Glossary


3 | A | C | F | I | M | S | W

3

3PL
third-party logistics. A buyer and supplier association with a third party outsourced for product delivery services and supply chain expertise.

A

ASN
Abbreviation for advance shipment notice. Electronic data interchange (EDI) or Extensible Markup Language (XML) from a supplier that informs the receiving organization that a shipment is in transit. ASNs speed the receiving process by enabling the receiver to check in entire shipments without entering individual line information. The ASN may contain details including shipment date, time, and identification number; packing slip data; freight information; item detail including cumulative received quantities; country of origin; purchase order number; and returnable packing unit information.

C

consigned inventory
Items that are in the possession of one party (such as customers or contract manufacturers), but remain the property of another party (such as the manufacturer), by mutual agreement.
consignment agreement
Agreement that carries the terms related to a consignment arrangement between a buyer and seller, items to be purchased on consignment, and the price associated with the items.
consumption advice
A periodic report of consumed consigned inventory generated by the buyer and sent to the seller.

F

FIFO
Abbreviation for first in, first out. A material control technique of rotating inventory stock so that the earliest inventory units received or produced are the first units used or shipped. The ending inventory therefore consists of the most recently acquired goods.

I

item subinventory
An association of an item with a subinventory that is created when you add an item to a subinventory.

M

maximum quantity
The suggested maximum quantity to maintain as on-hand inventory. This maximum displays on the Min-Max Planning report, indicating that any order placed should not force the on-hand quantity of the item to exceed this quantity.
minimum quantity
The minimum on-hand quantity at which to place an order.

S

subinventory
A physical or logical grouping of inventory such as raw material, finished goods, defective material, or a freezer compartment.

W

WIP
Abbreviation for Work in Process. A product or products in various stages of completion, including all material from raw material that was released for initial processing up to completely processed material awaiting final inspection and acceptance as finished goods.
WMS
warehouse management system. A system that supports warehouse or distribution center personnel with warehouse processes and activities, such as receiving, picking, and shipping.