The Language of Logistics

Edward H. Frazelle, Ph.D.

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majority of sales) (aka “Pareto’s Law”) $OH dollars on-hand $OO dollars on order 12MU twelve-month usage 2 of 5 code ra ebparre cs oe nd teesdy bmybao bl oi ng ya rrye pn ruems ee nr at il ncgo mn upmr ies reidc aolf df iavtea bwi ti st h, t ewaoc ho fdoi gniet kcoinndv,enctoionnvaelnlytizoenraolelys ones; and three of the other kind,

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RightChain™

18 | The Language of Logistics apnrodgirnatmerspreted by organizations into their own unique 6s and 7s

Edward H. Frazelle, Ph.D.

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A Terms A-Frame ap ur ot odmu catt endu, mh ibgehr- shpoeuesde, dp iienc eo npei c ko irn gm os yr es t, esmi d ew- bi tyh- sei da ceh vue nr ti iqcua el , bd ei sl pt ec on ns ivnegy omra(gaakzai n“easu two hmi caht efdo rdmi s paenn“sAi n- Fg r” )a m e ” o v e r a t a k e a w a y

AAPA American Association of Port Authorities AAR (1) against all risks (2) Association of American Railroads abandonment (d1i s) c opnrtoi nc eueedsi ne rgv i ci ne i nw ha li lc ho r ap a cr at rorfi eirt s sr eoeukt es aanudt/hoorr ilzi antei,o onr tt oo relinquish ownership/control of its cargo or vessel (2) shipper or

RightChain™

20 | The Language of Logistics sc ao mn sei g( n3 e) ea br edliicnaqt iuni sg ht ii nt l ge dt oa mp aargt el yd df er se ti rgohyt eodr prreof up se irnt gy tdoe il ni vseurrye rosf ABC (o1b)jePctasre(t2o)’sacLtaivwityclbaassseifdiccaotisotningof supply chain activities and/or ABC classification (i n1v) eanpt oprl iyc ai nt i odne cor fe aPsai nr egt oo’rsd eLra wo f (a2n)n us tarladt iof ilcl aart i ov on l uomf ea;r tAi csl et rsa ti na iattet me nst ihoanv; eBt hs ter ha it ga hi et es mt asnrneuc ae li vdeo ll el as rs vaot tl ue nmt ei oann, da nr de csetirvaet at hCe i mt e oms st have the lowest dollar volume and are controlled routinely ABC cycle counting s d in t e r v t a e e t n r i m f t i o e i r d n y e c b o c a o u s u n e n t d i t n in u g g p a o n fr n d e r q v e u a c e l o u n n e c c y , i l c i w a r t i h t i e o ic r n a e p l i " t r A y o , " g r a p a n r m o d d in u a c c w t t s i h v i a i c t r h y e i t l c e e o m v u e s n l a te d o e m"Co"rperfordeuqcutesntly than "B" products which are counted more than ABI automated broker interface absolute liability ef oxrt raelml lei a lbi ai lbi tiyl i tayn dc oins dni ot ito pn r uo nt edcet re dwbhyi cnhoar mc aarl rei xe er mi sprt ei osnpso nf osui bnlde in a bill of lading or common law liability absorption costing appopr triooancohf tf oi x ei ndvceonsttos rayr ev aalsusai gt inoend itno ewahcihc hu nvi at r i a b l e c o s t s a n d a acceleration resistance inertial reaction resisting and opposing increasing vehicle speed acceptance (c 1u )l m ai ncaktni no gw l ae d cgaerdr i erre cceoi np tt r abc yt ( a2 ) cao npsri go nmeies e otfo ap a ys h, iupsmueanl l ty, r t

Edward H. Frazelle, Ph.D. ef ovlildoewnecde db ybtyh ei ndsact rei, bpilnagc eapcar yoas sb l et haen df aaccec eopft oar ' sbsi lilg n"aatcucreep t e d , " accepting bank the bank on which drafts are drawn and that has agreed to accept a draft in a letter of credit accessorial charges (c 1o )n cnhe ac rt igoens wf o irt hs ucpapr lgeomt er annt as rpyo sr et ar tvi iocne ss ua nc hd apsr ilvoi al edgi ne sg ,pur no vl oi da de di nign, nd oe mt tuy rpri ac ag lel ,y di ne tcel undt ieodn i, ns tt oh reafgr ee ,i gphi tc kc h- uapr gaenadn dd eul si vuearlyl y (i2n)v oc hi caerdg ae ss a flat fee accessorial services si ne cr lvui cdei ns gp eprifcokrumpe, dd ienl i va edrdyi t, i os ing nt oa tnuor remsaelr tvriac ne ,s paonrdt a st ti oo nr asgeer v(iac ke as “ancillary services”) accident ua nn dp /l aonr neeqdu iopcmc uernrte, ni nc ej u wr yhoi crhi l ml n ae ys s rteos uplet r isno ndsa, ma na dg e/ otro apdrvoepr es re tl yy affects an activity or function accordion conveyor rinollleenrgctohnveyor with a flexible latticed frame permitting variation | 21

RightChain™

22 | The Language of Logistics account number (A/N) ne nu smubr ienr gi sascuceudr abtye ai ncvaor irci ei nr gt op irdoec ne dt i uf yr eass ahni pdpue nr iannt de r/rourpctoends ci ga nr ge oe flow accounting life tainmaecpcoeurinotdanotver which an asset’s initial cost will be allocated by accounts payable (AP) pacacidount (i.e., invoices, bills, claims, etc.) that is due and must be accrual g r (1 e o c ) o e d p iv s a e y a d a n b d ( l 3 e s ) e e e r x v x p c ic e lu e n s d d e r it s e u c c r e o e iv m n e m o d t ) i t y ( m 2 et e ) n r p t e a s v i d e fo n , r ( u i g e .e o s . , o r a d e c c s c e a o i n v u a d n b t s l s e e r p b v a u i y c t a e n s b o l t e t o y f b o e e r t received in the future accumulation area collection and staging point for orders prior to shipment accumulation conveyor ci nocnl vuedyi no gr s z tehr aot p rsetsospu,r eh, oml di nai mn du me vpe nr et susaul lrye raenl eda sneo np-rcoodnut ac ct st accumulation conveyors accuracy (s 1p)e cqi fui caal ittiyo,n s(tea.tge. , pourt adweagyr eaec couf r ac coyn, f os hr mi papni nc ge at coc uar asct ya n, fdoarredc aosrt ae nc cdu er af fceyc,t ionrvaetn at opr ryoagcrcaumr amc ey d) (l 2o )c aatbi oi lni t yi no sf paarcoebcoht atroa pc toesriitzi oe dn ibt ys athneddtihfefeorreingcineablelytwpreoegnrtahmempoedsitpioosnittihoenrobot tool-point achieves ACE Automated Commercial Environment

Edward H. Frazelle, Ph.D.

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acquiescence as hc ci pepp et arn’ scaeg eanntdw/ oitrhsoiugtnpi nrgo t eosf t ae sbs ielnl toi af l llya daicnt igngb ya saa ssihl ei pnpt efro romr of consent active inventory it nh ve epnrtioorryt wo ne-l hv ae nmdofnotrhps r(oads uocpt ps ot hs eadt ht oa v“ de ebaede ni nrveeqnut oe sr yt e” d) w i t h i n active tag Ri t Ft IoDbtrroaandscpaosnt da esri genqaul i(papseodpwp oi tshe di t st oo w n p o w e r s o u r c e e n a b l i n g “passive tag”)

activity balancing ewqourakl l y zdoi ns tersi b u (t ien. gg. v ool ur dmeer ( s )poi cf kwi nogr k az oc rnoesss, o ps et or ar at og res a an ids /l eosr, transportation routes) actuator mp noetuomr aot irc etnr aenr gs yd ui nc et or ptohwa et r cf oorn vmeor tt iso neol ercat rcitci aoln, h y d r a u l i c , o r AD annual demand

RightChain™

24 | The Language of Logistics ADA o( 1f )Dheifgehn-sl ee v(e2l)pAr mo gerraimc amn ’isnwg liat hn gDui as agbe iul ist ei eds bAyctth e U . S . D e p a r t m e n t adaptive control cc oo nn tt irno ul omu es lt yh oadn du saeudt ot mo aatci hc ai el lvye andej ua sr t- ionpgt i cmo un mt r opl epr af or ar mm ae nt ec res bi ny response to measured process variables adaptive robot rwoibt ho t o et hqeuri pmp ae cdh iwn iet sh, aonnde coormmmourne i ceaxtti enrgn wa l i tshe no st ho resr , cionmt epr fuatceer ds benyvirdoentmecetnintg, measuring, and analyzing data about its ADD average daily demand address aa us np ieqcui fei cn us tmo er ar igcea lsol or ta, l fpahcai nngu, moer r il coac la itdi oenn t ii nf i ear uwsaerde thoo du es es i g( n2 a) t ae si tps e cliof iacdd ersetpi nraetsieonnt el odc aet ii ot hne fro raas n aa u tcoommabtienda tgi uo ni d e od f v emh ai cgl ne eot rs oemn tbheedfdleodorin the floor or a combination of light and dark markings

advanced notice of arrival (ANOA) afodrveaignnceponrottice required for a vessel entering a country from a

Edward H. Frazelle, Ph.D.

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advanced planning and scheduling (APS) se ys ps teecmi a lel ym ptl ho oy seed i nw ci tohm prleesxt rpi cl at invnei n gh aarndd sccohne sdtur al i inngt sa c tai nv idt /i eosr, requiring multi-phase scheduling advising bank binasntkrutcotiownhsictoh naontiifsysauninegxpboarntkerforwards a letter of credit with advisory option er exqpuoer st et ra’ s cpurset or omg’ast iovfef i cpi ar ilotro tpor eoxvpi doer tai nngoap ipnri oond uocnt wt ohfeotrhme ra lol yr np ou tr pa on si et e, mo r wwi lhl enteheedr aolri cneonts et h, we hi teetmh e irst hs ue bi tj ee cmt itsomoitlhi tearr yc uosrtdo umasl compliance requirements AEI automatic equipment identification Aframax odielatdanwkeeirghwtittohnas capacity ranging between 75,000 and 115,000 AGV automated guided vehicle

RightChain™

The Language of Logistics

26 |

AGVS automated guided vehicle system AI (1) available inventory (2) artificial intelligence AIL average inventory level air taxi as mi r aclal r ar ii er cr sr atfht a(t l et rsas n tshpaonr t 3p0e r ss eoantss, porro pae rmt ya, xai mn du/mo r omf api la yulsoi na dg capacity of 7,500 pounds)

air waybill (AWB) oa f fsi hc ii aplpaeirr tarnadn sapi or r tcaatriroi ne rd of ocru mt heen tc aa rc rt ii na gg ea so fa gc oo no tdrsa cctobnet tawi nei ne ng sahpipplpi cianbgl eitnrsatnr supctoirotnast i, ona chdaersgcer isp(tai okna “ aoifr btihlle” ) com m od i t y an d

Edward H. Frazelle, Ph.D.

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AIS automatic identification system aisle (a1n)d s/ po ar ceequusi pe dm teon ta c( c2o) ms mp aocde abt ee ttwh ee emn osvteomr aegnet coof mmpeanr, t mm ae nt et rsi ai nl , pwahsiscahg ae nt haauttpormoavtidedessat oc cr easgse taonsdt orreatgr ieev al m a c hin e op er a t es ( 3) aisle space percentage (ASP) percentage of floorspace in a facility devoted to aisles aisle transfer car bmeatcwheinene aoirslveeshicle for transferring a storage/retrieval machine AIV average inventory value algorithm sgeivqeunenpcreobolfeimnstructions with a finite number of steps that solve a ALI allocated inventory all in aolrli-ginincltuosdiveesttinoatatilopnrice to transport cargo door-to-door from allision roebfjeercetnce to an incident of a moving vessel striking a stationary allocated inventory "s up ne ct oi fui cc hcaubs lteo"m, reersse, rcvheadn innevl es ,n pt ourryp soes te sa, s oi dr ed ef or sr aa nn dd /doerd ibcua st iende ts os units (aka “allocation” or “stock allocation”)

RightChain™

28 | The Language of Logistics allowance (p1e)r c ewnot ar kg e moef a st iumr eembe yn t wthe ri cmh trheef e rneonrcmi nagl as t atni md aerdv atliumee oi rs idnecl raeyas s, er eds tatl il mo we itnog o vf oerr c iormr eeg fual tai rg ueel ,eamnedntti sm, emf oi nr opre rusnoanvaol indeaebdl es (2) minimum required clearance between two objects alphanumeric cphuanrcatcutaetrionsemtarckosmprised of letters, digits, and typically amended bill of lading borillstoaftluasding requiring updates that do not modify financial terms amortization (o1p)e rdaitsi torni bs uatsi oi nn doefp ri ne ictiiaatli oinn v( e2s)t rmeednutc t vi oi an opfear i do de bi ct bc yh apregrei so dtioc oa cr ciorrrde ignugl a tro p aa ypmr eena rt sr a(n3g)e pd l apnr ot gor ap ma y (o4f )f at i mf i nea np ceirai lo do bul isgeadt i ot no depreciate and pay for an asset on the "books" (aka “write off”) AMS automated manifest system A/N (1) appointment number (2) account number analog control hcoyndtrraoullisci,gonraplsnepurmocaetiscsed through analog means - electronic, android (1) robot resembling a human being (aka “droid”)

Edward H. Frazelle, Ph.D.

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angle of repose/slide adnetgel ermai nt edwbhyi cthhemnaattuerrieaol f tshlied emsa toenri alaanndi nt hclei nseudrf ascuertfyapcee a s

annual demand (AD) nb aucmkbwearr do fo vuenri ttsh er epqr ui oers yt eeda rf aonr da snt riitcet ml y adhuirsitnogr i caa ly ve aa lru el o o k i n g annual equivalent fai nsaenqcui aelnecfef e cot f wehqeunailn teenrde s- ot fi-syceoanr s ipdaeyr me de anst sa nhoat vhienrgp at yh me esnatmo er soerqeuqeunaclelyosfppaacyemd einnttsimwehich are not necessarily equal in amount ANOVA analysis of variance anthropomorphic robot r(aokbaot“jwoiinthteadl-larromtarroybjooitn”)ts and motions similar to a person's arm

RightChain™

30 | The Language of Logistics anti-backup mreevcehrasinnigcadlirseacfteitoyn device preventing a loaded conveyor from anticipation stock ipnrvoemn ot ot iroyn bs ,upi ll ta nutps hi nu taddovwannsc,ea no fd /s oe ar spol anna nl ef ldu cs at ul east icoanms pi na i gs na lse s , anti-collision gf reonme rma lutl et irpml e udseevdi c teos icnotveerrf emr i ne tghwo di tsh oofnpe raenvoetnhtei nr g r a d i o w a v e s anti-runaway sparfeevteyn td emv iactee rdi aelssi g nf reodmt o“ rhuanlnt i na gd eacwl ianyi n” gi nc otnhveeyeovre na nt do ft hauns electrical or mechanical failure AOP annual operating plan AP accounts payable APEC aprtoimceessainndg date set aside as required for a delivery to arrive for appointment number (A/N) aappuoniinqtumeenntumeric or alphanumeric reference to a specific Asia Pacific Economic Cooperation APO advanced planning and optimization appointment

Edward H. Frazelle, Ph.D.

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RightChain™ arrival notice ncaortrifiiecraotifoanshofipt’shear“rnivoatlify party” and “also notify party” by a artificial intelligence (AI) ai nbtiel irtpy r eotf nae wmcaocnhdi ni tei o onrs , sdyesctiedme wt oh a at ua tcot imo na tsi cmaul lsyt bpee rpceeri fvoer ma ne dd wu ni tdhe rmt ahien caopnpdliitci aotni os ,nasnidn pel xa pn ecrot nssyesqt eume nst, i ac lo amcpt iuotnesr avcicsoi or nd ,i nagnl dy fuzzy logic ASEAN Association of Southeast Asia Nations ASN advance shipment notification ASP (1) application service provider (2) aisle space percentage ASRS automated storage and retrieval system appraisement dcuestetormmisnoaftfiiocniaol f the dutiable value of imported merchandise by a apron conveyor cvoenrtviceaylohr awnditlhingatotfapcahcekdagpersoojercotibnjgectasrms, or shelves used for APS advanced planning and scheduling APU auxiliary power unit ARQ average replenishment quantity

The Language of Logistics

32 |

assemble-to-order (ATO) postponing assembly until an order is received assembly joining, connecting and mating unique parts assembly AGV ap uo tsoi tmi oant ,eadn dg ut ri adne sdp ovret hciac rl eb owd ii tehs , ef inxgt iunrees( ,s t) r atnos mhios lsdi o, nssu, pe tpco. ri tn, assembly operations (aka “automated mobile work platform “)

Edward H. Frazelle, Ph.D.

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assembly area area used for collecting and combining materials or orders assembly cycle time eolfatpassekds twimheenreaqssueirmebdlfionrg aahpurmodauncot r robot to accomplish a group assembly line balancing ds ui vc ihd itnhga t a tnhde aws os irgkn ei nf fgo rwt oarnkd ttoi mper oi ng r ee as cs ihv es t aa tsisoenmi bs l ye x sa tcat tl iyo no sr nearly equivalent asset tracking R e p n l F a a I c D b in l i t g n r g a t n ra s r p e c a k o l i n - n t d g im e r d e s e , v o i a n c u e o t s o r m i i n n a c t l h u e i d d gh in - lo v g a c b a lu a ti e r o a n c s o s d i e d e t e s s n , a t G i n f P d ic S / a o t u i r n o c n it o s n t a t h a n e i d r n e / e b o r y s r increasing asset utilization and security assignment tehnedtorrasninsfgear obfilrliogfhltasd, tinitgle and interest in order to assign goods by assortment mreitxaiolirngportfolio of products or SKUs typically associated with ATA (A1d)maicstsuiaolntTimeme poof raarirrievaAld(m2)isAsimonerican Trucking Association (3) ATA Carnet (f r1e)ei nt teemr npaotri ao rnya l i cmups toor mt so fd og oc uo md se nf ot rp eurpmti ot t i on ng ed uy teya-rf r (e2e )a ni ndi ttiaa xl s- "" AA Td mA "i s sai roen aTne mapcor or aniyrme / Toe fm pt hoer a rFyr eAn cdhm i sasnido n "E n(g3l )i s ht y pwi coar ldl ys up sr ee ds e nttoa t icoonv oe rr ussaema tp tl er as d; epfraoi rf se,ssshi oonwasl , eexqhui ibpi mt i oennst,; e tgco. o d s f o r

RightChain™

The Language of Logistics

34 |

ATC aisle transfer car ATD actual time of departure ATO assemble-to-order ATP available-to-promise attainable cubic feet tchoem pt outtaeld garso st hs ecpurboi cd uf cete to fafvaac ii ll ai tbyl ef o foot rp roi nc ct uapnadnnc ey t ipne ramfiascsiilbi tl ye clear height(s) authentication iodrepnrtoi tcye vs se rviifai cva ot iioc ne po rf ian tp, ef ri ns go enr, opbr ij ne ct ,t ,r leot ci na at i os cna, na ,sbs eatr, cdoodc eu ms ceannt, and/or RFID scan Automated Commercial Environment (ACE) Cmuasnt oi fme sst sa dn de sBc roirbdi enrg Pt hr oetceocnt itoenn st se rovf iac es'hs ieplme cetnr ot n i c r e c e p t a c l e f o r

Edward H. Frazelle, Ph.D.

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automated guided vehicle (AGV) l p ( o 1 o o ) w p e s a r o n e r d c a b o u y m t o e p n le l o e c x m t r n o ic e u t m s w , o o t d r o k r r i s s v , ( e f 2 r o ) l l e l d s o r s w i , v i e n s r g t l e e p e s r r s e a i d b n e l d e f u i , n s e t w r d i h a p e l a e t t l r h e u s d c o k f vseihmi cpl lee,

automated identification system (AIS) svyess tseeml s upsreodv ibdyi nogc ea amn evaens ss efl os rt os hi di pesn ttiof y eal ne cdt rl oo nc ai ct ae l loyt heexrc hoac enagne ship data including identification, position, course, and speed automated manifest system (AMS) smyus tl teim- m oadvaal i l ac abrl eg o t oi n vceanrtroi reyr s ,c opnot rr ot l aauntdh orrei tl ieeass, e annodt i f if cr ae ti gi ohnt fi no r- bwoanrdd es ryss ti ne mt e sr ,f aacl li onwg di ni gr efcatsl tyewr ii tdhe cnut isf ti oc amt isocna ar gnod sreelleecatsi ve i ot yf al onwd risk shipments

RightChain™

36 | The Language of Logistics automated sortation eplaecckt ar og ne si correoc ot hgenri tci oo nn taani nde hr sa nbdy l si ni zgeaourt oc mo daet ieonnaobfl icnagr tt ohne sm, ttoot ebse, sorted into groups without human intervention

automated storage/retrieval system (ASRS) c a c o o n m m d p p m u ri t o s e e v r d i n c o o g f n a h tr o t o a r l i l l z l e o m d n , a t o s a p t l l e m y r a o w t u o i n r t t h - e f i r d n e e o n n s a t r r o a r r o i a l w s g e i n r a a t n h c d k e e r f d l e o t o r a r i i e s a v l n e a s d l s c a y e n s i t d li e n m g a motorized shuttle table moving vertically up and down the mast

Edward H. Frazelle, Ph.D.

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automated visual inspection ud seet e cot fi n ga f cl aawmse, rcao, mi mp ial igneg sptraotci setsi sc os ,r , a nadn di n smp ieccrtoi npgr odc eosc suomr e nf ot rs and containers

automated warehousing as two raargeeh, oauns de i rnewt rhi ei cvha la ascutbi vs ittai ne st i aalrpea pr teor ff ot rhme er edc ewi vi ti hn og u, pt uht ua wmaayn, operators automatic data capture (ADC) tceocmhmnoulnogiciaetsions,uch as bar coding, radio frequency data digitized voice, and radio frequency icdoel lnetcitf ii oc ant i oonf dwa thai c hi n t os upa p oc or tm pt uhtee r i dseyns tt iefmi c a toi or n o tahnedr mdiicrreoc -t processor-controlled device without using a keyboard automatic equipment identification (AEI) tr ha ei l cuasres ,o fc omnat ac hi ni ne res- ,r eaandda bt lreu ct akgs s i on r oc roddeers toon terqauc ikp ml oecna tt i sounc ha nads usage automatic identification (auto ID) db ri roeacdt l yt eirnmt o rceof me rpe un tcei nr gs yms teetmh os dws i ot hf ocuotl lhe uc tmi nagn ai nn vdoel vnet me rei nngt d a t a

RightChain™

The Language of Logistics

38 |

automatic identification system (AIS) v p a o p ro i p c c l e i e c s r a s e t i c i n o o g n g n o s i f t y t i s o e t c n e h , m n a , o n l d o b g R y i p F e a s t s s r s a u in n ch s g p a o s t n h b d e a e r r k c s e o , y d fo - i e n r n g d t , r a i y m ta a e c g n o e m t r r e y p c o t o n o g e n a n i t t d i a o t o n a f , traditional data entry automation elimination of human involvement autoracks multi-level rail cars designed for moving automobiles

availability pr eraodbya b itloi t yotpheartaat et a na ty pao isnpt ei cni ftiiemd e lae vpei el c eo fo f peeqruf oi pr mm ae nn tc ew i(l la kb ae “readiness”) available inventory (AVI) on-hand inventory less allocated or committed inventory available-to-promise (ATP) cmouml tpi pl el ex c oc ommppuot antei onnt so ff trhoema vma i ul al tbiipl iltey dl oa ct ea toi of anns owr di tehr r ec oq mu i pr ilne gx scheduling requirements average inventory level (AIL) ap vi eecreasg, ec ai ns evse, nettocr. )y t lyepviec la lml yecaosnu sr iedde ri ne dpohvyesri ctahl eucnoiut sr s(ee .ogf. ae aycehaer s ,

Edward H. Frazelle, Ph.D.

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average inventory value (AIV) ap ve er iroadg eo f vt ai ml uea tci oomn pouf t ei nd vaesntthoer ys uomv eorf tt hhee i nc ov ue nr st eo r oy fv aa l usepsetcai fki ee nd abtytthheeennudmobrebreogfipnnoiinntgsoifnstoimmee number of points in time divided average replenishment quantity (ARQ) ar enpi lnevnei snht omr ey nmt aqnuaagnetmi t ye not vset ra t ai s tpi ca rctoi cmupl aurt epde br iyo dd i voifd ti ni mg et hbe yt ot thael number of replenishments received during that time AVI (1) available inventory (2) automated visual inspection avoidable delay tuinmnee cdeesl as ay rnyo at na dl l oiws eddu ien tsot afnadc at or rds t iumned ec ra l coupleart ai ot on rs bc eocnat ur os le ai tnids responsibility AWB air-way bill

RightChain™

The Language of Logistics

40 |

B Terms BAF bunker adjustment factor B/O backorder

B2B business-to-business B2C business-to-consumer B2G business-to-government backcasting si di me nutliaf yt i ntgh ea ma l gi xo roift hf omr e cyai es ltdi ni ng ga ltghoer i tl ohwmisn wg iftohr he ci satsotr iecrarl odra t(aa kt oa "best-fit forecasting") backhauling (t o1 )mpar xa icmt i ci zeeovf ei nhti ec lrel euatviilni zga pt iiocnk u(p2s) arne dt udr ne pmo soivt se mo ne na ts ionfgal ecraoruot er choanutl iani ng ear sthoiwp ma rednst tbhaec pk ooi vnet rwphaerrt eo tf haer ionui tt ei ailt l ho aa sd tor ar ivgei lneadt e d ( 3 )

Edward H. Frazelle, Ph.D.

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backorder (f i1l l)e da n aos r ds oe or np l aa sc ead rf oerp lgeonoi sdhsmt he na tt aarrer inv oe st y(e2t) i nf r es qt oucekn tt lyyp igcoa ol l dy cgaonv de ri dnamt eesn tf o ro pc reorsast i odnosc,k i nagn d( 3 ) wc oh me nm otnh ei rne c a aprt ei v e emx calruksei vt se, distributors for items backstop mreevcehrsainnigcadlidreecvtiicoenpreventing a loaded conveyor or elevator from backtie df oervmi cien gutsheed l otnog imt uadi ni nt aa li nf l usep sapc iancge ionf pbaal lcekt -rtaoc- kb iancgk p a l l e t r a c k s banding (r 1e d) ul occea tvienrgt ipc raol dour cdtesri np ircakcekrs ti nr abvaenl dt ismoef swi mi tihl a trhaec tmi voi tsyt lpe ov eplusl at or pb ur onddul icntgs pprloa dc eudc t at ot gtehteh emr owsitt hc omnevteanl ibeannt dlse v e l s f o r p i c k i n g ( 2 )

bank draft ad i dr eecmt ianngdp af oyrmpeanytmt hernotuogrhdaenr ii ns st euremd ebdyi aar yS eblal enrk a g a i n s t a B u y e r

RightChain™

42 | The Language of Logistics bar code ac or rr ar ey s poof nrdei cntga nt og ua l sayr mbbaorlso gaynwd h si cpha cwehs e na rsrcaanngneedd ibny aa b pa ra tctoedr ne reader converts the bars and spaces into letters and numbers

bar code reader ah edl edv i cbea ru s ec do dt eo i dr ee andt ief yr , a ni nd- dl i ne ceo dbeaar bcaordceo dreesaydme rb, o la(ned. g . ho ma nndi -- directional bar code reader)

barge oflfatte-nbofottuonmdeodn, pcoanwaelrseadnodrrnivoenr-spowered boat for carrying freight

Edward H. Frazelle, Ph.D.

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barrel equivalent of 42 U.S. gallons of petroleum bartering tprraondsuaccttsi o, snebr ve ti cwees e, na nadB/ uo yr eprr ai vni dl e Sg ee lsl earnidn vdoelvvoi ni dg ot hf et heex cehx ac nh ag ne goef of monies base pallet (r 1a n) dpoaml l el yt sseerl evci nt egd a sp atlhl eet f uo us endd attoi o nd eftoerr ma i ns tea ctkh eo f s tpraelnl egttsh ( 2o r) durability of a group of pallets batch manufacturing oprrobdautcchinegs parts or bulk goods in non-continuous, discrete runs, batch picking (m1a) xpi mi c ki zi ne go mr doerre ptihcakni nogneef foi rcdi eenrcayt, ab yt i ma geg r( 2e g) agtri no ug pai lnl go or dr de er sr sf ot or tf ahcees ar me qeuiitrei nmg asnudbps iecqkui ne gn tt hme me c ahlal ndiuc ar ilnog ra ms i anng ul eavl issoi trttoi ntgh eopf itchke- merchandise to reestablish order integrity before shipping

RightChain™

The Language of Logistics

44 |

batching w o (1 f h ) o e p o n p e a r e a r s t a y i

t o s i t

n n

e s g

a c

y l u s l b e r r

n e s r e e u i

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i a a n t s c i s o o ; l n u

u , c

h r e e r a R i w n A t G i s t f p o

m e

r r a E h ( e B

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n r e m v r

a e r t d h ie t T s s R V a U I C v C e

a t

t o t K E

a e f m U e A A le

s t h t k

a e s a R fi l Y Y , , ( 2

s r o n A ly

k ( f e L d s s p p )

s 2 o i ) n a a d d B b

n r e

a u d n f f

m ir o a i in n te

i e m l d y z c y

c a s a l c y o t i i

y g t o o C e h B B ic r T d

r e a q f n s d d ig e e n , h

m ,

l h y

p a e a a n t i r t d

m f

order bay d f ( u 1 e n ) b b of y y a t t h h

a i e o d b e e

s n p l o a a c r r

b a e y l k e e a a

c o f i o f r i u o f r

c p r e m e q q

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A g im .

Y S i , T R e

p R a U n c

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r a a e ed d d ab ryepaows ti st h, pi ni l laa rs se ,cct oi ol un mo fnas , wo ra rpeahi no tuesde ,l iunseusa(l 3l y) oo un tel isneerdi eos robf ov ue rntdi ceadl storage locations when considered as a set BCO beneficial cargo owner BDA big data analytics bed splaidrteosfdaucroinngvceoynorveuypaonncewhich a load or carrying medium rests or belly pits (holds) ccaa rbgi no oafnadnl uagirgpalgaen set(oarkaag ecacrogmo phaorltdm) en t s l oca t ed und ern ea t h t he belt conveyor oa rcmo nettianlumo uosv,i cnigr couvlearr rboelllte rms aodreaomf featbarl ibc e, rdu b b e r , p l a s t i c , l e a t h e r , h u i s c n e k r ; i t e e

Edward H. Frazelle, Ph.D.

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benchmark (c 1o )m ms toann dtaor dt h eo f i nmd ievai ds uurael muenni tt s wo fi t ha peonpouulgaht i o cnh at roa cf taecri li si ttai ct es r( 2e l)i aab sl et acnodma pr da roi sf omn eoaf saut rt er imb ue tnets tfyopr i cuanl il tys us es el edc ti end j of rbo me v aa lsuaamt i po lne, performance ratings, operational standards, and cost estimating beneficiary (o1f )creendtiittyistoiswsuheodm money is payable (2) entity for whom a letter BFF best fit forecasting BI business intelligence bi-directional a a v n u eh t d o i c mw le a h t o i i c r c h a c l a l c y r a o a n u n s d e o l w p w e it r h h a i t c e e h q u d in a o l e f t s u h n n e c o t t f i o o h r n a w a v a l e i r t a d y s poer c irfei evde rfsreo ndt iorre cbtai ocnk big data analytics (BDA) addatvaanbcaesdespattern recognition applied to large scale transaction bill of lading (BOL, B/L) ad o fcourmme, nat icnt ign sgh iapsmae nct oi nn tf or ar cmt a bt ieotnwienecnl u da i nsgh ioprpi geirn , adneds t icnaartriioenr ,, carrier(s), number of items included in the shipment, etc. bill of material (BOM) hp ireordaur cc th ii nc acll ul ids itnogf si tuebm- assus seemdbi lni etsh ae nmd adneusfiagcntautri eo no r a s s e m b l y o f a

RightChain™

46 | The Language of Logistics billing carrier cpar rerpi ae rr i n egxtehceuwt i na ygb i li lndi toi ac lu ml iennet a nh ad ut lr a ns es mr viitctei n grtehsep oi nnfsoirbml ea t ifoonr to any subsequent carriers bin shelving metal shelving used to house small items

binnables (( 12 )) isnmv ae lnl tiot er ymisn sat opri ec kd i ne igt hs leort os nt osrhe edl vi ne ss toere ldsi rheecl tvliyn gi n, acso onpt apionseerds t( op ipe ac lel se)t or af cmk sa t(e3r)i aol radreer ppiicckkei nd gf rsoyms t eomp ei nn wc ahs iecsh osrms ahlel l qf ubaonx tei st i teos fill orders (aka “bin stock”) bins osmpeanll sptloacsktickeoerpicnagrdubnoitasrd containers usually used for storing

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biometrics si dt ue dn yt i t yo fo fmheut mh oadnss tboa suendi quupeolny orneec oogrnmi zoe r ea ni ndt rai un tshi ce np thi yc as itcea lt hoer bs ieghnaavt iuorreasl a ntdr aoitt hs e r isni cml ui ldairnrge c of gi nngi teiropnr mi n et st ,h o dr es tui ns ae dl i np taat tnedrenms , with passwords or tokens birdyback imnotetromr sohdiaplmopenertation of highway freight containers for a joint air- block ri de ec tnat ni f gi eudl abry, si tqsul ao rc ea toi or nc wy l ii tnhdi nr i ca apl apl lael tl eats dc eo cr kn esrpbalcoecrk, , fer ne qd ubel no ct lky, edge block, inner block, center or middle block block pallet tdyepcekof pallet with blocks between pallet decks or beneath the top bottom deck deckboards comprising the lower, load bearing surface of a pallet blanket order as pg reec ei fmi c egnototdospouvrecrh aa ns eeoxrt eanpduerdc hp ae sr ei oodr odfe tri fmo re ,at ygpi vi ec anl lqyuoannet i yt ye aorf block stacking (w1i)t huonuitt r laocakdi ns gs (t a2 c) kaecdt i oonn otfhpeu tf lt oi nogr oabnj de c tosni nt toop a obf l oecakc hp aot tt he renr in a storage area, usually more than one tier in height

RightChain™

48 | The Language of Logistics blocking wood or metal supports to stabilize shipments (aka “bracing”) blocked trains r( ba il loccakrss) gcraonubpee du nwc oi tuhpi nl e ad at rnadi nr obuyt edde st ot i ndai ftfi eorne ns to dtehsatti nsaetgi omnesnat ss bt hr ee at rkaui np ma ot rvaeisn t ahnr od usgohr tv ianrdi oi vuisd juuanl crtai oi l nc as resl iamt ienaacthi nj gu nt hc tei on ne e(da kt oa “unit train”) bobtail wm iot thooruct aar rt ri eari l teerr omr cr eo fnetraei nn ceirnagt taa nc ho end- r(eavkean “udeetardahc et oard m” ) o v e m e n t

bogie acosnettaionfewr heels built specifically for use as rear wheels under a BOI buckets of inventory

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BOL bill of lading BOM bill of material bombadier sorter ss owritnagt ii no ng dsoyosrt se mt h r oi nu gwh hc ihcuht eist et mo as daersei r eddr ol opcpaet di o nd (oawk na “ bt hormo ub ga hy sorter”) bond port p“foirrsttwphoertreoftchaelli”n)itial customs entry of a vessel is executed (aka bonded goods dutiable goods, upon which excise duty has not been paid bonded warehouse (g1o)o dwsaor enhwo uh si cehapuat yh mo rei znet do fbdy uCt iuesst oi smdse faeurtrheodr ui tni et si l ftohre sgtooor ad gs ea roef rwehmeor ev eddu t(i2a )b lseelcaunrdeedd fiamc ipl iot ryt ss ua pr ee rs vt oi sreedd bp ye ncduisntgo tmh se i ar ur teh- eoxr pi toi er st ,, oorthreerlecahsaerognesassessment and payment of import duties, taxes, and booking sthpeacaeccreepsetarnvacetioanndorcaarrrriaanggeeomf efrnetisghbty a shipper with a carrier for booking number (BN, B/N) ar e suenr vi qaut ieo nn uf omr ecrai rcr i oa gr e aul ps ehda ntuoms ee rc iucr ei deeqnutiipf ime re nfto ra n ad ascpteac isf iac control number prior to completion of a bill of lading bottom-up forecasting (BUF) fsot ar ertciansgt ipnogina pt pf orroda cehmeamndp lfooyriencga sptoi ni ngt o f c o n s u m p t io n d a ta a s t h e

RightChain™

The Language of Logistics

50 |

BOU backordered units box aa creatsauial lstteorrme lroecfaetrioennciinngreatnaiol cloegainstcicosntainer in ocean logistics or boxcar daocolorssed, box-shaped rail freight car with a roof and side or end

break-bulk (c 1a )r , t oc ounntl aoiande ar ,n dt rda ii sl et rr i, bourt esah ippo r(t2i o) nao rf aacl li loi tfyt hwe hc oe rnet ebnrt es aokf -ab rual ki l activity occurs break-bulk terminal ar e dc ei si vt reidb uf rt ioomn bf aoctihl i tiyt s t hs ma ta ul l ne rl otaedrsmai nnadl sc aonnds oflri do amt eost hs he ri pbmr eeankt s- bulk terminals bridge plate ma leotaadl ipnlgatpelautsfeodrmto span the space between a rail car or trailer and bridge point ti nhleanntdr al oncsaptoi or tnedwthoear ec oc aarsgtaol ipsorret cfeoirvleoda dbiyn ga n o c ea n c a r r i er an d

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bracing sr auipl cpaorrst,sc (own toaoi nd e, rms eotra lt roari loetrhs e(ra) ktao “hbol ol dc kf ri negi g” h) t i n p l a c e i n o r o n broken case (to1)smanalolppeanrtcsapsieck(ainkga "less-than-full-case") (2) general reference bridge crane r h li u o ft n r i i n w z g o a n y d s t e a v l a i n c g d e ir d i m n e s r o t s u a n l s l t e u e d p d p a o o t r n t r e ig a d h b t a r t a id n e g g a e l c e h s c o e o n n n s d i t s h b ti e y n g b t r r o a id c f g k o e s n p r e i r d o o i v n r i g d t i w o n n o g tahrreeaeo-dveimr wenhsiicohntahl etrbarviedlgceomveorvinegs any spot within the rectangular

broken stowage (( 12 )) laonsys vo of isdp ao cr ee rme sput yl t isnpga fcreo imn ap ac coknat ga ei ns eorf ni rorte og cucl ua rp si ei zde boyr cs ahragpoe broker ac agrerni te rws ihnor eatrurrann gf oers ai npteerrcsetna ttaeg emoofvtehme ef rnet isg hotf cghoaor gdes b y o t h e r

RightChain™

52 | The Language of Logistics brokerage scopmecpifeiendsabtyiotnarpifafiodrtcooantfrraecitght forwarder or customs broker as brownfield refurbishment or renovation as opposed to building new BTS Bureau of Transportation Statistics BU business unit buckets of inventory (BOI) ai nrveef ne rt oe nr yc ei nt ot ht hr ee ep du irspt oi nscetf ubluaclkl oe ct sa t-i os na ,f et rt ay cskt ioncgk ai nndv epnl at onrnyi n( gS Sf oI )r, lot size inventory (LSI), and pipeline inventory (PI) BUF bottom-up forecasting buffering svtaorri ai nt igo "nbs ai cnkr- autpe"s oorf rs euspeprlvyeasntdo cdke/mi navnedn t o r y t o a b s o r b e x p e c t e d buffer stock t( o1 )s t aab i lliazreg teh eq ucaonmt imt yo doi tfy ' sa cpormi cme o(d2i )t y shteolcdk ihne l ds t otroa gme a nu sa egde varying rates of supply and demand bulk carrier ci nacrlrui edri n gp rgirma ianrsi l, yo r euss,ecde mt oe n tt raannds ps iomr ti l aurncpaar cgkoa g e d b u l k c a r g o p s (1 i e t ) r e c a w e b i h a v n e e r d d e o e e n n x e v p d i a r , o n id n s l i m e o d n e , n o o t r r a l r u e c n d o d e n e v t r a e u m l t o i i p l n i m z a e t e d i n o i t n n i d ( s 2 u c ) s o t g m r e ia p n l l e i a c r n a a d l t e r c d e o f b e m y r m e r n e e c a r e

c l i o t a

o r l

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bulk cargo (cea.rgg. ogrsahiinp,pceodall,oaonsde cinemtheenth)old of a ship without mark and count bulk freight un-containerized and un-unitized freight bulk freight container ccoonmtmaionderitiwesitthoabedihsochuasergdeahnadttcrhaninspthoretefrdont wall allowing bulk bullwhip effect ii nn cc rr ee aa ss ee iinn i nv va er inatboirl iyt yl e ov ef l so rtdhea rt osci zceusr ma nodv i nt hge b aa cc kc owma rpdasn yi ni n ga smuapnpulyfaccthuarienrsftroomsupcpolniesrusmers to retailers to wholesalers to

bundle acomseptoonfenmtsetrochgeatnhdeirse created by wrapping various items or bunker adjustment factor (BAF) fcaocsttosr(auksaed“futoel caodmjupstemnseanttefasctteoarm”)ship lines for fluctuating fuel

RightChain™

54 | The Language of Logistics business to business (B2B) bg ouvs ienr ensms etnrta n s aecntti iot ni ess b e t( wb ueseinn etsws -ot o b- guosvi ne er ns sme se nat ,s o pBp2oGs)e d ot or consumers (business-to-consumer, B2C)

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C Terms C-TPAT Customs-Trade Partnership Against Terrorism C/O customer order cabotage ocean shipments between ports within a nation CAC (1) commercial air carrier (2) commuter air carrier CAF currency adjustment fee canal man-made waterway cut into land to connect two bodies of water

RightChain™

56 | The Language of Logistics cantilever rack sc teonrtaegr ep roasct ks fwr ei tqhu emnet tl ya l u"saerdmws "h ce anntt hi l eervee ri es da frreoqmu i cr oe ml u emnnt sf oarn da caonmd po tl ehteerl yl ounngoobbs jtercutcst et hdartaacrkeonpoetnpi nagl l et yt ipziecda l l y h o u s i n g ba r s t o c k

capacity planning (CP) pt rraoncseps os r t aot fi o n ,daent edr ms t oi nriangge c at ph ae c i t yp rroedquuci rt ieodn t, o ml aebeotr a, s es ruipe sp loyf, demands (aka “capacity requirements planning” (CRP)) Capesize vl aersgseerl st hpar ni mtahrei l ny auvsi eg da bf oi l ri t yt r ao nf st ph eo rSt ui negz coora Pl aa nn da mi rao nC aonr ea l tshwa thai crhe mbeutswteternavoecresaensthe Cape of Good Hope and Cape Horn to travel capitalization rate aanraatsese(%t /year) used to annualize the cost of carrying or holding

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captive pallet psyasllteetminotreonwdenderfsohripuse within the confines of a single facility, cargo physical freight loaded into a container, trailer, rail car, or vessel cargo agent irnedtuivrindfuoarl coormcomripsosrioantiopnayrmeteanintsed by a carrier to solicit freight in cargo manifest document listing all cargo on a specific vessel voyage or trip cargo NOS cargo not otherwise specified cargo not otherwise specified tuhnedreart ae es pn et rcyi fiinc iat et amr iof frt shuabt –c ai tne ma pipnl yt ht eo caopmp lmi caobdliet i et asrni fof t c o v e r e d cargo density ratio of the weight of cargo to the cube of cargo car-on-track conveyor constantly spinning tube propelling a carrier along its guidepath

RightChain™

58 | The Language of Logistics carload qtouaqnutailtiyfyoaf sfrheiipgmhtenretqfouriraedcatrolofaildl arartaeilcar or quantity necessary carnet (o1r ) sceunsdt ommesr dc hoac nu dmi se en ti npteor mc ei rt tt iani ng iftosr he oi gl nd ecrotuontter mi e sp o( rf oa rr i ldyi scpalraryy, dp eo ms t oi nngs tbroant idosn( 2o)r a ns iymoi fl avra rpi ouur ps oC suesst )o mwsi tdhoocuut mpeanyt isnrge qduui trieeds f oo rr crossing international borders carousel (c 1o )n t si nmuaolul sp al or tosp s tmo roangoer, a ri le t rmi eovvai nl ga nsdt opr ai cgkei n cga rsryisetresmp awsitt h a na or opteartaet po ra’rsa pl l ieclktion gt hset af ltoi oonr ((32)) vheorrtiizc oa nl ct aa lr oc ua rs oe ul ss ae rl se aernec loops ee nd aa nn dd rotate perpendicular to the floor

Carriage and Insurance Paid To (CIP) dI Ni sCcOh Ta rEgReMs t uhne dme rt owt hhiec hc aar rSieelrl eorr cal enaortsh tehr eei rn tgi ot yo ds tsi pf ourl aetxepdo br ty at nh de rSeesl lpeor nasti bal e nfaomr et rda npsl apcoer toaft i os hni pcmo setns t aws shoecri aet eudp owni tthh ed eSlei vl leerri ni gs

Edward H. Frazelle, Ph.D. gpolaocdesoafnddesptrinoacutiroinng minimum insurance coverage to the named Carriage Paid To (CPT) IdNi sCcOh Ta rEgReMs tuhnedme rt ow ha i cc ah rar iSeer l loerr ac lneoatrhsetrh ee inrt gi toyosdtsi pf ou rl aet xe pd obr yt at nh de Sr eesl lpeor nasti bal e n afmo re d t ph lea c et r oa nf ssphoi pr tma teinotn w choesrtes u paos sno ct hi aet eSde l l ewr i tihs dreeslipvoenrsinibglegfooordpsrotocutrhinegnianmsuerdanpcleace of destination but is not carrier (t r1a)n s pi nodritvaitdi ouna lo f og or o dcso(m2p) abni ny o ne na gcaagreodu s eiln( 4 )tah et r o lcloemy (m5e) rucni ai tl tbheaatmt r, aj ivbecl sr aonne tohrebbroi dt tgoemg ifrlda ne rg et ootfraa nms po no rotr aai ll ooardp a t e n t e d t r a c k cartage m“dorvaeymageen”toro“fhaguoloadgse”)for short distances within a city (aka cartment counset ol omc as t fi oo rnmt op ae nr mo tiht teirn gu ni nd –e br oCnuds tcoamr gs oc ot on tbr eo l t, rwa ni tshpi no rtthe ed sf ar omme C tr u a s n t s o i m t s district typically in a motor carrier’s possession during | 59

RightChain™

60 | The Language of Logistics case pick opradlleert opricbkrionkgefnulcla, suenpoipcekninegd, shippable cartons as compared to

case pick from pallet oarrederrecpeiicvkeidnganfudllsctaosreesddirectly from the pallets upon which they cash against documents (CAD) ipnrti eorrn at ot i opnaaylmb euns itn be sust pdrooet so cnool tu nr de leera ws eh idcohcau mS eelnl etrs sthoi ptsr agnosofde sr ob wa nnke rhsahsi pm aadned a pn oi rs rs ee vs soicoanb loefptahyemme nutnf toirl tthhee gBouo ydes r ’ s o v e r s e a s cash in advance (CIA) ft ihnea Sn ec li lael r t rr ea cnesiavcetsi opna ypmr oet no tc ob le fuonrde egrowo dhsi cohr as eBr uv yi ceers raerl ee ar se el es aas ne dd by the Seller thereby minimizing the Seller’s risk cash-to-cash cycle time (r 1e c) e invui nmgbpeary mo fe ndtafyosr gboeotdws eseonl d p( 2a y) icnagl c uf ol art erda aws I mn vaet ne rt oi arlys Daanyds oPfeSriuopdpfloyrpMluasteDraiayls of Sales Outstanding minus Average Payment

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category management tbhuesipnleasnsnuinngitsand management of product categories as strategic CBLT counterbalance lift truck CBM cubic meter CBP Customs and Border Protection

CCU cube capacity utilization CDC central distribution center CDI contingency/disaster inventory CDM consensus decision making CDP constrained demand plan

cellular manufacturing po ra r"tci et ilol sn"i nwghoi cf ha pmr oacneusfsa cat ug rr ionugp si ny gs t oe fms iimn tiol a sr mp aa lrltesr, ps ur obds yusctt es mo sr wf uonrckt i-oi nn-sp rtohceersesb yi n rveednut oc irnyg ( as ke tau p“ f atci mt oer ,y twh riot huignh pau tf a tcitmo rey ”a nodr “group technology cell”) center of gravity (COG) poroipnitecoef oeqf ucailrigborium of the weight of a containership, truck, train

RightChain™

62 | The Language of Logistics certificate of inspection (COI) (g1o)o ddso) c wu ma se ni nt gc oe or tdi f cy oi nngd itt hi oant immemr cehdai an tdei lsye p(rsi uo cr ht oa si t sp sehr ii sphma ebnl et (v2e)s s edlo’ sc uc omme pn lti ainscseu ewdi t hb ya p rpel iscpaobnl es ilbalwe s aauntdh or er igtui el as t icoenrst i f y i n g a certificate of origin (COO) caedrotaciunmoernigtinverifying that goods in a particular shipment are of a certificate of weight official document certifying the weight of a shipment CF consensus forecast CFR (1) case fill rate (2) customer fill rate CFS container freight station changeover cost cl ionset tt oo ms eat uk pe (ap pr erpo adruec toi or nc hraunng ef oorv ear )p aa rmt i cauc lhairn ei t eomr porro dcuhcatni og ne between items (aka “setup cost”) chargeable weight wdiemigehntsioofnashl wipemigehnttoursneedt wtoeidgehttermine freight charges such as chassis (i n1c) l us duipnpgotrht ei nwg hf er ae ml s eo roef nag i vneehoi cnlteo, wt rha ii cl ehr t ho er mc oent at al icnoenrt, aui ns ue ra lol yr tcroani lt eari n iesr f li ox cekdi nf go r dtervainc se ps oirnt a toi rodne r( 2t)o f rs ae mc uer ewai t hc own thaeienlesr afnodr movement

Edward H. Frazelle, Ph.D.

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check digit a number used as a mathematical verification of accuracy chipless tag mm an i a c y R r o F u c I s D h e i p t p a s l CIA cash in advance CIF Cost, Insurance and Freight circumvention actions taken by traders to avoid paying duties CIV commercial invoice contingency inventory ii nn tveernrtuoprtyi o npsr os cuuc rheads sotrr i kpersoadnudc enda t utroa l pdri os at es ct et r sa g a i n s t s u p p l y commercial air carrier (CAC) aRne gaui lra tciaornr si etro cceornt di f ui ecdt si cnh ae cdcuol re ddasnecrev i wc ei st ho nt hsep eFceidf ieerda rl oAuvt ieast i o n commuter air carrier (CAC) amiraxciamrurimerps aoyploeardastinofg1a8i,r0c0r0afpt owuintdhs6o0r loerssfewer seats or with completely knocked down (CKD) dfaicsialsitsaetme btrlaynosfpaourttoamtioonbiles or other large assembled products to CKD completely knocked down g a stthi ca to rd oc eosn dnuoct t di veep pe no dl y mo ne ras si ni l isctoe na dmoifc rsoi lci choi pn -wb ahsi ec hd

RightChain™

64 | The Language of Logistics claim dd ue me at on da f loors ps asyums teani nt , esdu pt hproorut egdh bayl l eevg iedde nnceeg, l mi g ea nd ce eu p( eo. gn . adcaamr rai ge er claim, loss claim, overcharge claim, reparation claim) Class I Motor Carrier ci natrerri es trast ewa intdh i natnrna sutaalt ec) aorfr$i e1r0 mo pi lel iroant i no rg mroervee n u e s ( i n c l u d i n g Class I Railroad railroads with at least $277 million annual revenue Class II Motor Carrier icnatrerri es tras t ewaint hd i na tnrnaus taal t ec)aor fr iaetr l eoaps te r$a3t i mn gi l l iroenv ebnuut el se s s( itnhcal nu d$i 1n 0g million Class III Motor Carrier cinatrerriestrastewaintdh inatnrna sutaaltec) aorfrlieesrs tohpaenra$t3inmgillrioevnenue s (incl uding classification yard railroad yard with many tracks used for assembling freight trains clean bill of lading st ht reari eg lhetv oa rn tofrrdeei gr hbt ihl laos fbleaedni nr ge cies isvueeddi nb ya na acpapr rr oi eprr idaet cel ca or inndgi ttihoant, without the presence of defects or shortage clear height the distance from the floor to the lowest overhead obstruction closed aisle a storage aisle with entry and exit from the same, single end closed loop forecasting (CLF) af o rf eocraesc ta satcicnugr apcryoac ne sdsa dt hj uast t mb eegnitnsst oa nt hde ef onrdesc aws tiitnhg ap rroecveisesw o f

Edward H. Frazelle, Ph.D. CLV customer lifetime value CM (a) centimeters (b) continuous moves (c) cubic meters CMI committed inventory

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CMV commercial motor vehicle CNG compressed natural gas

RightChain™ ao nf ai nl pdhuas -t nr yu ma ne rdi c gboavrecr ondmeesnytmobroglaongiyz aatdi oo np st e fdo br ybao wt hi di en dniuvmi dbuearl product identification and shipping package/container identification co-load tlowaodshipments from different terminals combined to ship as one collar cinotlolaapsbiobxle wooden container or bin which transforms a pallet COC changeover cost COD (1) cash on delivery (2) collect on delivery (3) carried on dock Codabar ac hnaeraarcltye rb asre tc opdrei ms ya mr i lbyo ul osgeyd pi enr mn oi tnt-ignrgoec ne rcyo drientga iol fptohien nt uomf sear il ce applications, blood banks and libraries Code 39

66 | The Language of Logistics Code 93 aAnS CaIlIp hc ah-anrua mc t eerr si c pblaurs c4o3d e asl py hmab- no ul omg ye r ai cc ccohmamr aocdt eartsi n ga nadl l f1o2u8r control characters COFC container on flat car COGS cost of goods sold cold chain ftoe mo dpse raant udr ep- choanrtmr oalcl eedu tsiuc aplps l, y ac hs a iwn ef ol lr paes r i sf ohra bsl eo mg oeo dcshseumc hi caasl ampapi lni tcaaitni oan gs i vwehne treemi npsetroartaugree ar anndg he at no dpl ri ne gv eanctt ipvri toi de us cctosnpt oi ni luaaglel y collaborative planning, forecasting and replenishment (CPFR) rme af enruefnaccet u rteor s sahnadr er de t adi laetras t oa nbde t tpelra nmnai tncgh saucpt ipvliyt i ea sn d bdeetmw ae ne nd for product collaborative transportation management (CTM) mtraunltsippolertasthiiopnpseerrsvijcoeisntly planning, procuring, and executing collapsible container cs oe pn at ar ai nt ee rptihe ac te smoaryf bo ledde ids ai ns soermd be rl etdo, sc ao vl lea ps tsoe rda og re ds pi samc ea nwt lheedn i nt ht oe container is empty

Edward H. Frazelle, Ph.D.

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collect on delivery (COD) Lc oolgl ei scttiecds bs ye rtvhiec ed et el irvme r yu nc adrerri ewr ah ti cthh et ht iemree ot af idl epl ri vi ceer yo f g o o d s i s combi aircraft auiprpc rearfdt eucnki fqourewl ya rddeosfi gi tnsepda st os e na cgceor ms ema toidnagtceo mc aprag rot ml oeandts i n i t s combination rate transportation rate composed of one or more published rates commercial invoice (CIV) aprbimillarfoyr sghoipodpsinigssduoecdufmroemnt ausSeedllerbytocua sBtoumyesr wseorrvldinwgidaes tfhoer rc eocmomr doodfi tay t rcaonnst ar oc tl i oann db evtawl ue ae tni oann ea xnpdo rr et eprr ea snednat inn igmap oc rotme rp l e t e committed inventory (CI) cr eusset or vmeedr si n, bvue snitnoersys huenl idt ss, pa encdi/f iocra lcl hy aonrn ea ll sl oocfa bt euds i snpees cs i f i c a l l y f o r common carrier pb uu sbilni ce sfso ro rt raagnesnpcoyr ttahtai ot ni s oi fmppearrst oi anl lsy, ag vo aoidl as b, l ceu fror re nhciyr e atnod /t hoer documents conair container ur enfirti ga enrda rt eedl i acnotnotna ienxetresr nc aolosl eodu r wc eist hoof ur te ftrhi geei rr aot wi o nn irnecf lrui gdei nr agt oi onn- board refrigeration and dockside refrigeration concealed damage pdaacmkaaggeetohractoisntnaoint eervident by viewing or inspecting an unopened concentration point caomnbetinweodrkto mnoadkee fuwllhterruecklloeasds-tshhaipnm-treunctks load shipments are

RightChain™

68 | The Language of Logistics conductive ink osof pcohnisdtiuccattiendgianskigconnaltaining powdered silver and carbon, capable conference (o1v )e ra ftfhi lei ast ai omn e orf ovuet ses( es l) owwhnoe ar sg raened t oc ocmh amr og ne uc anri froi er rms or apteersa tai nn dg ac opnp sl ye nutn i of of r me x ti se trimn gs omf ceamr rbi eargse (o2f ) “t chleo s ec od n” fceorne fnecree n (c3e )s r“eoqpuei nr e” cteocnhfnericeanlcaensd afilnloawnciaml setmanbdearsrhdisp to anyone meeting certain confirming bank cboannfkirmwahtiicohn, toata Ltehteterreoqf uCersetditof an Issuing Bank, adds its confirmed letter of credit aa nd vi ri srienvgo cbaabnlkesl estot elro on fg car se dt iht eg us ea lrlaenr ’tse eddo cbuymbeont ht st ha er ei scsoumi npgl iaanndt with the terms of the letter constrained production planning (CPP) pmraonduufcatci tounr i n gp l arnens oi nugr c e sw i ti nh c l ucdoi nngs t r laai bnot sr , mp laaccheidn i n go n h o ukresy, storage, and raw materials connecting carrier cc aornrni eerc twi nigt hl ian kd ibreetcwt epehny st wi c aol ocromn noercet icoanr rwi eirtsh a n o t h e r f o r m i n g a consensus forecast cf oor- edceavsetlso ppe rde, pjaori endt , "boyn ed inf fuemr ebnet r "d ef opraerct amset ndt se r iavnedd fl reov me l s t hoef management of an organization consignee tahned p a rptoysisne as sgi loonb a l ol of g i sgtoi cosdtsr a n(saakcat i o n“ bwuhyoe ru”l t i mo ra t e l“yi mt apkoerst tei rt l”e)