Main page


1 2 3 4 5 8 A B C D E F G H I J K L M N O P Q R T U V W X Y Z 

Failure Modes Effects Analysis (FMEA)
Fair return
Fair value
Fair-share Quantity Logic
Fast and Secure Trade (FAST)
Federal Aviation Administration
Federal Maritime Commission
Feeder Railroad Development Program
Field Finished Goods
Field Service
Field Service Parts
Field warehouse
File Transfer Protocol (FTP)
Filed rate doctrine
Fill Rate
Fill Rates by Order
Final Assembly Schedule (FAS):
Final Assembly:
Finance lease:
Financial responsibility:
Finished Goods Inventory (FG or FGI):
Finite Forward Scheduling:
Finite Scheduling:
Firm Planned Order:
First In, First Out (FIFO):
First Mover Advantage:
First Pass Yield:
Fixed Costs:
Fixed interval inventory model:
Fixed Interval Order System:
Fixed Order Quantity System:
Fixed Order Quantity:
Fixed Overhead:
Fixed Reorder Cycle Inventory Model:
Fixed Reorder Quantity Inventory Model:
Fixed-Location Storage:
Fixed-Period Requirements:
Flag of convenience:
Flat File:
Flexible Specialization:
Flexible-path equipment:
Floor-Ready Merchandise (FRM):
Flow rack:
FOB Destination:
FOB Origin:
For-hire carrier:
Forecast Accuracy:
Forecast Cycle:
Foreign Trade Zone (FTZ):
Forklift truck:
Form utility:
Forty-foot equivalent unit (FEU):
Four P's:
Four Wall Inventory:
Fourier Series:
Fourth-Party Logistics (4PL):
Free Alongside Ship (FAS):
Free on Board (FOB):
Freezing inventory balances:
Freight bill:
Freight Consolidation:
Freight Forwarder:
Freight Forwarders Institute:
Freight-all-kinds (FAK):
Frozen Zone:
Full-Service Leasing:
Full-time Equivalents (FTE):
Fully allocated cost:
Functional Acknowledgment (FA):
Functional Group:
Functional Silo:
Future order:

Fabricator - A manufacturer that turns the product of a raw materials supplier into a larger variety of products. A fabricator may turn steel rods into nuts, bolts, and twist drills, or may turn paper into bags and boxes.

Facilities - The physical plant, distribution centers, service centers, and related equipment.

Failure Modes Effects Analysis (FMEA) - A pro-active method of predicting faults and failures so that preventive action can be taken.

Fair return - A level of profit that enables a carrier to realize a rate of return on investment or property value that the regulatory agencies deem acceptable for that level of risk.

Fair value - The value of the carrier's property

Fair-share Quantity Logic - In inventory management, the process of equitably allocating available stock among field distribution centers. Fair-share quantity logic is normally used when stock available from a central inventory location is less than the cumulative requirements of the field stocking locations. The use of fair-share quantity logic involves procedures that "push" stock out to the field, instead of allowing the field to "pull" in what is needed. The objective is to maximize customer service from the limited available inventory.

FAK - See Freight all kinds

FAS - See Final Assembly Schedule

FAST - See Fast and Secure Trade

Fast and Secure Trade (FAST) - U.S. Customs program that allows importers on the U.S./Canada border to obtain expedited release for qualifying commercial shipments.

Feature - A distinctive characteristic of a good or service. The characteristic is provided by an option, accessory, or attachment. For example, in ordering a new car, the customer must specify an engine type and size (option), but need not necessarily select an air conditioner (attachment).

Federal Aviation Administration - The federal agency charged with administering federal safety regulations governing air transportation.

Federal Maritime Commission - A regulatory agency that controls services, practices, and agreements of international water common carriers and noncontiguous domestic water carriers.

Feeder Railroad Development Program - Any financially responsible person (except Class I and Class II carriers) with ICC approval can acquire a rail line having a density of less than 3 million gross ton-miles per year.

FEU - See Forty-foot equivalent unit

FG - See Finished Goods Inventory

FGI - See Finished Goods Inventory

Field Finished Goods - Inventory which is kept at locations outside the four walls of the manufacturing plant (i.e., distribution center or warehouse).

Field Service - See After-Sale Service

Field Service Parts - Parts inventory kept at locations outside the four walls of the manufacturing plant (i.e., distribution center or warehouse).

Field warehouse - A warehouse on the property of the owner of the goods that stores goods that are under the custody of a bona fide public warehouse manager. The public warehouse receipt is used as collateral for a loan.

FIFO - See First In, First Out

File Transfer Protocol (FTP) - The Internet service that transfers files from one computer to another, over standard phone lines.

Filed rate doctrine - The legal rate the common carrier may charge

Fill Rate - The percentage of order items that the picking operation actually fills within a given period of time.

Fill Rates by Order - Whether orders are received and released consistently, or released from a blanket purchase order, this metric measures the percentage of ship-from-stock orders shipped within 24 hours of order "release". Make-to-Stock schedules attempt to time the availability of finished goods to match forecasted customer orders or releases. Orders that were not shipped within 24 hours due to consolidation but were available for shipment within 24 hours are reported separately. In calculating elapsed time for order fill rates, the interval begins at ship release and ends when material is consigned for shipment. Calculation: [Number of orders filled from stock shipped within 24 hours of order release] / [Total number of stock orders]  Note: The same concept of fill rates can be applied to order lines and individual products to provide statistics on percentage of lines shipped completely and percentage of products shipped completely.

Final Assembly Schedule (FAS): - A schedule of end items to finish the product for specific customers' orders in a make-to-order or assemble-to-order environment. It is also referred to as the finishing schedule because it may involve operations other than just the final assembly

Final Assembly: - The highest level assembled product, as it is shipped to customers. This terminology is typically used when products consist of many possible features and options that may only be combined when an actual order is received. Also see: End Item, Assemble to Order

Finance lease: - An equipment-leasing arrangement that provides the lessee with a means of financing for the leased equipment

Financial responsibility: - Motor carriers are required to have body injury and property damage (not cargo) insurance or not less than $500,000 per incident per vehicle

Finished Goods Inventory (FG or FGI): - Products completely manufactured, packaged, stored, and ready for distribution. Also see: End Item

Finite Forward Scheduling: - An equipment scheduling technique that builds a schedule by proceeding sequentially from the initial period to the final period while observing capacity limits. A Gantt chart may be used with this technique. Also see: Finite Scheduling

Finite Scheduling: - A scheduling methodology where work is loaded into work centers such that no work center capacity requirement exceeds the capacity available for that work center. See: drum-buffer-rope, finite forward scheduling.

Firewall: - A computer term for a method of protecting the files and programs on one network from users on another network. A firewall blocks unwanted access to a protected network while giving the protected network access to networks outside of the firewall. A company will typically install a firewall to give users access to the Internet while protecting their internal information.

Firm Planned Order: - A planned order which has been committed to production. Also see: Planned Order

First In, First Out (FIFO): - Warehouse term meaning first items stored are the first used. In accounting this tem is associated with the valuing of inventory such that the latest purchases are reflected in book inventory. Also see: Book Inventory

First Mover Advantage: - Market innovator, putting the company in the leadership position.

First Pass Yield: - The ratio of usable, specification conforming output from a process to its input, achieved without rework or reprocessing.

Fixed Costs: - Costs, which do not fluctuate with business volume in the short run. Fixed costs include items such as depreciation on buildings and fixtures.

Fixed interval inventory model: - A setup wherein each time an order is placed for an item, the same (fixed) quantity is ordered.

Fixed Interval Order System: - See Fixed Reorder Cycle Inventory Model

Fixed Order Quantity System: - See Fixed Reorder Cycle Inventory Model

Fixed Order Quantity: - A lot-sizing technique in MRP or inventory management that will always cause planned or actual orders to be generated for a predetermined fixed quantity, or multiples thereof if net requirements for the period exceed the fixed order quantity.

Fixed Overhead: - Traditionally, all manufacturing costs, other than direct labor and direct materials, that continue even if products are not produced. Although fixed overhead is necessary to produce the product, it cannot be directly traced to the final product. Also see: Indirect Cost

Fixed Reorder Cycle Inventory Model: - A form of independent demand management model in which an order is placed every "n" time units. The order quantity is variable and essentially replaces the items consumed during the current time period. Let "M" be the maximum inventory desired at any time, and let x be the quantity on hand at the time the order is placed. Then, in the simplest model, the order quantity will be M x. The quantity M must be large enough to cover the maximum expected demand during the lead time plus a review interval. The order quantity model becomes more complicated whenever the replenishment lead time exceeds the review interval, because outstanding orders then have to be factored into the equation. These reorder systems are sometimes called fixed-interval order systems, order level systems, or periodic review systems. Synonyms: Fixed- Interval Order System, Fixed-Order Quantity System, Order Level System, Periodic Review System, Time-Based Order System. Also see: Fixed Reorder Quantity Inventory Model, Hybrid Inventory System, Independent Demand Item Management Models,

Fixed Reorder Quantity Inventory Model: - A form of independent demand item management model in which an order for a fixed quantity is placed whenever stock on hand plus on order reaches a predetermined reorder level. The fixed order quantity may be determined by the economic order quantity, by a fixed order quantity (such as a carton or a truckload), or by another model yielding a fixed result. The reorder point may be deterministic or stochastic, and in either instance is large enough to cover the maximum expected demand during the replenishment lead time. Fixed reorder quantity models assume the existence of some form of a perpetual inventory record or some form of physical tracking, e.g., a two-bin system that is able to determine when the reorder point is reached. Synonym: Fixed Order Quantity System, Lot Size System, Order Point-Order Quantity System, Quantity Based Order System. Also see: Fixed Reorder Cycle Inventory Model, Hybrid Inventory System, Independent Demand Item Management Models, Optional Replenishment Model, Order Point Order Management System

Fixed-Location Storage: - A method of storage in which a relatively permanent location is assigned for the storage of each item in a storeroom or warehouse. Although more space is needed to store parts than in a random-location storage system, fixed locations become familiar, and therefore a locator file may not be needed. Also see: Random-Location Storage

Fixed-Period Requirements: - A lot-sizing technique that sets the order quantity to the demand for a given number of periods. Also see: Discrete Order Quantity

Flag of convenience: - A shipowner registers a ship in a nation that offers conveniences in the areas of taxes, manning, and safety requirements

Flat File: - A computer term which refers to any file having fixed-record length, or in EDI, the file produced by EDI translation software to serve as input to the interface. Usually includes the same fields as the original file, but each field is expanded to its maximum length. Does not have delimiters.

Flat: - A loadable platform having no superstructure whatever but having the same length and width as the base of a container and equipped with top and bottom corner fittings. This is an alternative term used for certain types of specific purpose containers - namely platform containers and platform-based containers with incomplete structures

Flatcar: - A rail car without sides

Flexibility: - Ability to respond quickly and efficiently to changing customer and consumer demands.

Flexible Specialization: - a strategy based on multi-use equipment, skilled workers and innovative senior management to accommodate the continuous change that occurs in the marketplace.

Flexible-path equipment: - Materials handling devices that include hand trucks and forklifts.

Float: - The time required for documents, payments, etc. to get from one trading partner to another.

Floor-Ready Merchandise (FRM): - Goods shipped by suppliers to retailers with all necessary tags, prices, security devices, etc. already attached, so goods can be cross docked rapidly through retail DCs, or received directly at stores.

Flow rack: - Storage rack that utilizes shelves (metal) that are equipped with rollers or wheels. Such an arrangement allows product and materials to "flow" from the back of the rack to the front and therein making the product more accessible for smallquantity order-picking.

FMEA: - See Failure Modes Effects Analysis

FOB Destination: - Title passes at destination, and seller has total responsibility until shipment is delivered.

FOB Origin: - Title passes at origin, and buyer has total responsibility over the goods while in shipment.

FOB: - See Free on Board

For-hire carrier: - A carrier that provides transportation service to the public on a fee basis.

Forecast Accuracy: - Measures how accurate your forecast is as a percent of actual units or dollars shipped, calculated as 1 minus the absolute value of the difference between forecasted demand and actual demand, as a percentage of actual demand. Calculation: [1-(|Sum of Variances|/Sum of Actual)]

Forecast Cycle: - Cycle time between forecast regenerations that reflect true changes in marketplace demand for shippable endproducts.

Forecast: - An estimate of future demand. A forecast can be constructed using quantitative methods, qualitative methods, or a combination of methods, and it can be based on extrinsic (external) or intrinsic (internal) factors. Various forecasting techniques attempt to predict one or more of the four components of demand: cyclical, random, seasonal, and trend. Also see: Box-Jenkins Model, Exponential Smoothing Forecast, Extrinsic Forecasting Method, Intrinsic Forecasting Method, Qualitative Forecasting Method, Quantitative Forecasting Method

Forecasting: - Predictions of how much of a product will be purchased by customers. Relies upon both quantitative and qualitative methods. Also see: Forecast

Foreign Trade Zone (FTZ): - An area or zone set aside at or near a port or airport, under the control of the U.S. Customs Service, for holding goods duty-free pending customs clearance.

Forklift truck: - A machine-powered device that is used to raise and lower freight and to move freight to different warehouse locations.

Form utility: - The value created in a good by changing its form, through the production process.

Forty-foot equivalent unit (FEU): - A standard size intermodal container.

Four P's: - A set of marketing tools to direct the business offering to the customer. The four P's are product, price, place, and promotion.

Four Wall Inventory: - The stock which is contained within a single facility or building.

Fourier Series: - In forecasting, a form of analysis useful for forecasting. The model is based on fitting sine waves with increasing frequencies and phase angles to a time series.

Fourth-Party Logistics (4PL): - Differs from third party logistics in the following ways

Free Alongside Ship (FAS): - A term of sale indicating the seller is liable for all changes and risks until the goods sold are delivered to the port on a dock that will be used by the vessel. Title passes to the buyer when the seller has secured a clean dock or ship's receipt of goods.

Free on Board (FOB): - Contractual terms between a buyer and a seller, that define where title transfer takes place.

Freezing inventory balances: - In most cycle counting programs the term "freezing" refers to copying the current on-hand inventory balance into the cycle count file. This may also be referred to as taking a snapshot of the inventory balance. It rarely means that the inventory is actually frozen in a way that prevents transactions from occurring.

Freight bill: - The carrier's invoice for transportation charges applicable to a freight shipment.

Freight Consolidation: - The grouping of shipments to obtain reduced costs or improved utilization of the transportation function. Consolidation can occur by market area grouping, grouping according to scheduled deliveries, or using third-party pooling services such as public warehouses and freight forwarders.

Freight Forwarder: - An organization which provides logistics services as an intermediary between the shipper and the carrier, typically on international shipments. Freight forwarders provide the ability to respond quickly and efficiently to changing customer and consumer demands and international shipping (import/export) requirements.

Freight Forwarders Institute: - The freight forwarder industry association.

Freight-all-kinds (FAK): - An approach to rate making whereby the ante is based only upon the shipment weight and distance

FRM: - See Floor Ready Merchandise

Frozen Zone: - In forecasting, this is the period in which no changes can be made to scheduled work orders based on changes in demand. Use of a frozen zone provides stability in the manufacturing schedule.

FTE: - See Full Time Equivalents

FTP: - See File Transfer Protocol

FTZ: - See Free Trade Zone

Fulfillment: - The act of fulfilling a customer order. Fulfillment includes order management, picking, packaging, and shipping.

Full-Service Leasing: - An equipment-leasing arrangement that includes a variety of services to support leased equipment (i.e., motor carrier tractors).

Full-time Equivalents (FTE): - Frequently organizations make use of contract and temporary employees

Fully allocated cost: - The variable cost associated with a particular unit of output plus an allocation of common cost.

Functional Acknowledgment (FA): - A specific EDI Transaction Set (997) sent by the recipient of an EDI message to confirm the receipt of data but with no indication as to the recipient application's response to the message. The FA will confirm that the message contained the correct number of lines, etc. via control summaries, but does not report on the validity of the data.

Functional Group: - Part of the hierarchical structure of EDI transmissions, a Functional Group contains one or more related Transaction Sets preceded by a Functional Group header and followed by a Functional Group trailer

Functional Silo: - A view of an organization where each department or functional group is operated independent of other groups within the organization. Each group is referred to as a "Silo". This is the opposite of an integrated structure.

Future order: - An order entered for shipment at some future date. This may be related to new products which are not currently available for shipment, or scheduling of future needs by the customer.