Glossary

Assembly Line
An assembly process in which equipment and work centers are laid out to follow the sequence in which raw materials and parts are assembled.

Buffer
A quantity of materials awaiting further processing. It can refer to raw materials, semifinished stores or a work backlog that is purposely maintained behind a work center (production line).

Channel
A method whereby a business dispenses its product, such as a retail or distribution channel.

Groupage Freight
The collection of several small consignments to form one large shipment thereof.

Deman Planning
The process of identifying, aggregating and priotizing all sources of demand of a product.

Distribution Channel
One or more companies who participate in the flow of goods from the manufacturer to the final user.

High-runner
Goods with a high demand.

Materials planning
The materials management that attempts to coordinate the supply of materials with the demand for materials.

Materials Requirements Planing (MRP)
A decision-making methodology used to determine the timing and quantities of materials to purchase.

Order Cycle
The time and process involved from the placement of an order to the receipt of the shipment.

Slow-runner
Goods with a low demand. These products complete the range of offered products

Third party logistics provider
An organisation that manages and executes a particular logistics function, using its own resources, on behalf of another company.