Logistics Glossary



O P Q R

O (top)
On-Line Receiving
A computerized system designed to permit direct and immediate trans-mission of all receiving data from the warehouse dock to the computer.
 
Operational Audit
An evaluation of the performance levels of each function within the distribution center, from receiving through shipping. It aids in assess-ing the center's ability to respond to corporate and market needs.
 
Optimization Routines
Routines used to determine the optimal solution for a particular problem. Included in supply chain execution and supply chain planning applications to reduce costs or time in the supply chain. Usually tactically focused for use in current operations.
 
Order Selection (Order Picking)
One of the basic operating functions of any distribution center. Products are selected (picked) from warehouse inventory to fill retail store orders.
 
Out-Of-Stock
Product not in supply in a warehouse or store. Warehouse "outs" are expressed as detail items of an order placed that cannot be filled.
 
Outbound
The flow of products out of a warehouse after order selection.
 
P (top)
Pallet
A wooden platform used for stacking unit loads of merchandise. Stan-dard size is 40" x 48."
 
Pallet Cube
The amount of cubic feet of product that is allowed to be shipped or stored on a pallet.
 
Pallet Facings
The side of the pallet facing the aisle from which the stock is picked or the pallet is handled by a forklift.
 
Pallet Jack
A multipurpose handling machine that can move unit loads. There are two basic designs: the single pallet jack, capable of selecting or moving one pallet per trip, and the double pallet jack, which can accommodate two pallets per trip.
 
Palletizing
The loading and securing of products in pallet loads.
 
Paperless
The use of RF equipment or terminals to perform functions that normally require paper or labels.
 
Pick Label
A document used for selection that is applied to the product.
 
Pick List
An itemized list of products used in order selection.
 
Physical Inventory
An actual count of all items on-hand at a given time in a facility.
 
Pick Rate
The amount of time it takes a selector to pick a determined amount of merchandise. For example, a pick rate might be 170 pieces per hour.
 
Pilferage
The amount of shortages from customer, employee, or vendor theft within the facility (as opposed to shortages caused by burglaries or rob-beries).
 
Planned Item Retrieval System (PIR)
A method of multilevel order selection used primarily for slow-moving full-case, and less-than-case-lot products. Based on demand and item cube, the computer assigns a floating slot to merchandise received. Order selection is completed using a manually operated cherry picker.
 
Primary Location (Pick Location, Select Location)
The primary location from which selection takes place.
 
Product Detail
Specific information about the product, such as a product description, size, pack, units on order, etc. Note: A product ID may have multiple product details. The product detail represents a unique pack for a prod-uct. The system treats each product detail as though it were a unique product. The different details for a single product are kept in different locations and primary selections, ensuring that the product will not mix and will be selected separately.
 
Product ID
A unique code identifying a specific product.
 
Product Life
The number of days before a product will lose its flavor, taste, or color appeal.
 
Product Line
A group of products with similar uses and characteristics.
 
Productivity
The rate of production, often measured in cases per labor hour. Whole-salers measure productivity to assess labor and operating expenses.
 
"Pull" Order System
Allows stores (usually grocery) to order what they want.
 
Purchase Order
A document giving a vendor authority to ship specified merchandise in designated quantities at an agreed-upon time and price.
 
"Push" Order System
The stores (usually retail) are notified as to what items they are getting, instead of allowing them to order what they want (as in the "Pull" Order System described above).
 
Put-Away
Determines the best reserve or select location to store each pallet received. Put-away takes into account the stackability of the item, the height from the floor of a reserve location, whether the product is code- dated, etc.
 
Q (top)
(none)
 
R (top)
Rack
A structure used for the optimum storage of palletized loads. A drive-in rack has horizontal beams running perpendicular to the aisle (so the rack can be driven partway into). A drive-through rack is similar to a drive-in rack, except that it can be driven through.
 
Rack Bay
A section of rack separated by the upright supports, usually two pallets in width.
 
Reach Truck
A mechanical device used to transport pallet loads to or from storage.
 
Receipt
A number assigned automatically by the system to a purchase order receipt, when part or all of the order is received.
 
Receipt Detail
Represents a pallet of a single product that is being received. Receipts details are produced by data entry (determined by TIxHI calculating the number of pallets) or by RF receiving where pallets are entered by the user.
 
Receiving
One of the basic operating functions of the food distribution center where incoming merchandise is unloaded from trucks or rail cars and checked for condition and completeness.
 
Reefer
Refrigeration equipment for transporting frozen or perishable products.
 
Replenishment
The moving of inventory from reserve storage to the active picking slots below.
 
Replenishment Level
When the number of units drops below this specified amount, the inventory level is refilled.
 
Reserve Slot
A location where the product is stored until it is needed in selection aisles. Reserve slots may contain one or multiple pallet loads, as well as multiple items within them.
 
Retail Unit
The piece that is sold to a retail customer at the cash register.

Example:
Product: 12 oz. Cola cans
Case: 24 cans in a master case
Inner Pack: 6 cans tied together with plastic (a six-pack)
Retail Unit: A single can

In this example, if the customer orders by six-packs, the shipping unit would be set to 6. If the customer orders by the case, the shipping unit would be set to 24. If the customer orders by the retail unit, the shipping unit would be set to 1. Note: This is only one example of the many different ways that a product can be set up. A single product's shipping unit can be set differently on different product details

 
RF Unit
A radio frequency communications device that is mounted on a forklift, carried, or worn on a selector.
 
Rush Order
An order that is called in by a store/customer in which the item(s) are to be shipped the same day.