F
FAS: See Final Assembly Schedule
Fabricator: A manufacturer that turns the product of a raw materials
supplier into a larger variety of products. A fabricator may turn steel rods
into nuts, bolts, and twist drills, or may turn paper into bags and boxes.
Failure Modes Effects Analysis (FMEA): A pro-active method of predicting faults and failures so
that preventive action can be taken.
Fair
Return: A profit level that enables a
carrier to realize a rate of return on investment or property value that the
regulatory agencies deem acceptable for that level of risk.
Fair
Value: The value of the carrier's
property; the calculation basis has included original cost minus depreciation,
replacement cost, and market value.
Federal Aviation Administration: The federal agency that administers federal safety
regulations governing air transportation.
Federal Maritime Commission: Regulatory agency responsible for rates and practices of
ocean carriers shipping to and from the United States.
Field Finished Goods:
Inventory which is kept at locations outside the four walls of the
manufacturing plant (i.e., distribution center or warehouse).
Field Service Parts:
Parts inventory kept at locations outside the four walls of the manufacturing
plant (i.e., distribution center or warehouse.
Field
Warehouse: A warehouse that stores goods on
the goods' owner's property while the goods are under a bona fide public
warehouse manager's custody. The owner uses the public warehouse receipts as
collateral for a loan.
Fill Rate: The percentage of order items that the picking operation
actually found.
Fill Rates by Order: Whether
orders are received and released consistently, or released from a blanket
purchase order, this metric measures the percentage of ship-from-stock orders
shipped within 24 hours of order "release." Make-to-stock schedules
attempt to time the availability of finished goods to match forecasted customer
orders or releases. Orders that were not shipped within 24 hours due to
consolidation but were available for shipment within 24 hours are reported
separately. In calculating elapsed time for order fill rates, the interval
begins at ship release and ends when material is consigned for shipment.
Calculation: [Number of orders
filled from stock shipped within 24 hours or order release]/[Total number of
stock orders]
The same concept of fill rates can
be applied to order lines and individual products to provide statistics on
percentage of lines shipped completely and percentage of products shipped
completely.
Final
Assembly: The highest level assembled
product, as it is shipped to customers. This terminology is typically used when
products consist of many possible features and options that may only be
combined when an actual order is received. Also see: End Item, Assemble to Order
Final Assembly Schedule (FAS): A schedule of end items to finish the product for specific
customers' orders in a make-to-order or assemble-to-order environment. It's
also referred to as the finishing schedule because it may involve operations
other than just the final assembly; also, it may not involve assembly, but
simply final mixing, cutting, packaging, etc. The FAS is prepared after receipt
of a customer order as constrained by the availability of material and
capacity, and it schedules the operations required to complete the product from
the level where it is stocked (or master scheduled) to the end-item level.
Finance
Lease: An equipment-leasing arrangement
that provides the lessee with a means of financing for the leased equipment; a
common method for leasing motor carrier trailers.
Financial Responsibility:
Motor carriers must have bodily injury and property damage (not cargo)
insurance of not less than $500,000 per incident per vehicle; higher financial
responsibility limits apply for motor carriers transporting oil or hazardous
materials.
Finished Goods Inventory (FG or FGI): Products completely manufactured, packaged, stored, and
ready for distribution. Also see: End Item
FIPS: Federal Information Processing Standards.
Firewall: A computer term for a method of protecting the files and
programs on one network from users on another network. A firewall blocks
unwanted access to a protected network while giving the protected network
access to networks outside of the firewall. a company will typically install a
firewall to give users access to the Internet while protecting their internal
information.
Firm
Planned Order: In a DRP or MRP system, a planned
order whose status has been updated to a fixed order.
First In First Out (FIFO):
In inventory control and financial accounting, this refers to the practice of
using stock from inventory on the basis of what was received first and is
consumed first. Antonym: Last In First Out.
First Mover Advantage: Market innovator, putting the company in the leadership
position.
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 Order Quantity: A
lot-sizing technique in MRP or inventory management that will always cause
planned or actual orders to be generated for a pre-determined fixed quantity,
or multiples thereof, if net requirements for the period exceed the fixed order
quantity.
Fixed
Overhead: Traditionally, all manufacturing
costs, other than direct labor and direct materials, that continue even if
products are not produced. Although fixed overhead is necessary to produce the
product, it cannot be directly traced to the final product. Also see:
Indirect Cost
Fixed Quantity Inventory Model: A setup wherein a company orders the same (fixed) quantity
each time it places an order for an item.
Flatbed: A flatbed, also called a haul brite, is a type of trailer
on a truck that consists of a floor and no enclosure.
Flexible Specialization:
A strategy based on multi-use equipment, skilled workers, innovative senior
management to accommodate the continuous change that occurs in the marketplace.
Flight
Number: An identifier associated with the
air equipment (plane). Typically a combination of two letters, indicating the
airline, and three or four digits indicating the number of the voyage.
Floor-Ready Merchandise (FRM): Goods shipped by suppliers to retailers with all necessary
tags, prices, security devices, etc. already attached so goods can be cross
docked rapidly through retail DCs, or received directly at stores.
Flow
Rack: A storage method where product is
presented to picking operations at one end of a rack and replenished from the
opposite end.
Flow-Through Distribution:
A process in a distribution center in which products from multiple locations
are brought in to the D.C. and are re-sorted by delivery destination and
shipped in the same day. Also known as a "cross-dock" process in the
transportation business. See Cross Docking.
FOB: A term of sale defining who is to incur transportation
charges for the shipment, who is to control the shipment movement, or where
title to the goods passes to the buyer; originally meant "free on board
ship." See Free on Board.
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.
Forecast: An estimate of future demand. A forecast can be constructed
using quantitative methods, qualitative methods, or a combination of methods,
and 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.
Forecasting: Predictions of how much of a product will be purchased by
customers. Relies upon both quantitative and qualitative methods. Also see: Forecast.
Foreign Trade Zone (FTZ):
An area or zone set aside at or near a port or airport under the control of the
US Customs Service, for holding goods duty-free pending Customs clearance.
Forklift
Truck: A machine-powered device used to
raise and lower freight and to move freight to different warehouse locations.
Four
P's: A set of marketing tools to direct
the business offering to the customer. The four P's are product, price, place,
and promotion.
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; (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 Along Side (FAS):
The seller agrees to deliver the goods to the dock alongside the overseas
vessel that is to carry the shipment. The seller pays the cost of getting the
shipment to the dock; the buyer contracts the carrier, obtains documentation,
and assumes all responsibility from that point forward.
Free Alongside Ship: A
term of sale indicating that 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.
Free
Time: The period of time allowed for the
removal or accumulation of cargo before charges become applicable.
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
Carriers: Companies that haul freight, also
called "for-hire" carriers. Methods of transportation include
trucking, railroads, airlines, and sea borne shipping.
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.
Freight
Quotation: A quotation from a carrier or
forwarder covering the cost of transport between two specified locations.
Fronthaul: The first leg of the truck trip that involves hauling a
load or several loads to targeted destinations.
Fulfillment: The act of fulfilling a customer order. Fulfillment
includes order management, picking, packaging, and shipping.
Full-Service Leasing: An
equipment-leasing arrangement that includes a variety of services to support
the leased equipment; a common method for leasing motor carrier tractors.
Full-time Connection: A
communication link between two (or more) entities which is normally maintained
continuously.
Full Truckload (FTL):
Same as Full Containerload, but in reference to motor carriage instead of
containers.
Fully Allocated Cost:
The variable cost associated with a particular output unit plus a common cost
allocation.
Functional Acknowledgement (FA): A specific EDI Transaction Set (997) sent by the recipient
of an EDI message to confirm the receipt of data but with no indication as to
the recipient application's response to the message. The FA will confirm that
the message contained the correct number of lines, etc., via control summaries,
but does not report on the validity of the data.
Functional
Group: Part of the hierarchical structure
of EDI transmissions, a functional group contains one or more related
transaction sets preceded by a functional group header and followed by a
functional group trailer.
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