Logistic Glossary – Letter A
See Accounts Receivable.
A classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume.
Classification of a group of items in decreasing order of annual dollar volume or other criteria. This array is then split into three classes called A, B, and C. The A group represents 10 to 20% by number of items, and 50 to 70% by projected dollar volume. The next grouping, B, represents about 20% of the items and 20% of the dollare volume. The C-class contains 60 to 70% of the items, and represents about 10 to 30% of the dollar volume.
See Activity-Based Costing (ABC)
ABC Inventory Control
An inventory control approach based on the ABC volume or sales revenue classification of products (A items are highest volume or revenue, C - or perhaps D - are lowest volume SKUs.)
In cost management, a representation of resource costs during a time period that are consumed through activities and traced to products, services, and customers, or to any other object that creates a demand for the activity to be performed.
In cost management, a system that maintains financial and operating data on an organization's resources, activities, drivers, objects and measures. ABC Models are created and maintained within this system.
In cost management, an approach to inventory valuation in which variable costs and a portion of fixed costs are assigned to each unit of production. The fixed costs are usually allocated to units of output on the basis of direct labor hours, machine hours, or material costs. Synonym
Accelerated Commercial Release Operations Support System (ACROSS)
A Canada Customs system to speed the release of shipments by allowing electronic transmission of data to and from Canada Customs 24 hours a day, 7 days a week.
Acceptable Quality Level (AQL)
In quality management, when a continuing series of lots is considered, AQL represents a quality level that, for the purposes of sampling inspection, is the limit of a satisfactory process average.
Acceptable Sampling Plan
In quality management, a specific plan that indicates the sampling sizes and the associated acceptance or non-acceptance criteria to be used. Also see
A carrier's ability to provide service between an origin and a destination.
A carrier's charge for accessorial services such as loading, unloading, pickup, and delivery, or any other charge deemed appropriate.
Being answerable for, but not necessarily personally charged with, doing specific work. Accountability cannot be delegated, but it can be shared. For example, managers and executives are accountable for business performance even though they may not actually perform the work.
Accounts Payable (A/P)
The value of goods and services acquired for which payment has not yet been made.
Accounts Receivable (A/R)
The value of goods shipped or services rendered to a customer on whom payment has not been received. Usually includes an allowance for bad debts.
Certification by a recognized body of the facilities, capability, objectivity, competence, and integrity of an agency, service, operational group, or individual to provide the specific service or operation needed. For example, the Registrar Accreditation Board accredits those organizations that register companies to the ISO 9000 Series Standards.
Accredited Standards Committee (ASC)
A committee of ANSI chartered in 1979 to develop uniform standards for the electronic interchange of business documents. The committee develops and maintains US generic standards (X12) for Electronic Data Interchange.
A place, usually a physical location, used to accumulate all components that go into an assembly before the assembly is sent out to the assembly floor. Synonym
A communication by a supplier to advise a purchaser that a purchase order has been received. It usually implies acceptance of the order by the supplier.
In cost accounting, the cost required to obtain one or more units of an item. It is order quantity times unit cost.
An alert that an MRP or DRP system generates to inform the controller of a situation requiring his or her attention.
Goods in active pick locations and ready for order filling.
The process of identifying and cataloging activities for detailed understanding and documentation of their characteristics. An activity analysis is accomplished by means of interviews, group sessions, questionnaires, observations, and reviews of physical records of work.
The best single quantitative measure of the frequency and intensity of the demands placed on an activity by cost objects or other activities. It's used to assign activity costs to cost objects or to other activities.
A description of types of activities dependent on the functional area. Product-related activity levels may include unit, batch, and product levels. Customer-related activity levels may include customer, market, channel, and project levels.
A financial ratio used to determine how an organization's resources perform relative to the revenue the resources produce. Activity ratios include inventory turnover, receivables conversion period, fixed-asset turnover, and return on assets.
Activity-Based Costing (ABC)
A methodology that measures the cost and performance of cost objects, activities, and resources. Cost objects consume activities and activities consume resources. Resource costs are assigned to activities based on their use of those resources, and activity costs are reassigned to cost objects (outpputs) based on the cost objects proportional use of those activities. Activity-based costing incorporates causal relationships between cost objects and activities and between activities and resources.
Activity-Based Costing Model
In activity-based cost accounting, a model, by time period, of resource costs created because of activities related to products or services or other items causing the activity to be carried out.
Activity-Based Costing System
A set of activity-based cost accounting models that collectively defines data on an organization's resources, activities, drivers, objects, and measures.
Actual Cost System
A cost system that collects costs historically as they are applied to production, and allocates indirect costs to products based on the specific costs and achieved volume of the products.
The labor, material, and associated overhead costs that are charged against a job as it moves through the production process.
Advance Material Request
Ordering materials before the release of the formal product design. This early release is required because of long lead times.
Services provided to the customer after products have been delivered. This can include repairs, maintenance, and/or telephone support. Synonym
A rate bureau publication that contains rates for many carriers.
An enterprise authorized to transact business for, or in the name of, another enterprise.
A net advantage a company gains by sharing a common location with other companies.
Aggregate Tender Rate
A reduced rate offered to a shipper who tenders two or more class-related shipments at one time and one place.
Air Cargo Agent
An agent appointed by an airline to solicit and process international airfreight shipments.
Air Cargo Containers
Containers designed to conform to the inside of an aircraft. There are many shapes and sizes of containers. Air cargo containers fall into three categories
1) air cargo pallets 2) lower deck containers 3) box type containers.
Freight that is moved by air transportation.
An enterprise that offers transportation service via air.
An exempt for-hire air carrier that will fly anywhere on demand; air taxis are restricted to a maximum payload and passenger capacity per plane.
Air Transport Association of America
A U.S. airline industry association.
Air Waybill (AWB)
A bill of lading for air transport that serves as a receipt for the shipper, indicates that the carrier has accepted the goods listed, obligates the carrier to carry the consignment to the airport of destination according to specified conditions.
Airport and Airway Trust Fund
A federal fund that collects passenger ticket taxes and disburses those funds for airport facilities.
An air carrier that transports cargo only.
American Society for Quality (ASQ)
Founded in 1946, a not-for-profit educational organization consisting of 144,000 members who are interested in quality improvement.
American Society of Transportation & Logistics
A professional organization in the field of logistics.
American Trucking Associations
A motor carrier industry association composed of sub-conferences representing various motor carrier industry sectors.
American Waterway Operators
A domestic water carrier industry association representing barge operators on inland waterways.
The National Railroad Passenger Corporation, a federally created corporation that operates most of the United States' intercity passenger rail service.
An additional import duty imposed in instances where imported goods are priced at less than the "normal" price charged in the exporter's domestic market and cause material injury to domestic industry in the importing country
Any-Quantity (AQ) rate
A rate that applies to any size shipment tendered to a carrier; no discount rate is available for large shipments.
American Petroleum Institute; also Application Programming Interface
APUs automatically shut down the main locomotive engine idle while maintaining all vital main engine systems at greatly reduced fuel consumption
See Acceptable Quality Level (AQL).
A notice from the delivering carrier to the Notify Party indicating the shipment's arrival date at a specific location (normally the destination).
A field of research seeking to understand and computerize the human thought process.
See Automated Storage/Retrieval System
See American Society for Quality.
Association of American Railroads
A railroad industry association that represents the larger U.S. railroads.
Actual time of arrival, or also known as the American Trucking Associations.
Actual time of departure
Automated Tariff Filing Information System
A label used to provide additional classification or information about a resource, activity, or cost object. Used for focusing attention and may be subjective. Examples are a characteristic, a score or grade of product or activity, or groupings of these items, and performance measures.
Manual or computerized tracing of the transactions affecting the contents or origin or a record.
In reference to freight bills, the term audit is used to determine the accuracy of freight bills.
A characteristic of modern information systems gauged by the ease with which data can be substantiated by tracing it to source documents, and the extent to which auditors can rely on pre-verified and monitored control processes.
Determining the correct transportation charges due the carrier; auditing involves checking the freight bill for errors, correct rate, and weight.
Referring to an automated identification system. This includes technology such as bar coding and radio frequency tagging (RFID).
Automated Broker Interface (ABI)
The U.S. Customs program to automate the flow of customs-related information among customs brokers, importers, and carriers.
Automated Call Distribution
A feature of large call center or "Customer Interaction Center" telephone switches that routes calls by rules, such as next-available employee, skill set, etc.
Automated Guided Vehicle System (AGVS)
A computer-controlled materials handling system consisting of small vehicles (carts) that move along a guideway.
Automated Storage/Retrieval System (AS/RS)
A high-density rack inventory storage system with unmanned vehicles automatically loading and unloading products to/from the racks.
Automatic Tire Inflation System
Automatic tire inflation systems monitor and continually adjust the level of pressurized air to tires, maintaining proper tire pressure even when the truck is moving.
Total cost, fixed plus variable, divided by total output.
See Marine Cargo Insurance
See Air Waybill