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Implied Warranty
A specific assurance made by the seller concerning the
performance , quality or character of the goods or services
sold. An express warranty delineates the rights and
obligations of the parties if the item / service is defective.
The term is also known as Guarantee
Import Declaration
Documents used to inform the government
of an importing country about the nature, value and origin of
goods being imported
Import License
It's a permit from a national government
to bring goods into the country. A license authorises anybody
to import specified goods
Incidental damages
Expenses reasonably incurred in the
inspection, receipt, transportation, and care of goods
rightfully rejected by a purchaser.
INCOTERMS
INCOTERMS are international rules for
the interpretation of terms used in foreign trade contracts,
recognised worldwide, developed by the
International Chamber of Commerce to define sellers' and
buyers' responsibilities.
Indefinite Delivery Contracts
Broadly ,there are three types of
indefinite delivery or term type contracts viz. Indefinite
quantity indefinite delivery contracts, indefinite quantity
definite delivery contracts and requirements contracts
Indemnification
This clause , also known as "hold
harmless", "defend" or "indemnify" is used to protect a
purchaser or supplier from loss or damage. The
words "hold harmless" and "indemnify" refer to getting
reimbursed for penalties or liabilities incurred by one party
because of another's action and pertain to monetary or
financial loss.
The word "defend" imposes an obligation on one contracting
party to defend the other in a legal action and to incur the
cost of such action. These clauses are used in Purchase Orders
Independent Demand
Demand not directly related to
the demand for other items or end items produced by
the organisation
Inspection
It refers to checking
the quality of products and services to determine whether they
meet the specifications. Usually, purchaser has the right to
do inspection before accepting the materials
Igloos
Pallets and containers used in air
transportation; the igloo shape is designed to fit the
internal wall contours of a narrow body airplane.
Import
Movement of products from one country into another. The
import of automobiles from Germany to the U.S. is an example.
Import/Export License
Official authorization issued by a government allowing the
shipping or delivery of a product across national boundaries.
Inbound Logistics
The movement of materials from suppliers and vendors into
production processes or storage facilities.
Incentive rate
A rate designed to induce the shipper to ship heavier
volumes per shipment.
Independent action
A carrier that is a member of a rate bureau has the right
to publish a rate that differs from the rate published by the
rate bureau.
Independent Demand Item Management Models
Models for the management of items whose demand is not
strongly influenced by other items managed by the same
company. These models can be characterized as follows:
(1) stochastic or deterministic, depending on the variability
of demand and other factors;
(2) fixed quantity, fixed cycle, or hybrid - (optional
replenishment).
Indirect Retail Locations
A retail location that ultimately sells your product to
consumers, but who purchases your products from an
intermediary, like a distributor or wholesaler.
Infinite Loading
Calculation of the capacity required at work centers in
the time periods required regardless of the capacity available
to perform this work.
Insourcing
The opposite of outsourcing, that is, a serve performed
in-house.
Integrated Logistics
A comprehensive, system-wide view of the entire supply
chain as a single process, from raw materials supply through
finished goods distribution. All functions that make up the
supply chain are managed as a single entity, rather than
managing individual functions separately.
Inter-coastal carriers
Water carriers that transport freight between East and
West Coast ports, usually by way of the Panama Canal.
Inter-corporate hauling
A private carrier hauling the goods of a subsidiary and
charging the subsidiary a fee: this is legal if the subsidiary
is wholly owned (100%) or if the private carrier has common
carrier authority.
Interline
Two or more motor carriers working together to haul the
shipment to a destination. Carrier equipment may be
interchanged from one carrier to the next, but usually the
shipment is re-handled without the equipment.
Intermediately Positioned Warehouse
A warehouse located between customers and manufacturing
plants to provide increased customer service and reduced
distribution cost.
Intermittent-flow, fixed-path equipment
Materials handling devices that include cranes, monorails,
and stacker cranes.
Intermodal Transportation
Transporting freight by using two or more transportation
modes such as by truck and rail or truck and oceangoing
vessel.
In-transit Inventory
Material moving between two or more locations, usually
separated geographically; for example, finished goods being
shipped from a plant to a distribution center. In-transit
inventory is an easily overlooked component of total supply
chain availability.
Intrinsic Forecast Method
In forecasting, a forecast based on internal factors, such
as an average of past sales.
Inventory Carrying Cost
One of the elements comprising a company's total
supply-chain management costs. These costs consist of the
following:
1.
Opportunity Cost:
The opportunity cost of holding inventory. This should be
based on your company's own cost of capital standards using
the following formula. Calculation: Cost of Capital x Average
Net Value of Inventory
2.
Shrinkage:
The costs associated with breakage, pilferage, and
deterioration of inventories. Usually pertains to the loss of
material through handling damage, theft, or neglect.
3.
Insurance and Taxes:
The cost of insuring inventories and taxes associated with the
holding of inventory.
4. Total
Obsolescence for Raw Material, WIP, and Finished Goods
Inventory:
Inventory reserves taken due to obsolescence and scrap and
includes products exceeding the shelf life, i.e. spoils and is
no good for use in its original purpose (do not include
reserves taken for Field Service Parts).
5. Channel
Obsolescence:
Aging allowances paid to channel partners, provisions for
buy-back agreements, etc. Includes all material that goes
obsolete while in a distribution channel. Usually, a
distributor will demand a refund on material that goes bad
(shelf life) or is no longer needed because of changing needs.
6. Field
Service Parts Obsolescence:
Reserves taken due to obsolescence and scrap. Field Service
Parts are those inventory kept at locations outside the four
walls of the manufacturing plant i.e., distribution center or
warehouse.
Inventory Deployment
A technique for strategically positioning inventory to
meet customer service levels while minimizing inventory and
storage levels. Excess inventory is replaced with information
derived through monitoring supply, demand and inventory at
rest as well as in motion.
Inventory Management
The process of ensuring the availability of products
through inventory administration.
Inventory Planning Systems
The systems that help in strategically balancing the
inventory policy and customer service levels throughout the
supply chain. These systems calculate time-phased order
quantities and safety stock, using selected inventory
strategies. Some inventory planning systems conduct what-if
analysis and that compares the current inventory policy with
simulated inventory scenarios and improves the inventory ROI.
Inventory Turns
The cost of goods sold divided by the average level of
inventory on hand. This ratio measures how many times a
company's inventory has been sold during a period of time.
Operationally, inventory turns are measured as total
throughput divided by average level of inventory for a given
period; How many times a year the average inventory for a firm
changes over, or is sold.
Inventory Velocity
The speed with which inventory moves through a defined
cycle (i.e., from receiving to shipping)
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