Fabricator:
A
manufacturer that turns the product of a raw materials supplier into a larger
variety of products. For example, a fabricator may turn steel rods into nuts,
bolts, and twist drills, or may turn paper into bags and boxes.
Facilities:
The
physical plant, distribution centre's, service centres, and related equipment.
Failure Modes Effects Analysis (FMEA): A proactive method of predicting faults
and failures so that preventive action can be taken
Failure
Modes Effects Analysis (FMEA): A
pro-active method of predicting faults and failures so that preventive action
can be taken.
Fair-share
Quantity Logic: In
inventory management, the process of equitably allocating available stock
among field distribution centres. Fair-share quantity logic is normally used
when stock available from a central inventory location is less than the cumulative
requirements of the field stocking locations. The use of fair-share quantity
logic involves procedures that "push" stock out to the field, instead
of allowing the field to "pull"in what is needed. The objective
is to maximize customer service from the limited available inventory.
FAS
Free Alongside: price includes delivery of goods
alongside ship at port of export. See also FOB. Also "Flexible Accounting
System".
FB:
Freight Bill
FCI:
Freight Carriage & Insurance: price includes transport
and insurance.
FCL:
Full Container Load
FCP:
Freight Carriage Paid
FCR:
Forwarders'
Certificate of Receipt: negotiable banking document. Also "Forwarders Cargo
Receipt".
Feature:
A
distinctive characteristic of a good or service. The characteristic is provided
by an option, accessory, or attachment. For example, in ordering a new car,
the customer must specify an engine type and size (option), but need not necessarily
select an air conditioner (attachment).
FEU:
Forty-Foot Equivalent Unit: a standard measure for containers
(see also TEU).
FFS:
Finite Forward Scheduling: manufacturers' scheduling
approach which assumes there is a finite production capacity (c.f. the "infinite"
capacity assumptions of MRP II planning).
FG:
See
Finished Goods Inventory
FGI:
See
Finished Goods Inventory
FGP:
Factory Gate Pricing: price excludes delivery. By taking
over responsibility for primary transport, retailers aim to reduce empty running.
Fiber
Distributed Data Interface (FDDI):
LAN technology that runs at 100 million bits/sec, a much higher data
rate than standard Ethernet or Token Ring. FDDI networks originally required
fiber optic cable, but today can run on UTP. FIFO: First
In, First Out. The most common method of inventory accounting.
FIFO:
First
In First Out: warehousing term, meaning that the oldest inventory (first in)
is the first to be used (first out). See also LIFO.
FILE:
Any
group or collection of related information stored in memory.
To add data to a file or to read data from a file, the program must
access the file by its file name.
File
Transfer Protocol (FTP): The
Internet service that transfers files from one computer to another, over standard
phone lines.
Fill
Rate: The
percentage of order items that the picking operation actually fills within
a given period of time.
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 of order
release] / [Total number of stock orders] Note: 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.
Film
Master:
Film negative or positive, or contact print of a bar code used to make
printing plates (or in original artwork).
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 is 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.
Final
Invoice: A
final invoice is one which has no further entry needed. All
the information concerning the invoice and the receiving status of all merchandise
related to the invoice is complete and final.
Finished
Goods Inventory (FG or FGI): Products
completely manufactured, packaged, stored, and ready for distribution. Also
see: End Item
Finite
Scheduling: A
scheduling methodology where work is loaded into work centres such that no
work centre capacity requirement exceeds the capacity available for that work
centre. See: drum-buffer-rope, finite forward scheduling.
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: A
planned order which has been committed to production. Also see:
Planned Order
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
First
Mover Advantage: Market
innovator, putting the company in the leadership position.
First
Pass Read Rate:
A bar code and scanner quality measure expressed as a percentage of
successful scans per total attempts.
First
Pass Yield: The
ratio of usable, specification conforming output from a process to its input,
achieved without rework or reprocessing.
Fixed
Assets:
Tangible durable assets used continually by organizations, such as
buildings and major equipment, that are not easily varied according to need,
unlike hourly labor or 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 Order System: See
Fixed Reorder Cycle Inventory Model
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
Order Quantity System: See
Fixed Reorder Cycle Inventory Model
Fixed
Overhead: Traditionally,
all manufacturing costs, other than direct labour 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
Reorder Cycle Inventory Model: A
form of independent demand management model in which an order is placed every
ìnî time units. The order quantity is variable and essentially replaces the
items consumed during the current time period. Let ìMî 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-Interval
Order System, Fixed-Order Quantity System, Order Level System, Periodic Review
System, Time-Based Order System. Also see: Fixed Reorder
Quantity Inventory Model, Hybrid Inventory System, Independent Demand Item
Management Models, Optional Replenishment Model
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. Synonym: Fixed Order
Quantity System, Lot Size System, Order Point-Order Quantity System, Quantity
Based Order System. Also see: Fixed Reorder Cycle Inventory
Model, Hybrid Inventory System, Independent Demand Item Management Models,
Optional Replenishment Model, Order Point ‚ Order Management System
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
Flexibility:
The ability of a firm's processes and systems to respond quickly to
changes in the business environment. It includes the capacity to accommodate
shifts in consumer demand, in competitors' strategies, in rate of growth,
and in suppliers' deals and shipment problems.
Float:
The
time required for documents, payments, etc. to get from one trading partner
to another.
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.
FLT
: Fork Lift Truck
FMCG:
Fast
Moving Consumer Goods: i.e. food, drink, pharmaceuticals,
household products, etc.
FOB:
Free on Board, or Freight on Board. The FOB Point
is the point at which the responsibility for the merchandise changes from
the Vendor to the Purchaser.
FOB:
Free
On Board: point during transportation where title, transport
costs, risk, etc. transfer from seller to another party (e.g. FOB Truck, FOB
Vessel, FOB Warehouse). See also FAS, FOR, FOT. Also "Freight 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.
FOC:
Free of Charge
Follow
up:
The
routine tracking of a purchase order to assure that the supplier will be able
to
FOR:
Free On Rail: point during transportation where title, transport costs,
risk, etc. transfer from seller to another party (see also FOB, FOT).
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. Also see: Box-
Jenkins Model, Exponential Smoothing Forecast, Extrinsic Forecasting Method,
Intrinsic Forecasting Method, Qualitative Forecasting Method, Quantitative
Forecasting Method
Forecast
Accuracy: Measures
how accurate your forecast is as a percent of actual units or dollars shipped,
calculated as 1 minus the absolute value of the difference between forecasted
demand and actual demand, as a percentage of actual demand. Calculation:
[1-(|Sum of Variances|/Sum of Actual)]
Forecast
Cycle: Cycle
time between forecast regenerations that reflect true changes in marketplace
demand for shippable end products.
Forecast
Error:
The difference between actual demand and forecasted demand.
Forecasting:
Predictions
of how much of a product will be purchased by customers. Relies upon both
quantitative and qualitative methods. Also see: Forecast
Forward
Buy:
Process by which a retailer buys more product than the chain could
normally sell within the next buying period, generally at a lower price.
FOT:
Free On Truck: point during transportation where title, transport costs,
risk, etc. transfer from seller to another party (see also FOB, FOR).
Four
Wall Inventory: The
stock which is contained within a single facility or building.
Fourth-generation
language (4GL):
A series of high-level nonprocedural computer languages that use menus,
drag-and-drop, point-and-click, and English-like wording to design and develop
applications.
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). Also see: Lead Logistics
Provider
fpm:
feet
per minute
Free
Domicile:
Shipper
pays all taxes and duty.
Free
on Board (FOB): Contractual
terms between a buyer and a seller, that define where title transfer takes
place.
Freight
Bill:
Document that accompanies a load of freight. Tells
how many cases, pallets, or bundles or merchandise, identifies the purchase
orders numbers shipped against, and the amount of freight charges.
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.
FRM:
See
Floor Ready Merchandise
FRS:
Financial Record System.
FTA:
Freight Transport Association: UK trade association.
Also "Free Trade Agreement".
FTE:
See
Full Time Equivalents
FTL:
Full Truck Load or Full Trailer Load. Also former name of TBG's IT
department.
FTP:
See
File Transfer Protocol
FTZ:
Foreign
Trade Zone
Future
order: An
order entered for shipment at some future date. This may be related to new
products which are not currently available for shipment, or scheduling of
future needs by the customer.
FZ:
Free
Zone: a duty free zone.
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Copyright 2005. Media Services, Calgary Board of Education. All rights reserved