| A | B |
|---|
| just-in-time | controlling the material flow so that goods arrive just when needed and not before |
| order cycle | the period between a customer’s request for goods and the receipt of goods by the customer |
| inventory | all the goods held by an organization for future use or sale |
| inventory accuracy | the degree to which a firm’s listing of goods it has matches the goods it actually has |
| logistics | the function that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods and services |
| infrastructure | the roads, railroad tracks, airports, warehouses, and other facilities that support logistics activities |
| independent distributor | a firm that markets, stores, handles, and delivers goods for one or more manufacturers, but is not owned by the manufacturers |
| inventory management | planning and controlling the quantity and location of goods |
| marginal cost | the $ to produce one additional unit of output |
| drop ship | the delivery of goods directly from a manufacturer to a customer without moving through the reseller’s facilities |
| LTL carrier | trucking companies that put together several smaller shipments into one larger one and transport shipment through a network of terminals |
| inventory turns | measures how many times a company’s inventory has been sold during a period; the larger the number the better |
| direct store door delivery | a seller moves goods directly to the buyer’s retail stores, rather than distributing the goods through the company’s own distribution centers |
| materials handling | lifting, moving, and positioning goods |
| freight broker | a person or organization that arranges for the transportation of cargo, but does not transport it |
| inventory carrying costs | the costs of holding goods which includes opportunity costs, risk, insurance, storage, taxes, and other costs that vary with the quantity held |
| inventory counts | determining the quantity of goods held in stock |
| order processing | taking the customer's request for goods, doing the paper work, and satisfying the request |
