A warehouse on the property of the owner of the goods that
stores goods that are under the custody of a bonafide public
warehouse manager. The public warehouse receipt is used as
collateral for a loan.
Finished Goods Inventory (FG or FGI)
Products completely manufactured, packaged, stored, and
ready for distribution.
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.
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
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 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 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 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.
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 Flag of
convenience: A ship owner registers a ship in a nation that
offers conveniences in the areas of taxes, manning, and safety
requirements; Liberia and Panama are two nations known for
flags of convenience.
Title passes at destination, and seller has total
responsibility until shipment is delivered.
Title passes at origin, and buyer has total responsibility
over the goods while in shipment.
A carrier that provides transportation service to the
public on a fee basis.
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
Cycle time between forecast regenerations that reflect
true changes in marketplace demand for shippable end products.
A machine-powered device that is used to raise and lower
freight and to move freight to different warehouse locations.
Fourth-Party Logistics (4PL)
Differs from third party logistics in the following ways;
1)4PL organization is often a separate entity established as a
joint venture or long-term contract between a primary client
and one or more partners; 2)4PL organization acts as a single
interface between the client and multiple logistics service
providers; 3) All aspects (ideally) of the client’s supply
chain are managed by the 4PL organization; and, 4) It is
possible for a major third-party logistics provider to form a
4PL organization within its existing structure (Strategic
Supply Chain Alignment; John Gattorna).
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.
An approach to rate making whereby the ante is based only
upon the shipment weight and distance; widely used in TOFC
The carrier’s invoice for transportation charges
applicable to a freight shipment.
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
An organization which provides logistics services as an