Glossary
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I
In Process Goods.
Partially completed final products that are still in the production process either as an accumulation of partially completed work or the queue of material awaiting further processing.
Inactive Inventory.
Stock of items that have not been used for a defined period.
Inco Terms.
These are internationally accepted commercial terms defining the respective roles of the buyer and seller in the arrangement of transportation and other responsibilities and clarify when the ownership of the merchandise takes place. They are used in conjunction with a sales agreement or other method of transacting the sale.
EXW - Ex Works -- Title and risk pass to buyer including payment of all transportation and insurance cost from the seller's door. Used for any mode of transportation.
FCA - Free Carrier -- Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier.Seller is obligated to load the goods on the Buyer's collecting vehicle; it is the Buyer's obligation to recieve the Seller's arriving vehicle unloaded.
FAS - Free Alongside Ship --Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller.
FOB - Free On Board and risk pass to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. Used for sea or inland waterway transportation.
CFR - Cost and Freight -- Title, risk and insurance cost pass to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation.
CIF - Cost, Insurance and Freight -- Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.
CPT - Carriage Paid To -- Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination. Used for any mode of transportation.
CIP - Carriage and Insurance Paid To --Title and risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation.
DAF - Delivered at Frontier -- Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation.
DES - Delivered Ex Ship -- Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation.
DEQ - Delivered Ex Quay (Duty Paid) -- Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation.
DDU - Delivered Duty Unpaid -- Title, risk and responsibility of import clearance pass to buyer when seller delivers goods to named destination point. Used for any mode of transportation. Buyer is obligated for import clearance. DDU - Delivered Duty Unpaid -- Seller fulfills his obligation when goods have been made available at the named place in the country of importation
DDP - Delivered Duty Paid -- Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation.
Note: EXW, CPT, CIP, DAF, DDU and DDP are commonly used for any mode of transportation.
FAS, FOB, CFR, CIF, DES, and DEQ are used for sea and inland waterway.
Independent Demand.
A classification used in inventory control systems where the demand for any one item has no relationship with the demand for any other item and variations in demand occur because of random influences from the market place.
Intermediate Product.
A product for which independent demand can exist and for which there is also demand as part of another higher level product e.g.: a single can and a multi-can pack or a sub-assembly spare and the major assembly of which it forms part.
Intermediate Stock.
See Decoupling Stock
Inventory.
A term used to describe:
all the goods and materials held by an organisation for future sale or use
a list of items held in stock
Inventory Control.
Consists of all the activities and procedures used to control and maintain the right amount of each item in stock or to provide the required level of service at minimum cost.
Inventory Modeling.
The evaluation of alternative inventory design characteristics or inventory parameters using analytical or simulation processes to assist management decisions.
Inventory Policy.
A statement of a company’s goals and approach to inventory management.
Inventory Process.
Any business process that involves inventory. Includes the receiving of parts, putting them away, and their storage, withdrawal, issue, and movement through work-in process, while simultaneously tracking their movement and maintaining records of those events and their effects.
Inventory Records.
Records that reflect how much and what kind of inventories a company has on hand, committed (allocated) to work in process, and on order.
Inventory Shrinkage.
Losses resulting from scrap, deterioration, pilferage, etc
Inventory Usage.
The value of the number of units, or quantity, of an inventory item (stock usage) consumed over a period of time.
Inventory Value. The value of inventory at either cost or market value. The value of the inventory is usually computed on a First In First Out (FIFO) or Last In First Out (LIFO) or average cost basis.
Issue List.
A document that states all the parts to be issued.
Issues based supply chain development.
This is an approach that is used to first make an assessment of the problems, issues and root causes in a supply chain and then uses the root causes to understand the strategic gaps in the supply chain.
Issue Tickets.
An authorisation to withdraw allocated stock items from the stockroom. When presented to the stockroom, they can be exchanged for the parts designated.
Issuing Documents.
The physical documents that communicate specifically how much of what needs to be issued to where. Issue lists, issue tickets, and issue decks are all forms of issuing documents.
Item.
See Stock Keeping Unit (SKU)
Item Number.
See Part Number.
Acronyms | 1-10 | A | 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