMPS ): A Canada Customs system of monetary penalties that will be imposed against violations of Canada Customs regulations.
Ad Valorem Duty: A duty calculated as a percentage of the shipment value. Also see: Duty
Advance Material Request: Ordering materials before the release of the formal product design. This early release is required because of long lead times.
Advanced Planning and Scheduling (APS): Techniques that deal with analysis and planning of logistics and manufacturing over the short, intermediate, and long-term time periods. APS describes any computer program that uses advanced mathmatical algorithms or logic to perform optimization or simulation on finite capacity scheduling, sourcing, capital planning, resource planning, forecasting, demand management, and others. These techniques simultaneously consider a range of constraints and business rules to provide real-time planning and scheduling, decision support, available-to-promise, and capable-to-promise capabilities. APS often generates and evaluates multiple scenarios. Management then selects one scenario to use as the official plan. The five main components of an APS system are demand planning, production planning, production scheduling, distribution planning, and transportation planning.
Advanced Shipment Notice (ASN): An EDI term referring to a transaction set (ANSI 856) where the supplier sends out a notification to interested parties that a shipment is now outbound in the supply chain. This notification is list transmitted to a customer or consignor designating items shipped. The ASN may also include the expected time of arrival.
Advanced Shipping Notice (ASN): Detailed shipment information transmitted to a customer or consignee in advance of delivery, designating the contents (individual products and quantities of each) and nature of the shipment. May also include carrier and shipment specifics, including time of shipment and expected time of arrival. Also see: Assumed Receipt.
Aerodynamic Drag: Wind resistance
After-Sale Service: Services provided to the customer after products have been delivered. This can include repairs, maintenance, and/or telephone support. Synonym: Field Service
Agency Tariff: A rate bureau publication that contains rates for many carriers.
Agent: An enterprise authorized to transact business for, or in the name of, another enterprise.
Agglomeration: A net advantage a company gains by sharing a common location with other companies.
Aggregate Forecast: An estimate of sales, oftentimes phased, for a grouping of products or product families produced by a facility or firm. Stated in terms of units, dollars, or both, the aggregate forecast is used for sales and production planning (or for sales and operations planning) purposes.
Aggregate Planning: A process to develop tactical plans to support the organization's business plan. Aggregate planning usually includes the development, analysis and maintenance of plans for total sales, total production, targeted inventory, and targeted inventory, and targeted customer backlog for families of products. The production plan is the result of the aggregate planning process. Two approaches to aggregate planning exist - production planning and sales and operations planning.
Aggregate Tender Rate: A reduced rate offered to a shipper who tenders two or more class-related shipments at one time and one place.
Agility: The ability to successfully manufacture and market a broad range of low-cost, high-quality products and services with short lead times and varying volumes that provide enhanced value to customers through customization. Agility merges the four distinctive competencies of cost, quality, dependability, and flexibility.
Air Cargo: Freight that is moved by air transportation.
Air Cargo Agent: An agent appointed by an airline to solicit and process international airfreight shipments.
Air Cargo Containers: Containers designed to conform to the inside of an aircraft. There are many shapes and sizes of containers. Air cargo containers fall into three categories: 1) air cargo pallets 2) lower deck containers 3) box type containers.
Air Carrier: An enterprise that offers transportation service via air.
Airport and Airway Trust Fund: A federal fund that collects passenger ticket taxes and disburses those funds for airport facilities.
Air Taxi: An exempt for-hire air carrier that will fly anywhere on demand; air taxis are restricted to a maximum payload and passenger capacity per plane.
Air Transport Association of America: A U.S. airline industry association.
Air Waybill (AWB): A bill of lading for air transport that serves as a receipt for the shipper, indicates that the carrier has accepted the goods listed, obligates the carrier to carry the consignment to the airport of destination according to specified conditions.
Alert:See Action Message.
Algorithm: a clearly specified mathematical process for computation; a set of rules, which, if followed, produce a prescribed result.
All-Cargo Carrier: An air carrier that transports cargo only.
Allocation: 1) A distribution of costs using calculations that may be unrelated to physical observations or direct or repeatable cause-and-effect relationships. Because of the arbitrary nature of allocations, costs based on cost causal assignment are viewed as more relevant for management decision-making. 2) Allocation of available inventory to customer and production orders.
All Water: Term used when the transportation is completely by water.
American National Standards Institute (ANSI): A non-profit organization chartered to develop, maintain, and promulgate voluntary US national standards in a number of areas, especially with regards to setting EDI standards. ANSI is the US representative to the International Standards Organization (ISO).
American Society for Quality (ASQ): Founded in 1946, a not-for-profit educational organization consisting of 144,000 members who are interested in quality improvement.
American Society of Transportation & Logistics: A professional organization in the field of logistics.
American Trucking Associations: A motor carrier industry association composed of sub-conferences representing various motor carrier industry sectors.
American Waterway Operators: A domestic water carrier industry association representing barge operators on inland waterways.
Amtrak: The National Railroad Passenger Corporation, a federally created corporation that operates most of the United States' intercity passenger rail service.
ANSI: *See American National Standards Institute (ANSI)
Anti-Dumping Duty: An additional import duty imposed in instances where imported goods are priced at less than the "normal" price charged in the exporter's domestic market and cause material injury to domestic industry in the importing country
Any-Quantity (AQ) rate: A rate that applies to any size shipment tendered to a carrier; no discount rate is available for large shipments.
API: American Petroleum Institute; also Application Programming Interface
APU: APUs automatically shut down the main locomotive engine idle while maintaining all vital main engine systems at greatly reduced fuel consumption
AQL:See Acceptable Quality Level (AQL).
A/R:See Accounts Receivable.
Arrival Notice: A notice from the delivering carrier to the Notify Party indicating the shipment's arrival date at a specific location (normally the destination).
Artificial Intelligence: A field of research seeking to understand and computerize the human thought process.
AS/RS:See Automated Storage/Retrieval System
ASQ:See American Society for Quality.
Assemble to Order: A production environment where a good or service can be assembled after receipt of a customer's order. The key components (bulk, semifinished, intermediate, sub-assembly, fabricated, purchased, packing, and so on) used in the assembly or finishing process are planned and usually stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products (based on the selection of options and accessories) can be assembled from common components.
Assembly: A group of subassemblies and/or parts that are put together and constitute a major subdivision for the final product. An assembly may be an end item or a component of a higher-level assembly.
Assignment: A distribution of costs using causal relationships. Because cost causal relationships are viewed as more relevant for management decision making, assignment of costs is generally preferable to allocation techniques. Synonymous with Tracing. Contrast with Allocation
Association of American Railroads: A railroad industry association that represents the larger U.S. railroads.
ATA: Actual time of arrival, or also known as the American Trucking Associations.
ATD: Actual time of departure
ATFI: Automated Tariff Filing Information System
ATP: *See Available to Promise (ATP)
Attributes: A label used to provide additional classification or information about a resource, activity, or cost object. Used for focusing attention and may be subjective. Examples are a characteristic, a score or grade of product or activity, or groupings of these items, and performance measures.
Audit: In reference to freight bills, the term audit is used to determine the accuracy of freight bills.
Auditability: A characteristic of modern information systems gauged by the ease with which data can be substantiated by tracing it to source documents, and the extent to which auditors can rely on pre-verified and monitored control processes.
Auditing: Determining the correct transportation charges due the carrier; auditing involves checking the freight bill for errors, correct rate, and weight.
Audit Trail: Manual or computerized tracing of the transactions affecting the contents or origin or a record.
AutoID: Referring to an automated identification system. This includes technology such as bar coding and radio frequency tagging (RFID).
Automated Broker Interface (ABI): The U.S. Customs program to automate the flow of customs-related information among customs brokers, importers, and carriers.
Automated Call Distribution: A feature of large call center or "Customer Interaction Center" telephone switches that routes calls by rules, such as next-available employee, skill set, etc.
Automated Guided Vehicle System (AGVS): A computer-controlled materials handling system consisting of small vehicles (carts) that move along a guideway.
Automated Storage/Retrieval System (AS/RS): A high-density rack inventory storage system with unmanned vehicles automatically loading and unloading products to/from the racks.
Automatic Tire Inflation System: Automatic tire inflation systems monitor and continually adjust the level of pressurized air to tires, maintaining proper tire pressure even when the truck is moving.
Available to Promise (ATP): The uncommitted portion of a company's inventory and planned production maintained in the master schedule to support customer-order promising. The ATP quantity is the uncommitted inventory balance in the first period and is normally calculated for each period in which an MPS receipt is scheduled. In the first period, ATP includes on-hand inventory less customer orders that are due and overdue. Three methods of calculation are used: discrete ATP, cumulative ATP with look ahead, and cumulative ATP without look ahead.
Average:See Marine Cargo Insurance
Average Cost: Total cost, fixed plus variable, divided by total output.
AWB: See Air Waybill
B2B:See Business-to-Business (B2B).
B2C:See Business-to-Customer (B2C).
Back Order: Product ordered but out of stock and promised to ship when the product becomes available.
Backhaul: The process of a transportation vehicle returning from the original destination point to the point of origin. The 1980 Motor Carrier Act deregulated interstate commercial trucking, thereby allowing carriers to contract for the return trip. The backhaul can be with a full, partial, or empty load. An empty backhaul is called deadheading. Also see: Deadhead
Backorder: (1) The act of retaining a quantity to ship against an order when other order lines have already been shipped. Backorders are usually caused by stock shortages. (2) The quantity remaining to be shipped if an initial shipment(s) has been processed. Note: In some cases, backorders are not allowed. This results in a lost sale when sufficient quantities are not available to completely ship an order or order line.
Backsourcing: Pulling a function back in house as an outsourcing contract expires.
Balanced Scorecard: A structured measurement system based on a mix of financial and non-financial measures of business performance. A list of financial and operational measurements used to evaluate organizational or supply chain performance. The dimensions of the balanced scorecard might include customer perspective, business process perspective, financial perspective, and innovation and learning perspectives. It formally connects overall objectives, strategies, and measurements. Each dimension has goals and measurements. Also see: Scorecard.
Balance of Trade: The surplus or deficit which results from comparing a country's exports and imports of merchandise only.
Bale: A large compressed, bound, and often wrapped bundle of a commodity, such as cotton or hay.
Bar Code: A symbol consisting of a series of printed bars representing values. A system of optical character reading, scanning, tracking of units by reading a series of printed bars for translation into a numeric or alphanumeric identification code. A popular example is the UPC code used on retail packaging.
Bar Code Scanner: A device to read bar codes and communicate data to computer systems.
Bar Coding: A method of encoding data for fast and accurate readability. Bar codes are a series of alternating bars and spaces printed or stamped on products, labels, or other media, representing encoded information which can be read by electronic readers called bar.
Barge: The cargo-carrying vehicle which may or may not have its own propulsion mechanism for the purpose of transporting goods. Primarily used by Inland water carriers, basic barges have open tops, but there are covered barges for both dry and liquid cargoes.
Barrier to Entry: Factors that prevent companies from entering into a particular market, such as high initial investment in equipment.
Barter: The exchange of commodities or services for other commodities or services rather than the purchase of commodities or services with money.
Base Currency: The currency whose value is "one" whenever a quote is made between two currencies.
Basing-Point Pricing: A pricing system that includes a transportation cost from a particular city or town in a zone or region even though the shipment does not originate at the basing point.
Batch Picking: A method of picking orders in which order requirements are aggregated by product across orders to reduce movement to and from product locations. The aggregated quantities of each product are then transported to a common area where the individual orders are constructed. See Zone Picking.
Benchmarking: The process of comparing performance against the practices of other leading companies for the purpose of improving performance. Companies also benchmark internally by tracking and comparing current performance with past performance.
Benefit-Cost Ratio: An analytical tool used in public planning; a ratio of total measurable benefits divided by the initial capital cost. Also see: Cost Benefit Analysis.
Best in Class: An organization, usually within a specific industry, recognized for excellence in a specific process area.
Best Practice: A specific process or group of processes which have been recognized as the best method for conducting an action. Best practices may vary by industry or geography depending on the environment being used. Best-practices methodology may be applied with respect to resources, activities, cost object, or processes.
Bilateral Contract: An agreement where-in each party makes a promise to the other party.
Billing: A carrier terminal activity that determines the proper rate and total charges for a shipment and issues a freight bill.
Bill of Activities: A listing of activities required by a product, service, process output, or other cost object. Bill of activity attributes could include volume and/or cost of each activity in the listing.
Bill of Lading (BOL): A transportation document that is the contract of carriage containing the terms and conditions between the shipper and carrier.
Bill of Lading Number: The number assigned by the carrier to identify the bill of lading.
Bill of Lading, Through: A bill of lading to cover goods from point of origin to final destination when interchange or transfer from one carrier to another is necessary to complete the journey.
Bill of Material (BOM): A structured list of all the materials or parts and quantities needed to produce a particular finished product, assembly, subassembly, or manufactured part, whether purchased or not.
Bill of Material Accuracy: Conformity of a list of specified items to administrative specifications, with all quantities correct.
Bill of Resources: A listing of resources required by an activity. Resource attributes could include cost and volumes.
Bin Center: A drop off facility that is smaller than a public warehouse
Binder: A strip of cardboard, thin wood, burlap, or similar material placed between layers of containers to hold a stack together.
Blanket Order:See Blanket Purchase Order.
Blanket Purchase Order: A long-term commitment to a supplier for material against which short-term releases will be generated to satisfy requirements. Oftentimes, blanket orders cover only one item with predetermined delivery dates. Synonyms: Blanket Order, Standing Order.
Blanket Rate: A rate that does not increase according to the distance a commodity is shipped.
Blanket Release: The authorization to ship and/or produce against a blanket agreement or contract.
Blanket Wrap: A service pioneered by the moving companies to eliminate packaging material by wrapping product in padded "blankets" to protect it during transit, usually on "air ride" vans.
Bleeding Edge: An unproven process or technology so far ahead of its time that it may create a competitive disadvantage.
Blow Through: An MRP process which uses a "phantom bill of material" and permits MRP logic to drive requirements straight through the phantom item to its components. The MRP system usually retains its ability to net against any occasional inventories of the item.
BOL:See Bill of Lading (BOL).
BOM:See Bill of Material (BOM).
Bonded: See Bond, In.
Bonded Warehouse: Warehouse approved by the Treasury Department and under bond/guarantee for observance of revenue laws. Used for storing goods until duty is paid or goods are released in some other proper manner.
Bookable Leg: See Leg.
Booking: The act of requesting space and equipmentaboard a vessel for cargo which is to be transported.
Booking Number: The number assigned to a certain space reservation by the carrier or the carrier's agent.
Bottleneck: A constraint, obstacle, or planned control that limits throughput or the utilization of capacity.
Boxcar: An enclosed railcar used to transport freight
BPM:See Business Performance Measurement (BPM).
BPO:See Business Process Outsourcing (BPO).
BPR:See Business Process Reengineering (BPR).
Bracing: To secure a shipment inside a carrier's vehicle to prevent damage.
Bracketed Recall: Recall from customers of suspect lot numbers, plus a specified number of lots produced before and after the suspect ones.
Branding: The use of a name, term, symbol, or design, or a combination of these, to identify a product.
Break-Bulk: The separation of a consolidated bulk load into smaller individual shipments for delivery to the ultimate consignee. The freight may be moved intact inside the trailer, or it may be interchanged and rehandled to connecting carriers.
Break Bulk Cargo: Cargo that is shipped as a unit or package (for example: palletized cargo, boxed cargo, large machinery, trucks) but is not containerized.
Break Bulk Vessel: A vessel designed to handle break bulk cargo.
Break-Even Point: The level of production or the volume of sales at which operations are neither profitable nor unprofitable. The break-even point is the intersection of the total revenue and total cost curves.
Broker: There are 3 definitions for the term "broker": 1) an enterprise that owns and leases equipment2) an enterprise that arranges the buying & selling of transportation of, goods, or services 3) a ship agent who acts for the ship owner or charterer in arranging charters.
Bucketed System: An MRP, DRP, or other time-phased system in which all time-phased data are accumulated into time periods, or buckets. If the period of accumulation is one week, then the system is said to have weekly buckets.
Buffer: 1) A quantity of materials awaiting further processing. It can refer to raw materials, semi-finished stores, or hold points, or a work backlog that is purposely maintained behind a work center. 2) In the theory of constraints, buffers can be time or material, and support throughput and/or due date performance. Buffers can be maintained at the constraint, convergent points (with a constraint part), divergent points, and shipping points.
Buffer Management: In the theory of constraints, a process in which all expediting in a shop is driven by what is scheduled to be in the buffers (constraint, shipping, and assembly buffers). By expediting this material into the buffers, the system helps avoid idleness at the constraint and missed customer due dates. In addition, the causes of items missing from the buffer are identified, and the frequency of occurrence is used to prioritize improvement activities.
Buffer Stock: A quantity of goods or articles kept in storage to safeguard against unforeseen shortages or demands.
Build to Inventory: A "push" system of production and inventory management. Product is manufactured or acquired in response to sales forecasts.
Build to Order: A method of reducing inventory by not manufacturing product until there is an actual order from the customer.
Build to Stock:See Build to Inventory.
Bulk Area: A storage area for large items which at a minimum are most efficiently handled by the palletload.
Bulk Cargo: Unpacked dry cargo such as grain, iron ore or coal. Any commodity shipped in this way is said to be in bulk.
Bullwhip Effect: An extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain. Inventory can quickly move from being backordered to being in excess. This is caused by the serial nature of communicating orders up the chain with the inherent transportation delays of moving product down the chain. The bullwhip effect can be eliminated by synchronizing the supply chain.
Bundle: A group of products that are shipped together as an unassembled unit.
Bundling: An occurrence where two or more products are combined into one transaction for a single price.
Burn Rate: The rate of consumption of cash in a business. Used to determine cash requirements on an on-going basis. A burn rate of $50,000 would mean the company spends $50,000 a month above any incoming cash flow to sustain its business. Entrepreneurial companies will calculate their burn rate in order to understand how much time they have before they need to raise more money, or show a positive cash flow.
Business Application: Any computer program, set of programs, or package of programs created to solve a particular business problem or function.
Business Continuity Plan (BCP): A contingency plan for sustained operations during periods of high risk, such as labor unrest or natural disaster. CSCMP provides suggestions for helping companies do continuity planning in their Securing the Supply Chain research. A copy of this research is available on CSCMP's web site at www.cscmp.org.
Business Logistics: The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.
Business Plan: (1) A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow (source and application of funds) statement. A business plan is usually stated in terms of dollars and grouped by product family. The business plan is then translated into synchronized tactical functional plans through the production planning process (or the sales and operations planning process). Although frequently stated in different terms (dollars versus units), these tactical plans should agree with each other and with the business plan. (2) A document consisting of the business details (organization, strategy, and financing tactics) prepared by an entrepreneur to plan for a new business.
Business Performance Measurement (BPM): A technique that uses a system of goals and metrics to monitor performance. Analysis of these measurements can help businesses periodically set business goals, then provide feedback to managers on progress towards those goals. A specific measure can be compared to itself over time, compared with a present target, or evaluated along with other measures.
Business Process Outsourcing (BPO): The practice of outsourcing non-core internal functions to third parties. Functions typically outsourced include logistics, accounts payable, accounts receivable, payroll, and human resources. Other areas can include IT development or complete management of the IT functions of the enterprise.
Business Process Reengineering (BPR): The fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements.
Business-to-Business (B2B): As opposed to business-to-consumer (B2C). Many companies are now focusing on this strategy, and their web sites are aimed at businesses (think wholesale) and only other businesses can access or buy products on the site. Internet analysts predict this will be the biggest sector on the web.
Business-to-Consumer (B2C): The hundreds of e-commerce web sites that sell goods directly to consumers are considered B2C. This distinction is important when comparing web sites that are B2B as the entire business model, strategy, execution, and fulfillment is different.
Business Unit: A division or segment of an organization generally treated as a separate profit-and-loss center.
Buyer: An enterprise that arranges for the acquisition of goods or services and agrees to payment terms for such goods or services.
Buyer Behavior: The way individuals or organizations behave in a purchasing situation. The customer-oriented concept finds out the wants, needs, and desires of customers and adapts resources of the organization to deliver need-satisfying goods and services.
C & F: See Cost and Freight
Cab Extenders: Also called gap seals, which help to close the gap between the tractor and the trailer
Cabotage: A federal law that requires coastal and inter-coastal traffic to be carried in U.S.-built and registered ships.
CAE:See Computer-Aided Engineering (CAE).
CAD:See Cash Against Documents.
CADEX: See Customs Automated Data Exchange System
CAF: *See Currency Adjustment Factor (CAF)
Cage: (1) A secure enclosed area for storing highly valuable items (2) A pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored well above the warehouse floor.
Caged: Referring to the practice of placing high-value or sensitive products in a fenced off area within a warehouse.
Calendar Days: The conversion of working days to calendar days is based on the number of regularly scheduled workdays per week in your manufacturing calendar. Calculation: To convert from working days to calendar days: if work week = 4 days, multiply by 1.75; = 5 days, multiply by 1.4; = 6 days, multiply by 1.17
Call Center: A facility housing personnel who respond to customer phone queries. These personnel may provide customer service or technical support. Call center services may be in house or outsourced. Synonym: Customer Interaction Center.
Can-Order Point: An ordering system used when multiple items are ordered from one vendor. The can-order point is a point higher than the original order point. When any one of the items triggers an order by reaching the must-order point, all items below their can-order point are also ordered. The can-order point is set by considering is set by considering the additional holding cost that would be incurred if the item were ordered early.
Capacity Management: The concept that capacity should be understood, defined, and measured for each level in the organization to include market segments, products, processes, activities, and resources. In each of these applications, capacity is defined in a hierarchy of idle, non-productive, and productive views.
Capacity Planning: Assuring that needed resources (e.g., manufacturing capacity, distribution center capacity, transportation vehicles, etc.) will be available at the right time and place to meet logistics and supply chain needs.
Capacity: The physical facilities, personnel, and processes available to meet the product or service needs of customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service. Also see: Capacity Management
CAPEX: A term used to describe the monetary requirements (CAPital EXpenditure) of an initial investment in new machines or equipment.
Capital: The resources, or money, available for investing in assets that produce output.
CAPSTAN: Computer-Aided Planned Stowage and Networking system.
CARAT: Cargo Agents Reservation Air Waybill Issuance and Tracking.
Cargo: Merchandise carried by a means of transportation.
Carmack Amendment: An Interstate Commerce Act amendment that delineates the liability of common carriers and the bill of lading provisions.
Carnet: A Customs document permitting the holder to carry or send special categories of goods temporarily into certain foreign countries without paying duties or posting bonds.
Carousel: A rotating system of layers of bins and/or drawers that can store many small items using relatively little floor space.
Carrier: A firm that transports goods or people via land, sea, or air.
Carrier Assets: Items that a carrier owns (technically or outright) to facilitate the services they provide.
Carrier Certificate and Release Order: Used to advise customs of the shipment's details. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.
Carrier Liability: A common carrier is liable for all shipment loss, damage, and delay with the exception of that caused by act of God, act of a public enemy, act of a public authority, act of the shipper, and the goods' inherent nature.
Cartel: A group of companies that agree to cooperate rather than compete, in producing a product or service. Thus limiting or regulating competition.
Cartage: There are two definitions for this term: 1) charge for pick-up and delivery of goods 2) movement of goods locally (short distances).
Carton Flow Rack: A storage rack consisting of multiple lines of gravity flow conveyors.
Cash Against Documents (CAD): A method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.
Cash Conversion Cycle: 1) In retailing, the length of time between the sale of products and the cash payments for a company's resources. 2) In manufacturing, the length of time from the purchase of raw materials to the collection of accounts receivable from customers for the sale of products or services. Also see: Cash-to-Cash Cycle Time.
Cash In Advance (CIA): A method of payment for goods whereby the buyer pays the seller in advance of shipment of goods.
Cash-to-Cash Cycle Time: The time it takes for cash to flow back into a company after it has been spent for raw materials. Synonym: Cash Conversion Cycle. Calculation: Total Inventory Days of Supply + Days of Sales Outstanding - Average Payment Period for Material in Days.
Cash with Order (CWO): A method of payment for goods where cash is paid at the time of order, and the transaction becomes binding on both buyer and seller.
Catalog Channel: A call center or order processing facility that receives orders directly from the customer based on defined catalog offerings, and ships directly to the customer.
Category Management: The management of product categories as strategic business units. This practice empowers a category manager with full responsibility for the assortment decisions, inventory levels, shelf-space allocation, promotions, and buying. With this authority and responsibility, the category manager is able to more accurately judge the consumer buying patterns, product sales, and market trends of that category.
Cause-and-Effect Diagram: In quality management, a structured process used to organize ideas into logical groupings. Used in brainstorming and problem-solving exercises. Also known as Ishikawa or fish bone diagram.
CBT: *See Computer-Based Training (CBT)
CELL: A manufacturing or service unit consisting of a number of workstations, and the materials transport mechanisms and storage buffers that interconnect them.
Center-of-Gravity Approach: A supply chain planning methodology for locating distribution centers at approximately the location representing the minimum transportation costs between the plants, the distribution centers, and the markets.
Central Dispatching: The organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function which usually reports to the production control department and the shop manufacturing departments.
Centralized Authority: The restriction of authority to make decisions to few managers.
Centralized Inventory Control: Inventory decision-making (for all SKUs) exercised from one office or department for an entire company.
Certificate of Compliance: A supplier's certification that the supplies or services in question meet specified requirements.
Certificate of Insurance: A negotiable document indicating that insurance has been secured under an open policy to cover loss or damage to a shipment while in transit.
Certificate of Origin: A document containing an affidavit to prove the origin of imported goods. Used for customs and foreign exchange purposes.
Certificate of Public Convenience and Necessity: The grant of operating authority that common carriers receive. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service. The certificate may specify the commodities the carrier may haul, and the routes it may use.
Certificated Carrier: A for-hire air carrier that is subject to economic regulation and requires an operating certification to provide service.
Certified Supplier: A status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required.
CFS:See Container Freight Station (CFS).
CFS/CFS:See Container Freight Station to Container Freight Station (CFS/CFS).
Chain of Customers: The sequence of customers who, in turn, consume the output of each other, forming a chain. For example, individuals are customers of a department store which in turn is the customer of a producer who is the customer of a material supplier.
Change Management: The business process that coordinates and monitors all changes to the business processes and applications operated by the business, as well as to their internal equipment, resources, operating systems, and procedures. The change management discipline is carried out in a way that minimizes the risk of problems that will affect the operating environment and service delivery to the users.
Change Order: A formal notification that a purchase order or shop order must be modified in some way. This change can result from a revised quantity, date, or specification by the customer; an engineering change; a change in inventory requirement data; etc.
Changeover: Process of making necessary adjustments to change or switchover the type of products produced on a manufacturing line. Changeovers usually lead to downtime and for the most part, companies try to minimize changeover time to help reduce costs.
Channel:1. A method whereby a business dispenses its product, such as a retail or distribution channel, call center, or a web-based electronic storefront. 2. A push technology that allows users to subscribe to a web site to browse offline, automatically display updated pages on their screen savers, and download or receive notifications when pages in the web site are modified. Channels are available only in browsers that support channel definitions such as Microsoft Internet Explorer version 4.0.
Channel Conflict: This occurs when various sales channels within a company's supply chain compete with each other for the same business. An example is where a retail channel is in competition with a web-based channel set up by the company.
Channel Partners: Members of a supply chain (i.e., suppliers, manufacturers, distributors, retailers, etc.) who work in conjunction with one another to manufacture, distribute, and sell a specific product.
Channels of Distribution: Any series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer. Also see: Distribution Channel.
Chargeable Weight: The shipment weight used in determining freight charges. The chargeable weight may be the dimensional weight or, for container shipments, the gross weight of the shipment less the tare weight of the container.
Charging Area: A warehouse area where a company maintains battery chargers and extra batteries to support a fleet of electrically powered materials handling equipment. The company must maintain this area in accordance with government safety regulations.
Chassis: A specialized framework that carries a rail or marine container
Chock: A wedge, usually made of hard rubber or steel, that is firmly placed under the wheel of a trailer, truck, or boxcar to stop it from rolling.
CI:See Continuous Improvement (CI).
CIA: *See Cash In Advance (CIA)
CIF: *See Cost, Insurance, Freight (CIF)
City Driver: A motor carrier driver who drives a local route as opposed to a long-distance, intercity route.
Civil Aeronautics Board: A federal regulatory agency that implemented economic regulatory controls over air carriers.
CL: Carload rail service requiring shipper to meet minimum weight.
Claim: A charge made against a carrier for loss, damage, delay, or overcharge.
Class I Carrier: A classification of regulated carriers based upon annual operating revenues -- motor carriers of property; $5 million; railroads; $50 million; motor carriers of passengers; $3 million.
Class II Carrier: A classification of regulated carriers based upon annual operating revenues -- motor carriers of property: $1-$5 million; railroads: $10-$50 million; motor carriers of passengers: $3 million.
Class III Carrier: A classification of regulated carriers based upon annual operating revenues -- motor carriers of property: $1 million; railroads $10 million.
Class 1 Railroad: A line haul freight railroad of US ownership with operating revenue in excess of $272.0 million. There are seven (7) Class 1 Railroads in the United States. Two Mexican and two Canadian railroads would also qualify, if they were US companies.
Class Rates: A grouping of goods or commodities under one general heading. All the items in the group make up a class. The freight rates that apply to all items in the class are called "class rates."
Classification: An alphabetical listing of commodities, the class or rating into which the commodity is placed, and the minimum weight necessary for the rate discount; used in the class rate structure.
Classification yard: A railroad terminal area where railcars are grouped together to form train units.
Clearance: A document stating that a shipment is free to be imported into the country after all legal requirements have been met.
Clearinghouse: A conventional or limited-purpose entity generally restricted to providing specialized services, such as clearing funds or settling accounts.
CLM: Council of Logistics Management, now known as The Council of Supply Chain Management Professionals.
Closed Loop MRP: A system build around material requirements planning that includes the additional planning processes of production planning (sales and operations planning), master production scheduling, and capacity requirements planning. Once this planning phase is complete and the plans have been accepted as realistic and attainable, the execution processes come into play. These processes include the manufacturing control process of input-output (capacity) measurement, detailed scheduling and dispatching, as well as anticipated delay reports from both the plant and suppliers, supplier scheduling, and so on. The term "closed loop implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so that the planning can be kept valid at all times..
CMI:See Co-Managed Inventory
CO: Carbon monoxide
CO2: Carbon dioxide
Co-Destiny: The evolution of a supply chain from intra-organizational management to inter-organizational management.
Co-Packer: A contract co-packer produces goods and/or services for other companies, usually under the other company's label or name. Co-packers are more frequently seen in consumer packaged goods and foods.
Co-Managed Inventory (CMI): A form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise.
Coastal Carriers: Water carriers that provide service along coasts serving ports on the Atlantic or Pacific Oceans or on the Gulf of Mexico.
Code: A numeric, or alphanumeric representation of text for exchanging commonly-used information. For example: commodity codes, carrier codes.
Codifying: The process of detailing a new standard.
COFC: See Container on Flat Car
COGS:See Cost-of-Goods Sold (COGS).
Collaborative Planning, Forecasting, and Replenishment (CPFR): (1) A collaboration process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials, to production and delivery of final products to end customers. Collaboration encompasses business planning, sales forecasting, and all operations required to replenish raw materials and finished goods. (2) A process philosophy for facilitating collaborative communications. CPFR is considered a standard, endorsed by the Voluntary Inter-Industry Commerce Standards.
Collect Freight: Freight payable to the carrier at the port of discharge or ultimate destination. The consignee does not pay the freight charge if the cargo does not arrive at the destination.
Collective Paper: All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
Combi Aircraft: An aircraft specially designed to carry unitized cargo loads on the upper deck of the craft, forward of the passenger area.
Combined Lead Time:See Cumulative Lead Time
Commercial Invoice: A document created by the seller. It is an official document which is used to indicate, among other things, the name and address of the buyer and seller, the product(s) being shipped, and their value for customs, insurance, or other purposes.
Commercial zone: The area surrounding a city or town to which rate carriers quote for the city or town also apply; the ICC defines the area.
Committed Capability: The portion of the production capability that is currently in use, or is scheduled for use.
Committee of American Steamship Lines: An industry association representing subsidized U.S. flag steamship firms.
Commodities: Any article exchanged in trade, most commonly used to refer to raw materials and agricultural products.
Commodities Clause: A clause that prohibits railroads from hauling commodities that they produced, mined, owned, or had an interest in.
Commodity Buying: Grouping like parts or materials under one buyer's control for the procurement of all requirements to support production.
Commodity Code: A code describing a commodity or a group of commodities pertaining to goods classification. This code can be carrier tariff or regulating in nature.
Commodity Procurement Strategy: The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems.
Commodity Rate: A rate for a specific commodity and its origin-destination.
Common Carrier: Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic. Antonym: Private Carrier.
Common Carrier Duties: Common carriers must serve, deliver, charge reasonable rates, and not discriminate.
Common Cost: A cost that a company cannot directly assign to particular segments of the business; a cost that the company incurs for the business as a whole.
Commuter: An exempt for-hire air carrier that publishes a time schedule on specific routes; a special type of air taxi.
Company Culture: A system of values, beliefs, and behaviors inherent in a company. To optimize business performance, top management must define and create the necessary culture.
Comparative Advantage: A principle based on the assumption that an area will specialize in producing goods for which it has the greatest advantage or the least comparative disadvantage.
Competitive Advantage: Value created by a company for its customers that clearly distinguishes it from the competition, provides its customers a reason to remain loyal.
Competitive Benchmarking: Benchmarking a product or service against competitors. Also see: Benchmarking.
Competitive Bid: A price/service offering by a supplier that must compete with offerings from other suppliers.
Complete and On-Time Delivery (COTD): A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time.
Complete Manufacture to Ship Time: Average time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer.
Compliance: Meaning that products, services, processes, and/or documents comply with requirements.
Component: Material that will contribute to a finished product but is not the finished product itself. Examples include tires for an automobile, power supply for a personal computer, or a zipper for a ski parka.
Computer-Aided Engineering (CAE): The use of computers to model design options to stimulate their performance.
Computer-Based Training: Training that is delivered via computer workstation and includes all training and testing materials.
Conference: A group of vessel operators joined for the purpose of establishing freight rates.
Conference Carrier: An ocean carrier who is a member of an association known as a "conference." The purpose of the conference is to standardize shipping practices, eliminate freight rate competition, and provide regularly scheduled service between specific ports.
Configuration: The arrangement of components as specified to produce an assembly.
Configure/Package to Order: A process where the trigger to begin to manufacture, final assembly, or packaging of a product is an actual customer order or release rather than a market forecast. In order to be considered a configure-to-order environment, less than 20% of the value added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at time of order receipt.
Confirmation: With regards to EDI, a formal notice (by message or code) from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or has been retrieved by the addressee.
Confirming Order: A purchase order issued to a supplier listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document.
Conformance: An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation. Synonym: Compliance.
Conrail: The Consolidated Rail Corporation established by the Regional Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast; the 4-R Act of 1976 provided funding.
Consignee: The party to whom goods are shipped and delivered. The receiver of a freight shipment.
Consignment: (1) A shipment that is handled by a common carrier. (2) The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold. Also see: Consignment Inventory.
Consignment Inventory: (1) Goods or products that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. (2) Goods or products which are owned by the vendor until they are sold to the consumer.
Consignor: The party who originates a shipment of goods (shipper). The sender of a freight shipment, usually the seller.
Consolidation: Combining two or more shipments in order to realize lower transportation rates. Inbound consolidation from vendors is called make-bulk consolidation; outbound consolidation to customers is called break-bulk consolidation.
Consolidation Point: The location where consolidation takes place.
Consolidator: An enterprise that provides services to group shipments, orders, and/or goods to facilitate movement.
Consolidator's Bill of Lading: A bill of lading issued by a consolidator as a receipt for merchandise that will be grouped with cargo obtained from other shippers. See also House Air Waybill.
Consortium: A group of companies that works together to jointly produce a product, service, or project.
Constraint: A bottleneck, obstacle, or planned control that limits throughput or the utilization of capacity.
Consul: A government official residing in a foreign country, charged with representing the interests of his or her country and its nationals.
Consular Declaration: A formal statement made to the consul of a country describing merchandise to be shipped to that consul's country. Approval must be obtained prior to shipment.
Consular Documents: Special forms signed by the consul of a country to which cargo is destined.
Consular Invoice: A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's custom.
Consumer-Centric Database: Database with information about a retailer's individual consumers used primarily for marketing and promotion.
Consumption Entry: An official Customs form used for declaration of reported goods, also showing the total duty due on such transaction.
Container: (1) A box, typically 10 to 40 feet long, which is primarily used for ocean freight shipments. For travel to and from ports, containers are loaded onto truck chassis or on railroad flatcars. (2) The packaging, such as a carton, case, box, bucket, drum, bin, bottle, bundle, or bag, that an item is packed and shipped in.
Container Chassis: A vehicle built for the purpose of transporting a container so that, when a container and chassis are assembled, the produced unit serves as a road trailer.
Container Depot: The storage area for empty containers.
Container Freight Station (CFS): The location designated by carriers for receipt of cargo to be packed into containers/equipment by the carrier. At destination, CFS is the location designated by the carrier for unpacking of cargo from equipment/containers.
Container Freight Station Charge: The charge assessed for services performed at the loading or discharge location.
Container Freight Station to Container Freight Station (CFS/CFS): A type of steamship-line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-than-container load shipments.
Container I.D.: An identifier assigned to a container by a carrier. See also: Equipment ID.
Containerization: A shipment method in which commodities are placed in containers, and after initial loading, the commodities, per se, are not rehandled in shipment until they are unloaded at the destination.
Container on Flat Car (COFC): A container that is transported on a rail flatcar. It can be shipped via tractor/trailer using a chassis as the wheel section.
Container Terminal: An area designated to be used for the stowage of cargo in containers that may be accessed by truck, rail, or ocean transportation.
Container Vessel: A vessel specifically designed for the carriage of containers.
Container Yard: The location designated by the carrier for receiving, assembling, holding, storing, and delivering containers, and where containers may be picked up by shippers or redelivered by consignees.
Container Yard to Container Yard (CY/CY): A type of steamship-line service in which freight is transported from origin container yard to destination container yard.
Contingency Planning: Preparing to deal with calamities (e.g., floods) and noncalamitous situations (e.g., strikes) before they occur.
Continuous Flow Distribution (CFD): The streamlined pull of products in response to customer requirements while minimizing the total costs of distribution.
Continuous-Flow, Fixed-Path Equipment: