Warehouse Dictionary

Facilities thru Functional Group

 

 

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F

Facilities
The physical plant, distribution centers, service centers, and related equipment.
Federal Maritime Commission
Regulatory agency responsible for rates and practices of ocean carriers shipping to and from the United States.
FEU
Forty-foot equivalent unit, a standard size intermodal container.
Final Assembly
The highest level assembled product, as it is shipped to customers. This terminology is typically used when products consist of many possible features and options that may only be combined when an actual order is received.
Final Assembly Schedule (FAS)
A schedule of end items to finish the product for specific customers’ orders in a make-to-order or assemble-to-order environment. It’s also referred to as the finishing schedule because it may involve operations other than just the final assembly; also, it may not involve assembly, but simply final mixing, cutting, packaging, etc. The FAS is prepared after receipt of a customer order as constrained by the availability of material and capacity, and it schedules the operations required to complete the product from the level where it is stocked (or master scheduled) to the end-item level.
Finished Goods Inventory (FG or FGI)
Products completely manufactured, packaged, stored, and ready for distribution.
Firm Planned Order
In a DRP or MRP system, a planned order whose status has been updated to a fixed order.
First In First Out (FIFO)
In inventory control and financial accounting, this refers to the practice of using stock from inventory on the basis of what was received first and is consumed first. Antonym: Last In First Out.
Fixed Costs
Costs which do not fluctuate with business volume in the short run. Fixed costs include items such as depreciation on buildings and fixtures.
Fixed Order Quantity
A lot-sizing technique in MRP or inventory management that will always cause planned or actual orders to be generated for a pre-determined fixed quantity, or multiples thereof, if net requirements for the period exceed the fixed order quantity.
Fixed reorder point
also called fixed order point, fixed reorder point is a preset (fixed) quantity that triggers the need for a new order being placed.
Flexibility
Ability to respond quickly and efficiently to changing customer and consumer demands.
Float
The time required for documents, payments, etc. to get from one trading partner to another.
Flow Rack
A storage method where product is presented to picking operations at one end of a rack and replenished from the opposite end.
FOB
A term of sale defining who is to incur transportation charges for the shipment, which is to control the shipment movement, or where title to the goods passes to the buyer; originally meant “free on board ship.”
FOB Destination
Title passes at destination, and seller has total responsibility until shipment is delivered.
FOB Origin
Title passes at origin, and buyer has total responsibility over the goods while in shipment.
Forecast
An estimate of future demand. A forecast can be constructed using quantitative methods, qualitative methods, or a combination of methods, and can be based on extrinsic (external) or intrinsic (internal) factors. Various forecasting techniques attempt to predict one or more of the four components of demand: cyclical, random, seasonal, and trend.
Forecasting
Predictions of how much of a product will be purchased by customers. Relies upon both quantitative and qualitative methods.
Foreign Trade Zone (FTZ)
An area or zone set aside at or near a port or airport under the control of the US Customs Service, for holding goods duty-free pending Customs clearance.
Forklift Truck
A machine-powered device used to raise and lower freight and to move freight to different warehouse locations.
Forward picking
A storage area designed for efficient piece and case order picking that is usually replenished from reserve storage but sometimes directly from receiving.
Fourth Party Logistics (4PL)
Differs from third party logistics in the following ways: (1) 4PL organization is often a separate entity established as a joint venture or long-term contract between a primary client and one or more partners; (2) 4PL organization acts as a single interface between the client and multiple logistics service providers; (3) All aspects (ideally) of the client’s supply chain are managed by the 4PL organization; (4) It is possible for a major third party logistics provider to form a 4PL organization within its existing structure (Strategic Supply Chain Alignment; John Gattorna).
FPA
Free of Particular Average.
Free Along Side (FAS)
The seller agrees to deliver the goods to the dock alongside the overseas vessel that is to carry the shipment. The seller pays the cost of getting the shipment to the dock; the buyer contracts the carrier, obtains documentation, and assumes all responsibility from that point forward.
Free Alongside Ship
A term of sale indicating that the seller is liable for all changes and risks until the goods sold are delivered to the port on a dock that will be used by the vessel. Title passes to the buyer when the seller has secured a clean dock or ship’s receipt of goods.
Free on Board (FOB)
Contractual terms between a buyer and a seller that define where title transfer takes place.
Freight
Goods being transported from one place to another.
Freight Bill
The carrier’s invoice for payment of transport services rendered.
Freight Charge
The rate established for transporting freight.
Freight Consolidation
The grouping of shipments to obtain reduced costs or improved utilization of the transportation function. Consolidation can occur by market area grouping, grouping according to scheduled deliveries, or using third party pooling services such as public warehouses and freight forwarders.
Freight Forwarder
An organization which provides logistics services as an intermediary between the shipper and the carrier, typically on international shipments. Freight forwarders provide the ability to respond quickly and efficiently to changing customer and consumer demands and international shipping (import/export) requirements.
Freight terms
an agreement between a supplier and customer that describes the responsibility for transportation costs.
Fronthaul
The first leg of the truck trip that involves hauling a load or several loads to targeted destinations.
Fulfillment
The act of fulfilling a customer order. Fulfillment includes order management, picking, packaging, and shipping.
Fulfillment Services Provider
A fulfillment services provider is an organization that operates on your behalf to receive delivery of stock from your suppliers, store inventory on your behalf and fulfill your customer orders. May also be referred to as a fulfillment house or fulfillment company or a 3PL.
Full Containerload (FCL)
A term used when goods occupy a whole container.
Full-Service Leasing
An equipment-leasing arrangement that includes a variety of services to support the leased equipment; a common method for leasing motor carrier tractors.
Full-time Connection
A communication link between two (or more) entities which is normally maintained continuously.
Full Truckload (FTL)
Same as Full Container load, but in reference to motor carriage instead of containers.
Functional Acknowledgement (FA)
A specific EDI Transaction Set (997) sent by the recipient of an EDI message to confirm the receipt of data but with no indication as to the recipient application’s response to the message. The FA will confirm that the message contained the correct number of lines, etc., via control summaries, but does not report on the validity of the data.
Functional Group
Part of the hierarchical structure of EDI transmissions, a functional group contains one or more related transaction sets preceded by a functional group header and followed by a functional group trailer.

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