Fixed Order Quantity Materials Management Vocabulary

 

 

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Field warehouse
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
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 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.
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 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.
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.
For-hire carrier
A carrier that provides transportation service to the public on a fee basis.
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
Forecast Cycle
Cycle time between forecast regenerations that reflect true changes in marketplace demand for shippable end products.
Forklift truck
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.
Freight-all-kinds (FAK)
An approach to rate making whereby the ante is based only upon the shipment weight and distance; widely used in TOFC service.
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.
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.

 

 Get terms alphabeticallyA B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

 

 

 

 

 

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