Glossary

The federal agency responsible for regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers, and consumers.

An agency that provides financial and technical assistance to local public transit systems, including safety and technology research. https://www.transit.dot.gov/

Acronym for Forty-foot Equivalent Unit. Forty feet is the length of a standard size intermodal container used for ocean shipments.

Inventory that is kept at locations outside of the manufacturing plant.

Parts that are kept at locations outside of the manufacturing plant.

See After-Sale Service.

Public warehouse on the property of the goods’ owner but under the custody of a bona fide public warehouse manager. Typically used for storing perishable goods.

See First In First Out (FIFO).

The percentage of order items found by the picking operation. Result indicates how well the inventory management system is keeping track of stock levels.

Measures the percentage of orders that are shipped within 24 hours of being released. Helps businesses compare make-to-stock schedules with customer demand.

The highest level of an assembled product that is shipped to customers. Typically used when products consist of many possible features and options.

A schedule of end items to finish the product for specific purchasers' orders in a make or assemble-to-order environment. Sometimes called a finishing schedule.

The last stopping point for a particular shipment. Used most often in relation to freight shipments.

Provide service for the final leg of a shipment. Usually applied to deliveries made to homes and sometimes includes set-up type services for the product delivered.

In logistics, an equipment-leasing arrangement that provides the lessee with the financing for leased equipment such as trailers and tractors.

For U.S. motor carriers, required insurance to cover bodily injury and property damage (not cargo). Minimum is $500,000 per incident but higher for some cargo.

Products that have completed the manufacturing process, been packaged, stored, and are ready for distribution.

See Federal Information Processing Standards (FIPS).

Computer security function designed to protect the files and programs on one network from the unauthorized access by users on another network.

A manufacturing order that reserves capacity and allocates material but, unlike a work order, has not been authorized for release to the production floor.

An inventory and accounting method in which assets produced or acquired first are sold, used, or disposed of first.

Describes a service or product that gains a competitive advantage by being the first to market with a product or service and establishes a strong market share.

Costs that do not change with an increase or decrease in the number of goods or services produced or sold.

Part of an inventory control system with minimum and maximum levels and that specifies a set reorder point when a minimum inventory level is reached.

Part of Fixed Costs. In manufacturing, costs (except direct labor and direct materials) that continue even if products are not produced.