| 1D bar code�a bar code that uses a series of bars
and spaces to represent data. 1D barcodes (also called linear bar codes) are
read scanning across the width of the bars (one dimension).
2D bar code�a bar code that uses small geometric shapes to
represent data. 2D codes stack the shapes or use a matrix to allow more
information to be stored in the same space as a 1D bar code. Whereas a 1D
bar code only requires the scanner to read a single narrow band across the
bar code, a 2D bar code requires the scanner to read the code both
horizontally and vertically (two dimensions).
24/7�refers to operations that run non-stop 24 hours per day, 7
days per week.
ABC classification�stratification of inventory using a specific
activity-based driver. Examples of ABC classifications would include ABC by
velocity, ABC by units sold, ABC by dollars sold, and ABC by average
inventory investment. ABC classifications may be used to determine cycle
count frequencies, tolerance levels, and to break down accuracy
measurements.
Absolute variance�a numeric representation of a variance that
ignores whether the variance is positive or negative. A summarized variance
number or amount where positive and negative variances are not allowed to
offset each other.
Accuracy�correctness of data to reality. Inventory accuracy is the
consistency to which the data in your inventory system is in agreement with
the actual inventory in your supply chain.
Accuracy audit�a periodic verification of the accuracy of
inventory by using a sampling of inventory data and physical counts to
determine correctness. Accuracy audits can be used as a replacement for the
annual physical inventory for financial accounting purposes.
ActiveX control�a small computer program that can be plugged into
compliant applications to provide added functionality. ActiveX controls are
often used to add bar code printing functionality to applications.
ADC�automated data capture. Systems of hardware and software used
to automatically pass data used to process transactions in warehouses and
manufacturing operations. Data capture systems may consist of fixed
terminals, portable terminals and computers, radio frequency (RF) computers,
and various types of bar code scanners and RFID readers.
A-frame�a type of automated picking system. A-frames are large
machines that dispense items onto a conveyor that runs down the center of
the machine.
AGV�automated guided vehicle. Vehicles that can be programmed to
automatically drive to designated points and perform preprogrammed functions
Aisle�the physical passageway used for the travel of material
handling equipment and pedestrians. Also, the location designation of the
set of locations on either side of the physical aisle.
Allocations�refers to actual demand created by sales orders or
production orders against a specific item. The terminology and the actual
processing that controls allocations will vary from one software system to
another. Basically a standard allocation is an aggregate quantity of demand
against a specific item in a specific facility, standard allocations may be
referred to as normal allocations, soft allocations, soft commitments,
regular allocations. Standard allocations do not specify that specific units
will go to specific orders. A firm allocation is an allocation against
specific units within a facility such as an allocation against a specific
location, lot, or serial number. Firm allocations are also referred to as
specific allocations, frozen allocations, hard allocations, hard
commitments, holds, reserved inventory. Standard allocations simply show
that there is actual demand while firm allocations reserve or hold the
inventory for the specific order designated.
Annual physical inventory�a yearly count of all inventory. See
also Physical inventory.
APICS�American Production and Inventory Control Society.
www.apics.org
ASN�advanced shipment notification. Advanced shipment
notifications are used to notify a customer of a shipment. ASNs will often
include PO numbers, SKU numbers, lot numbers, quantity, pallet or container
number, and carton number. ASNs may be paper based, however electronic
notification is preferred. Advanced shipment notification systems are
usually combined with bar coded compliance labeling that allows the customer
to receive the shipment into inventory through the use of bar code scanners
and automated data collection systems.
ASQ�American Society for Quality.
www.asq.org
ASRS�automated storage and retrieval systems. A system of rows of
rack, each row has a dedicated retrieval unit that moves vertically and
horizontally along the rack picking and putting away loads. Versions include
unit-load ASRS and mini-load ASRS.
Audit�a verification of the accuracy of data.
Automatic mode�describes the manner by which people process
information and apply actions when their attention is divided while
performing repetitive tasks.
Autodiscrimination�the functionality of a bar code reader to
recognize the bar code symbology being scanned thus allowing a reader to
read several different symbologies consecutively
Available�refers to
the status of inventory as it relates to its ability to be sold or consumed.
Availability calculations are used to determine this status. Availability
calculations vary from system to system but basically subtract any current
allocations or holds on inventory from the current on-hand balance. See also
Allocations
Backflush�method for issuing (reducing on-hand quantities)
materials to a production order. In backflushing the material is issued
automatically when production is posted against an operation. The
backflushing program will use the quantity completed to calculate through
the bill of material the quantities of the components used and reduce
on-hand balances by this amount. See also Transaction by exception.
Backorder�an order that is past its required date for an item that
has inadequate inventory to fill the order.
Batch computer�portable computers that are designed to
periodically download data to a host system through a wired connection.
Batch picking�order picking method where orders are grouped into
small batches. An order picker will pick all orders within the batch in one
pass. Batch picking is usually associated with pickers with multi-tiered
picking carts moving up and down aisles picking batches of usually 4 to 12
orders, however batch picking is also very common when working with
automated material handling equipment such as carousels.
Bar code�a series of bars and spaces that are encoded to represent
characters. Bar codes are designed to be machine-readable.
Bar code font�a font that is used to create bar codes. Additional
programs are often needed to convert the bar code data into the proper
format prior to applying the bar code font.
Bar code printer�a printer capable of converting characters into a
bar code. A bar code printer can provide faster printing by allowing the
computer to send special codes to the printer designating the data to be
converted into a bar code. The printer then generates the bar code rather
than requiring the computer software to generate an image of a bar code and
send the image to the printer.
Bar code reader�any device that can convert a bar code image into
data. Common bar code readers consist of pistol-type scanners, wand
scanners, and fixed position scanners.
Bar code verifier�a device used to check the quality of a printed
bar code.
Bar code symbology�a "bar code version" consisting of a set of
specifications that determine how the bars and spaces are produced and later
converted to numbers, letters, and characters. Bar code symbologies are
broken into two primary groups: one-dimensional bar codes, and
two-dimensional bar codes.
Batch-level transactions�transactions that are executed in large
numbers through the use of a batch program. Batch-level transactions are
usually confirmation-type transactions where the system is automatically
completing a large group of transactions based on the assumption that all
tasks were completed based upon the computer's recommendations. Batch-level
transactions are only possible with directed tasks.
Benchmark�a measurement that is used for comparison purposes.
Benchmarking�the act of comparing measurement to a benchmark.
External benchmarking seeks to compare internal measurement to measurement
from an external source. Internal benchmarking seeks to compare internal
measurements to historic internal measurements.
Bin�a physical storage container such as a small corrugated or
plastic parts bin. Also used interchangeably with the term slot to designate
a single storage location.
Blind counts�describes method used in cycle counting and physical
inventories where your counters are provided with item number and location,
but no quantity information.
BOM�bill of materials. Lists materials (components or ingredients)
required to produce an item. Multilevel BOMs also show subassemblies and
their components. Other information such as scrap factors may also be
included in the BOM for use in materials planning and costing.
Brainstorming�method used to generate ideas on causes and possible
solutions to process problems. A brainstorming session usually involves a
group of people getting together and listing ideas. Analysis and commentary
on ideas is held off until after the brainstorming session has concluded.
Built-in check�a check that intrinsically exists as part of a
process.
Bulk�the classic use
of the term bulk (bulk materials, bulk inventory, bulk storage) in inventory
management and distribution refers to raw materials such as coal, iron ore,
grains, etc. that are stored or transported in large quantities. This would
include rail cars, tanker trucks, or silos full of a single material.
However, this term can also have a variety of other definitions based upon
the specific industry or facility. For example, a small-parts picking
operation may refer to a case storage area as "bulk", while a case-picking
operation may refer to the full-pallet area as the "bulk area".
Business objectives�the strategic goals of the organization.
Capacity�the capabilities of a process, machine, location, or
facility.
Carousel�type of automated material handling equipment generally
used for high volume small parts order picking operations. Horizontal
carousels are a version of the same equipment used by dry cleaners to store
and retrieve clothing; they have racks hanging from them that can be
configured to accommodate various size storage bins. Vertical Carousels
consist of a serious of horizontal trays on a vertical carousel. Vertical
carousels are frequently used in laboratories and specialty manufacturing
operations.
Carton�a corrugated box.
Case�a container (usually a corrugated box) that contains multiple
units of an item.
Catch weight�Used
primarily in the food industry for products such as seafood, meats, and
cheeses; catch weights refer to the actual weight of variable-weight items
that use weight as the sales unit of measure. Catch weights are generally
recorded during the order picking or shipping process. Systems using catch
weights must be able to correctly process sales order line items based on
the catch weights being within specific tolerances of the "order quantity".
CCD�charged coupled device. Used to describe a type of barcode
scanner that acts like a small digital camera that takes a digital image of
the barcode as opposed to the standard barcode scanner that uses a laser.
Check�any type of verification of a process or data.
Check character�characters added to a bar code to verify a correct
read of the bar code. Check characters are usually the result of a
mathematical calculation based upon the data in the bar code. Not all bar
codes contain check characters.
Check-weighing�a method that uses scales as a check to verify the
accuracy of orders or containers.
Clonable�functionality to copy programming from one device to
another.
Code 128�a linear (1D) bar code symbology commonly used in
warehouse and inventory tracking applications.
Commodity�a logical grouping of inventory based upon user-defined
characteristics. Different industries will define commodity classifications
differently. For example, in one industry they may have a classification of
"building materials" that encompasses anything that would be used to
describe all construction materials while another industry may have separate
commodity classifications for "framing lumber," "decking materials,"
"fasteners," and "concrete products."
Compliance labels�standardized label formats used by trading
partners usually containing bar codes. Compliance labels are used as
shipping labels, container/pallet labels, carton labels, piece labels. Many
bar code labeling software products now have the more common compliance
label standards set up as templates.
Components�inventory used in the manufacturing process. Though
some would categorize components as lower level manufactured discrete items,
I consider anything used in the manufacturing process a component. I use the
term synonymously with the term "raw materials." I also consider a
subassembly a component.
Compounding a sample�method used with counting scales to use a
smaller sample and then use the scale to build a larger quantity that is
then resampled to represent the final sample.
Conditional formatting�formatting of
data on reports or computer programs that changes based upon specific
criteria. Examples of conditional formatting would include printing and displaying negative quantities in
red, only printing the unit of measure if it is not "eaches," or printing an
item number in reverse text if there are special handling instructions
associated with the item. Conditional formatting is used to help focus
attention on data elements when the importance of the data element may be
different from one record to the next.
Configuration processing�software functionality that allows a
product to be defined by selecting various pre-defined options rather than
having every possible combination of options pre-defined as specific SKUs.
Placing an order for a computer and specifying hard drive, processor,
memory, graphics card, sound card, etc. would be an example of configuration
processing.
Confirmation transactions�transactions that are completed by a
simple confirmation step rather than by entering details of the transaction.
Confirmation transactions are only possible when the computer already
"knows" the details of the task. See also Transaction by exception.
Container�can be anything designed to hold (contain) materials for
storage or transport including cartons, totes, drums, bags, etc.
Containerization�using standardized containers for the storage and
transport of materials within a facility or supply chain. Materials are
ordered in multiples of the container quantity. The benefits of
containerization include reduced product damage, reduced waste (by using
reusable containers), less handling, and greater levels of inventory
accuracy by simplifying counting process.
Continuous improvement�a quality philosophy that assumes further
improvements are always possible and that processes should be continuously
reevaluated and improvements implemented.
Contract warehouse�a business that handles shipping, receiving,
and storage of products on a contract basis. Contract warehouses will
generally require a client to commit to a specific period of time (generally
in years) for the services. Contracts may or may not require clients to
purchase or subsidize storage and material handling equipment. Fees for
contract warehouses may be transaction and storage based, fixed, cost plus,
or any combination. See also Public warehouse and 3PL.
Control group�a small sample of items that are repeatedly counted
over a period of time to identify process problems.
Control policy�a documented policy that describes process
controls.
Coproduct�the term coproduct is used to describe multiple items
that are produced simultaneously during a production run. Coproducts are
often used to increase yields in cutting operations such as die cutting or
sawing when it is found that scrap can be reduced by combining
multiple-sized products in a single production run. Coproducts are also used
to reduce the frequency of machine setups required in these same types of
operations. Coproducts, also known as byproducts, are also common in process
manufacturing such as in chemical plants. Although the concept of coproducts
is fairly simple, the programming logic required to provide for planning and
processing of coproducts is very complicated.
Counting scale�a scale that converts weight information into piece
count information and vice versa.
COGS�cost of goods sold. Accounting term used to describe the
total value (cost) of products sold during a specific time period. Since
inventory is an asset, it is not expensed when it is purchased or produced,
it goes into an asset account (the inventory account). When product is sold,
the value of the product (the cost, not the sell price) is moved from the
asset account to an expense account called �cost of goods sold� or COGS.
COGS appears on the profit and loss statement and is also used for
calculating inventory turns.
Cost of errors�the costs associated with errors. Costs of errors
include both tangible and intangible costs. Tangible costs would include
costs such as transportation costs incurred by expediting materials or by
correcting shipping errors, cost of production delays and interruptions
related to inventory errors, labor costs associated with searching for lost
product, clerical costs of correcting errors, and even costs associated with
a cycle count program. Intangible costs include cost of customer
dissatisfaction and costs associated with employee frustration.
Count frequency�the number of times per year you plan on counting
an item. Count frequency is used to calculate cycle count period. See also
Cycle count period.
Count sheet�a document used in cycle counting and physical
inventories to facilitate the counting of inventory. A count sheet will
contain multiple items and locations to be counted and can be a simple
report or a live document produced by cycle counting programs.
Count tag�a document used in physical inventories to facilitate
the counting of inventory. A separate count tag is created for each
item/location combination and a unique ID number is assigned to each count
tag to facilitate data entry and verification of counts.
Cross-docking�in its purest form cross-docking is the action of
unloading materials from an incoming trailer or rail car and immediately
loading these materials in outbound trailers or rail cars thus eliminating
the need for warehousing (storage). In reality pure cross-docking is rare
outside of transportation hubs and hub-and-spoke type distribution networks.
Many "cross-docking" operations require large staging areas where inbound
materials are sorted, consolidated, and stored until the outbound shipment
is complete and ready to ship. This staging may take hours, days, or even
weeks in which case the "staging area" is essentially a "warehouse".
Cross-training�training workers in tasks outside of their normal
job responsibilities.
Cube utilization�term used in warehouse management systems. Cube
logic is often incorporated but seldom used in WMS systems because of its
tendency to treat your product as liquid (fitting a round peg in a square
hole).
Custom form�any form designed for a specific task in a specific
environment.
Cycle count�any process that verifies the correctness of inventory
quantity data by counting portions of the inventory on an ongoing basis. In
other words, any process that uses regularly scheduled counts but does not
count the entire facility's inventory in a single event.
Cycle count number�number assigned to a group of cycle counts used
to facilitate tracking and updating of transactions associated with the
group.
Cycle count period� a time period used in cycle counting programs
to calculate the next count date based upon the previous count date. Count
period is generally stated in the number of days between counts. An
understanding of whether your system uses calendar days or work days is
necessary to properly convert count frequency to count period. See also
Count frequency.
Cycle time�the time that transpires from the time a task (or
series of tasks) is initiated to the time a task is completed. For example,
from the time a shipping order is printed to the time it is loaded on the
truck and the system is updated.
Data�any type of
information that can be stored, manipulated, summarized, accessed, or used
for calculations.
Database�computer term that describes the
structured electronic storage of data. A database is the highest level of a
group of data, in most business software, all data is maintained in a single
database. A database is a collection of files (also called tables), with
each file consisting of one or more records, with each record consisting of
one or more fields.
Data elements�individual pieces of data in a database, on a
report, or on a computer screen. Individual fields in a database file such
as the item number or quantity from an inventory record are examples of data
elements.
Data element identifier�text used to describe a data element. For
example, the text that reads "PHONE NUMBER" that appears on a report used to
identify the data element that contains the customer's phone number.
Data formatting�the specific way data elements are displayed or
printed on a report or computer screen. Data formatting not only includes
the font and style (bold, italics, etc.) of the text but also the inclusion
of spaces or special characters to make the data element more readable.
Data identifier� a character or set of characters added to a bar
code to identify the type of data included in the bar code.
DataMatrix�a two-dimensional (2D) bar code symbology.
Data selection�term that describes the "filtering" of data to only
display certain records on reports or computer screens. Setting a count
program to only release counts for a specific aisle is an example of data
selection.
Data sequencing�refers to the sorting of data on reports and
computer screens. Sorting a count sheet by location is an example of data
sequencing.
Decoded scanner�scanner that has built-in logic to convert the bar
code into ASCII characters and then pass the ASCII characters to the
connected device.
Decoder�interface device that allows you to connect one or more
undecoded scanners or other devices (such as scales and credit card readers)
to a computer or terminal. Decoders are often called wedges because they
frequently use a keyboard wedge interface to connect and communicate with a
computer or terminal. The decoder will convert the scanner output into ASCII
characters and then pass this data to your computer.
Demand�The need for a specific item in a specific quantity.
Depth of field�describes the working distance of a particular
scanner from the bar code. This cannot be listed as a single range since the
depth of field is also dependant upon the density (size) of the bar code and
the reflectivity of the media on which the bar code is printed.
Directed tasks�tasks that can be completed based upon detailed
information provided by the computer system. An order picking task where the
computer details the specific item, location, and quantity to pick is an
example of a directed task. If the computer could not specify the location
and quantity forcing the worker to choose locations or change quantities, it
would not be a directed task. Directed tasks set up the opportunity for
confirmation transactions.
Direct thermal�printing method used to produce bar code labels.
Direct thermal uses a heated print head to darken areas on special thermal
activated label stock.
Discrepancy�See Variance
Discrete manufacturing�manufacturing of distinct items (items you
can easily count, touch, see) such as a pencil, a light bulb, a telephone, a
bicycle, a fuel pump, etc. Discrete as opposed to process manufacturing. See
also Process manufacturing.
Dock-to-stock�receiving method whereby materials are delivered
directly to the point of use (storage or manufacturing) skipping the normal
receipt check in process.
Document�a physical piece of paper produced by a computer system
used to execute a task, or the electronic representation of a set of data
used to execute a task.
Document-level transactions�confirmation transactions where
multiple detail-level transactions are executed by confirming the completion
of a set of tasks at the document level. For example, using the confirmation
of a shipping order to automatically complete transactions for all items
shipped on the order. Document-level transactions are only possible with
directed tasks.
Double-deep rack�pallet rack designed to allow storage of pallets
two-deep. Requires use of a double-deep reach truck to place and extract
loads.
DRP�distribution requirements planning. Software used to plan
inventory requirements in a multiple plant/warehouse environment. DRP may be
used for both distribution and manufacturing. In manufacturing DRP will work
directly with MRP. DRP may also be defined as distribution resource
planning, which also includes determining labor, equipment, and warehouse
space requirements.
Drive-in rack�racking system designed to allow a lift truck to
drive into the bay creating very high-density storage for non-stackable
loads. Useful for operations with limited SKUs and high quantities of
pallets per SKU. FIFO is difficult to maintain in drive-in racking systems.
Eaches�term used to describe a unit of measure where each
individual piece is tracked as a quantity of one in the computer system.
EDI�electronic data interchange. A method for exchanging data
between systems based on a set of standardized specifications.
Environmental factor�any characteristic of the operating
environment. Environmental factors include anything from storage methods and
product packaging to facility temperature and lighting.
EPC�electronic product code. EPC is the RFID
version of the UPC barcode. EPC is intended to be used for specific product
identification. However, EPC goes beyond UPC by not only identifying the
product as an SKU, but also providing access to additional data (via the
EPC Network) about
the origin and history of the specific units. The EPC tag itself
identifies the manufacturer, product, version, and serial number. It's
the serial number that takes EPC to the next level. This is the key to
data related to specific lots/batches as well as potentially tracking
the specific unit's history as it moves through the supply chain. This
data is stored somewhere else (the internet or other network) but a
standardized architecture allows you to access the data much like you
would access a web page (though this would be happening automatically
behind the scenes).
EPC Network�an
architecture similar to the internet designed to store and allow access to
data related to EPC. For example, detailed item information such as
description, ingredients, size, weight, cost; manufacturing information
about the specific lot such as when and where it was produced and expiration
dates; and distribution information about where it has been including
addresses, dates and times. The data could be as detailed as including
environmental factors such as temperatures during manufacturing or storage.
This data flexibility is accomplished through the use of a new computer
language called Physical Markup Language (PML)
which is essentially a variation of the more commonly known Extensible
Markup Language (XML).
ERP�enterprise resource planning. Software systems designed to
manage most or all aspects of a manufacturing or distribution enterprise (an
expanded version of MRP systems). ERP systems are usually broken down into
modules such as financials, sales, purchasing, inventory management,
manufacturing, MRP, DRP. The modules are designed to work seamlessly with
the rest of the system and should provide a consistent user interface
between them. These systems usually have extensive set up options that allow
you some flexibility in customizing their functionality to your specific
business needs.
Event-triggered counting method�any method used to determine when
to count an item that is based upon a specific event occurring. Examples of
events that could trigger a count would include inventory level dropping
below reorder point, the completion of a production run, or on-hand
inventory reaching zero.
Exception handling�the process of managing atypical events that
occur during a process. Exception handling is critical in automated
processes.
Exception report�a report that uses data selection based on a very
specific set of circumstances to identify process exceptions. Reports that
identify items with negative on-hand quantities or locations with more than
one item stored in them would be examples of exception reports.
Facility�a physical building or property used to store or
transform inventory.
Faking the count�the activity of changing a count quantity in a
cycle count program to make it match the expected quantity.
Field�a specific data element within a
record. Examples of fields that would be found in an Item Master file
would include Item Number, Item Description, Stocking Type,
and Vendor,
FIFO�first-in first-out. Describes the method of rotating
inventory to use oldest product first. Actually an accounting term used to
describe an inventory costing method. See also LIFO
File�in database terminology, files (also
known as tables) are organized (structured) groups (lists) of similar
information. Each file consists of one or more records that consist of one
or more fields. An inventory management database will consist of many files
used to store the needed data. File examples would include an Item Master
File, Purchase Order File (usually broken down into two files, a
header and a detail file), and Transaction History File.
Finished goods�inventory that is in a salable or shipable form
based upon its location within the supply chain. An item considered a
finished good in a supplying plant might be considered a component or raw
material in a receiving plant.
Fixed location storage�storage method where an item is always
stored in the same physical location.
Fixed-position scanner�stationary bar code reader that requires
the bar code to be placed in front of the reader to scan.
Floor stock�inventory that is consumed in production but is not
tracked in the perpetual inventory system. Floor stock is different from
non-stock inventory since it does actually have an SKU number and item
master record, but rather than tracking quantities in the inventory system,
the materials are expensed as they are received
Floor-to-system count� describes a method of counting inventory
where you document inventory balances found in storage and staging areas and
then compare this data with the system information
Flow rack�racking system that incorporates sections of conveyor to
allow the cartons or pallets to flow to the face of the rack. Stocking is
performed from the rear of the rack.
Focus-related errors�errors caused by a lack of attention to the
task at hand. Focus-related errors are common in repetitive tasks where
divided attention allows the worker to incorrectly execute the task.
Forced count�counting an item based upon an expected error. When
there is reason to suspect inventory of an item may be incorrect, the item
is manually added to the next cycle count.
Forecast�a forecast is an estimation of future demand. Most
forecasts use historical demand to calculate future demand. Adjustments for
seasonality and trend are often necessary.
Fork lift�See Lift truck.
Form�anything that requires a worker to write on it. A document
may also be a form. Data entry programs are also sometimes referred to as
forms.
Freezing inventory balances�in most cycle counting programs the
term "freezing" refers to copying the current on-hand inventory balance into
the cycle count file. This may also be referred to as taking a snapshot of
the inventory balance. It rarely means that the inventory is actually frozen
in a way that prevents transactions from occurring.
Gaylord�a large corrugated container usually sized to match the
length and width dimensions of a pallet. Gaylord is actually a trade name
that has become synonymous with this specific type of container.
Good count bad count�accuracy measurement method that compares the
number of good counts to the number of total counts. Tolerances are often
used to allow counts that are close but not perfect to still be categorized
as good counts.
GTAG�global tag. GTAG is an international
RFID standard that can be used for general asset tracking.
GUI�graphical user interface. Computer interface normally
associated with operating systems like Windows and Macintosh where a mouse
can be used to navigate the screen. A graphical user interface will allow
the use of graphics such as icons and buttons to execute actions and also
uses drag-and-drop to perform actions.
Hand-held scanner�a bar code reader that that is manually pointed
at a bar code to read it. Most common are the wired pistol-shaped devices
used in retail stores. Hand-held scanners can also be wireless.
Hand-held computer�any portable computer that can be operated
while holding it in one hand.
Headmount display�a wearable device that is positioned in front of
one of the user's eyes and projects a viewable image of a computer screen.
High-density storage�describes a variety of storage methods where
unit loads such as full pallets, crates, rolls, or bales are stored more
than one unit deep and/or high. Stacked bulk floor storage,
drive-in/drive-thru racking, pushback rack, flow rack, and to a lesser
extent, double-deep rack, are examples of high-density storage methods.
Host system�the primary computer system. The computer system on
which the primary database resides.
Housekeeping�the orderliness and cleanliness of work areas and
storage areas.
Human-machine interface�any point where data is communicated from
a worker to a computer or from a computer to a worker. Data entry programs,
inquire programs, reports, documents, LED displays, and voice commands are
all examples of human-machine interfaces.
IF THEN ELSE�describes the most common logic used by software to
make decisions. IF THEN ELSE is used to describe a situation and then
describe what the program should do if the situation is true and what it
should do if the situation is false. For example, for your computer to tell
you when you have email, the software is programmed such that IF there is
new mail in your mailbox, THEN execute the sound file that has the "you've
got mail" message, ELSE do nothing.
IIE�Institute of Industrial Engineers.
www.iienet.org.
Incentive�any type of reward given when a specific goal is
achieved.
Inner pack�a smaller container within a container used to separate
smaller quantities of an item. Inner packs are usually smaller chipboard
boxes or poly bags used within a case to break down the larger case quantity
into smaller, easier to handle and count quantities. Also known as unit
packs.
Integration�process of making separate software and hardware
systems and devices communicate with each other.
In-transit inventory�usually refers to inventory in a multi-plant
environment that has been shipped from one plant to another. When it is
shipped, the inventory is reduced in the shipping plant and added to the
in-transit inventory. When received, the inventory is reduced from the
in-transit inventory and added to the inventory at the receiving plant.
Inventory adjustment�any transaction that increases or decreases
on-hand balances.
Inventory characteristic�any distinguishing trait that describes
the types of inventory you are handling. The physical size, the form, and
the method of unitizing are examples of inventory characteristics. More
specific examples of characteristics would be rolls of steel, liquids in
drums, or cases of small parts on pallets.
Inventory system�the software used to plan and track inventory
balances and activities.
Issue�to reduce on-hand inventory and assign it to a specific
document or process. Such as issuing raw materials to a production order or
issuing finished goods to a shipping order.
Item�any unique material or product stored or handled, or any
unique configuration of a material or product stored or handled. Item is
used synonymously with SKU.
Item master�a collection of data that describes a specific item.
Item master is also used to describe the database file that contains this
data.
Item number�the identification number assigned to an item. Also
called the part number, SKU number, or SKU.
Item numbering scheme�the format or template used for assigning
item numbers.
Item history file�a database file that contains detail records for
each inventory transaction that has occurred.
JIT�just-in-time Term usually thought of as describing inventory
arriving or being produced just in time for the shipment or next process.
Actually JIT is a process for optimizing manufacturing processes by
eliminating all process waste, including wasted steps, wasted material,
excess inventory, etc.
Kanban�used as part of a just-in-time production operation where
components and sub-assemblies are produced based upon notification of demand
from a subsequent operation. Historically, kanban has been a physical
notification such as a card (kanban cards) or even an empty hopper or tote
sent up the line to the previous operation.
Keyboard wedge interface�an interface that allows you to connect a
bar code scanner or other device between your keyboard and the computer or
terminal. Any data scanned will be sent as ASCII characters and immediately
appear on the computer screen just as though it were typed on the keyboard.
Key data element�pieces of information that are critical to the
completion of a task.
Kit�items that are made up of multiple separate parts (not
assembled).
Lane�a row of stored or stage materials. Also used to designate
the location associated with a physical lane.
Laser scanner�bar code scanner that uses a laser to read the bar
code.
Last count date�date maintained in the inventory database that
records the last date that the item/location combination was on an approved
count sheet. Last count date is used in combination with cycle count period
to calculate the next count date.
Lead-time�amount of time required for an item to be available for
use from the time it is ordered. Lead time should include purchase order
processing time, vendor processing time, in-transit time, receiving,
inspection, and any prepack times.
Lead-time demand�forecasted demand during the lead time period.
For example, if your forecasted demand is 3 units per day and your lead time
is 12 days your lead time demand would be 36 units.
License plate�a document, tag, or label used to identify a
unitized load.
LIFO�last-in first-out. In warehousing, LIFO describes the method
for using the newest inventory first (I've never seen an operation that uses
this). In accounting it's a term used to describe an inventory costing
method. See also FIFO
Lift truck�vehicles used to lift, move, stack, rack, or otherwise
manipulate loads. Material handling people use a lot of terms to describe
lift trucks, some terms describe specific types of vehicles, others are
slang terms or trade names that people often mistakenly use to describe
trucks. Terms include industrial truck, forklift, reach truck, motorized
pallet trucks, turret trucks, counterbalanced forklift, walkie, rider,
walkie rider, walkie stacker, straddle lift, side loader, order pickers,
high lift, cherry picker, Jeep, Towmotor, Yale, Crown, Hyster, Raymond,
Clark, Drexel.
Light-directed�systems that use visible lights or displays to
direct activities. See also Pick-go-light, Put-to-light.
Line item�a single detail record.
Linear bar code�See 1D bar code.
Live document�a document that can be tracked within a computer
system by a status designation.
Load�in manufacturing, describes the amount of production
scheduled against a plant or machine. In warehousing, describes the
materials being handled by a piece of equipment. In transportation,
describes the materials being transported.
Location�the place where the inventory is physically stored or
staged. Also used to describe the identification number assigned to the
specific storage slot.
Locator System�locator systems are inventory-tracking systems that
allow you to assign specific physical locations to your inventory to
facilitate greater tracking and the ability to store product randomly.
Location functionality in software can range from a simple text field
attached to an item that notes a single location, to systems that allow
multiple locations per item and track inventory quantities by location.
Warehouse management systems (WMS) take locator systems to the next level by
adding functionality to direct the movement between locations.
Logical location�location set up within a locator system that does
not exist as a specific physical location.
Lost inventory�inventory that probably still physically exists
somewhere within the facility or supply chain, but cannot be found.
Lot number�number assigned to a discrete batch of an item. Lot
numbers are usually assigned to each separate production run of an item.
Lot tracking�the process of tracking inventory by lot number
through manufacturing and distribution processes.
LTL�less-than-truckload. Transportation term that describes
shipments that are less than a trailer load in size. LTL also is used to
describe the carriers that handle these loads.
Machine counter�any device that counts output of a machine.
Machine counters may count cycles, pieces, length, volume, weight, etc.
Macro�a simple computer program that scripts a series of actions.
Macros can usually be created without writing any programming code. The
simplest way to create a macro is to record a series of keystrokes that can
then be reused later.
Manufacturing order�See Production order
Materials list�a listing of material required for a production
order. The manufacturing planning system will use the bill of material to
calculate the material requirements for a manufacturing order resulting in
the materials list. Materials lists can also be created or edited manually.
MES�manufacturing execution system. Software systems designed to
integrate with enterprise systems to enhance the shop floor control
functionality that is usually inadequate in ERP systems. MES provides for
shop floor scheduling, production and labor reporting, integration with
computerized manufacturing systems such as automatic data collection and
computerized machinery.
Memory-related errors�type of focus-related error where your
memory accesses incorrect detail information during the execution of a task.
MHMS�Material Handling Management Society.
www.mhia.org/mhms
Middleware�software designed to integrate separate software and/or
hardware systems. Middleware provides the communication between the separate
systems.
Minimum standard�a statement of the lowest acceptable level of
performance.
Modification�a change to software that requires changing or adding
to the source code.
Move ticket�a document used to move inventory within a facility.
Warehouse management systems use move tickets to direct and track material
movements. In a paperless environment the electronic version of a move
ticket is often called a task or a trip.
MRP�manufacturing resources planning. Process for determining
material, labor and machine requirements in a manufacturing environment.
MRPII (manufacturing resources planning) is the consolidation of material
requirements planning (MRP), capacity requirements planning (CRP), and
master production scheduling (MPS). MRP was originally designed for
materials planning only. When labor and machine (resources) planning were
incorporated it became known as MRPII. Today the definition of MRPII is
generally associated with MRP systems.
MRO�maintenance, repair, and operating inventory. Term used to
describe inventory used to maintain equipment as well as miscellaneous
supplies such as office and cleaning supplies.
Multi-plant�environments where multiple facilities are managed.
DRP is often used to plan inventory in multi-plant environments. See also
DRP
Negative inventory�situation where the system tracking of
inventory results in an on-hand balance that is less than zero.
Net variance�a summarized variance number or amount where positive
and negative variances are allowed to offset each other.
Next count date�date used in cycle counting programs that is
calculated by adding the cycle count period (in days) to the last count
date.
Non-stock inventory�inventory that is not tracked within your
perpetual inventory system. Non-stock inventory will not have an item-master
record or internal SKU number.
Obsolescence�the process by which inventory becomes obsolete.
Obsolete�the condition of being no longer of use due to passage of
time. Usually associated with old, outdated designs.
Omni-directional scanner�bar code scanner that can scan in several
directions negating the need to orientate the scanner with the bar code.
Open order�a live document (usually a shipping order, purchase
order or production order) that has been initiated but has not been
completed or closed in the computer system. An active order that still has
tasks associated with it that are not yet completed.
Operation�in manufacturing an operation is a step in the
manufacturing process. In more general terms, an operation is the
combination of a physical facility and the processes that occur within that
facility.
Opportunity counts�counts that are timed to take advantage of a
specific set of circumstances.
Order picking�the process of selecting and assembling inventory
for shipments or for use in production processes.
Order selector�lift truck designed specifically for manual
handling of less than pallet load quantities in racking. Man-up design has
fixed forks attached to a platform that elevates the load and the operator
to facilitate manual loading and unloading from racking.
Outside operation�a step in the manufacturing process that is
performed by an outside supplier.
Outsourcing�the act of transferring responsibilities for a process
to an outside supplier.
Overhead�indirect costs associated with facilities and management
that are applied to the costs of manufactured goods through the
manufacturing reporting process.
Pallet rack�storage racking specifically designed to store
palletized loads.
Paperless system�any system that replaces the paper-based
interface with other forms of communication such as using computer screens,
lights, or speech technology.
Pareto principle�states that a small number of causes are
responsible for a great number of effects. Also known as the 80/20 rule.
Part number�See Item number.
Parts list�See Materials list.
Past due�a status at which the tasks associated with an order are
not yet completed by the required date on the order. Usually refers to
purchase orders, production orders, or shipping orders.
PDF�portable document format. A standardized computer file format
that is used for documents that can be printed or displayed on a computer
screen. A PDF file retains all graphics, fonts, and formats of the original
document and incorporates compression to reduce the overall size of the
file.
PDF417�a two-dimensional (2D) bar code symbology.
Perpetual inventory system�an inventory system that uses
transactions to adjust on-hand balances to coincide with physical activities
that are occurring.
Physical inventory�the process of counting all inventory in a
warehouse or plant in a single event. Also called a wall-to-wall inventory.
Physical Markup
Language�a variation of the more commonly known Extensible Markup
Language (XML). Physical Markup Language (PML) is designed specifically for
the EPC Network. See also EPC Network.
Pick-and-pass�See Zone picking.
Picking accuracy�accuracy measurement associated with the order
picking process.
Pick slip�the document used to pick shipping or production orders.
Also known as a pick list.
Pick tag�a version of a pick slip in which each line item is
printed as a separate document (usually a smaller paper document or label)
Pick-to-clear�method often used in warehouse management systems
that directs picking to the locations with the smallest quantities on hand.
Pick-to-carton�pick-to-carton logic uses item dimensions/weights
to select the shipping carton prior to the order picking process. Items are
then picked directly into the shipping carton.
Pick-to-light�pick-to light systems consist of lights and LED
displays for each pick location. The system uses software to light the next
pick and display the quantity to pick.
Pick-to-trailer�order-picking method where the order picker
transports the materials directly from the pick location to the trailer
without any interim checking or staging steps.
Planned order�term used within MRP and DRP systems for system
generated planned order quantities. Planned orders only exist within the
computer system and serve multiple functions. One function is to notify the
materials/planner or buyer to produce or order materials, which is done by
converting a planned order into an purchase order, production order, or
transfer order. Another function is used by the MRP or DRP system to show
demand that is used by subsequent MRP and DRP programs to generate
additional planned orders.
PO�See Purchase order.
Point-of-use inventory�material used in production processes that
is physically stored where it is consumed.
Portable computer�any computer that can be used while being
transported. Portable computers can be hand-held devices, wearable systems,
or vehicle-mounted systems.
Postponement�a manufacturing /distribution strategy where specific
operations associated with a product are delayed until just prior to
shipping. Storing product in a generic state and then applying custom labels
or packaging before shipping is an example of postponement.
Procedure�a listing of the rules and instructions associated with
a task.
Process-correction cycle�describes a condition that exists when
processes are changed without considering the impact of the changes on other
business objectives. The result is that each correction creates additional
problems that require additional corrections.
Process manufacturing�type of manufacturing where a product is
produced or transformed through mixing, chemical reactions, etc. Examples of
process manufacturing would be refining crude oil into gasoline, extracting
copper from ore, combining materials to make paint. Process as opposed to
Discrete manufacturing. See also Discrete manufacturing.
Production order�the document used to process a production run of
an item. Also known as a job, work order, or manufacturing order, a
production order is usually made up of a production order header, a
materials list, and a routing.
Production run�the physical act of performing all tasks associated
with a production order or a group of production orders that require similar
setup and processing.
Programmable�describes the functionality of some bar code decoders
and scanners. Programming functionality may include the ability to take
different actions for different bar codes based upon data identifiers,
format the data from the barcode, and script the keyboard wedge input � and
do all of this without actually writing any "code."
Program generator�software programs that generally provide
graphical user interfaces and tools that allow a user to create a program
without having to write actual computer code. Currently these programs are
more frequently referred to as "development tools" and are usually designed
to write code for specific applications such as data collection programs for
portable computers. While a user does not need to be a programmer to use
this software, the user does need to have a higher level of technical skills
than that of most standard software users.
Public warehouse�a business that provides short or long-term
storage to a variety of businesses usually on a month-to-month basis. A
public warehouse will generally use their own equipment and staff however
agreements may be made where the client either buys or subsidizes equipment.
Public warehouse fees are usually a combination of storage fees (per pallet
or actual square footage) and transaction fees (inbound and outbound).
Public warehouses are most often used to supplement space requirements of a
private warehouse. See also Contract warehouse and 3PL.
Purchase order�document used to approve, track, and process
purchased items.
Push-back rack�racking system that incorporates a carriage or
other sliding device to allow you to feed multiple pallets into the same
location "pushing back" the previous pallet..
Putaway�the process of physically placing inventory into storage.
Putaway accuracy�the measurement of the accuracy of the putaway
process.
Put-to-light�method that uses lights to direct the placement of
materials. Most often used in batch picking to designate the tote to place
picked item into.
Quantity per�the numeric representation of the quantity of a
specific item required to make one unit of another item. Quantity per exists
on the bill of material and on the materials list associated with a
production order.
Queue�computer term referring to data that is awaiting further
processing. Also describes inventory that is staged awaiting further
processing.
Queue time�the amount of time inventory is staged prior to
processing.
Query program�computer program that allows the extracting of data
from a database. Query programs will usually have the ability to pull data
from multiple files (tables), perform calculations, apply selection criteria
(filtering) to the data, sequence (sort) the data, and summarize data for
reporting or output to a file or other program.
Quiet zone�clear area on either side of a 1D bar code required for
an accurate read of the code. Quiet zones for 2D bar codes must exist on all
four sides.
Random location storage�storage method where a product may be
stored in any location. Random storage has higher space utilization and
generally lower accuracy than fixed location storage.
Raw materials�inventory used in the manufacturing process. Though
some would categorize raw materials as very base materials in bulk form such
as carloads of ore or unitized loads of paper, plastic, or steel, I
generally consider anything used in the manufacturing process as a raw
material. I use the term synonymously with the term "components".
Reach truck�a narrow aisle (8'-10') truck designed specifically for
racked pallet storage. It consists of outriggers in front and telescoping
forks that use a hydraulic scissors type mechanism that allow you to pick up
the load and retract it over the outriggers reducing the overall truck and
load length allowing you to turn in a narrower aisle. Double-deep versions
use an extended reach mechanism that allows you to store pallets two deep in
specially designed double-deep rack. Also known as stand up reach, straddle
reach, and double-deep reach.
Receipts�the materials or transactions associated with the
receiving process.
Receiving�the process of placing materials into inventory. Also
describes the department in which receiving activities take place.
Reconciling variances�the process of evaluating and correcting
inventory variances.
Record�a unique line of information within a
file or table. For example, there would be a separate record for each item
in an Item Master file. A record will consist of one or more fields.
Recounts�additional counts that are conducted after an initial
count has resulted in a variance or when checking the accuracy of initial
counts.
Reorder point�the inventory level set to trigger an order of a
specific item. Reorder point is generally calculated as the expected usage
(demand) during the lead time plus safety stock.
Replenishment�within a warehouse, replenishment is the process of
moving inventory from secondary storage areas into fixed storage locations.
Within a supply chain or a multi-plant environment, replenishment is the
process of moving inventory between facilities to meet demand.
Replenishment accuracy�measure of the accuracy of the internal
location replenishment process.
Reverse logistics�fancy term for returns. Reverse logistics covers
activities related to returned product, returned pallets and containers, and
returned materials for disposal or recycling.
Reverse sampling�the process of using a known case quantity as the
sample for a counting scale rather than manually counting a sample.
Materials can then be removed from the case to count out the required
quantity.
RF computer�refers to the portable data collection devices that
use radio frequency to transmit data to the host system.
RFID�radio frequency identification. Refers to the technology that
uses devices attached to objects that transmit data to an RFID receiver.
These devices can be large pieces of hardware the size of a small book like
those attached to ocean containers or very small devices inserted into a
label on a package. RFID has advantages over bar codes such as the ability
to hold more data, the ability to change the stored data as processing
occurs, does not require line-of-sight to transfer data and is very
effective in harsh environments where bar code labels won't work.
RFID tag�small RFID devices attached to objects.
Root cause�the ultimate source of an effect.
Root cause analysis�the process of evaluating, assigning, and
measuring root causes.
Routing�a list of operations used in manufacturing in conjunction
with the bill of materials. While the BOM contains the material
requirements, the routing will contain the specific steps required to
produce the finished items. Each step in the routing is called an operation,
each operation generally consists of machine and labor requirements.
RTLS�real time locator system. A real time locator system uses
RFID technology to transmit the physical location of RFID tagged objects.
System requires some type of RFID tag to be attached to each object that
needs to be tracked and RF transmitters/receivers located throughout the
facility to determine the location and send information to computerized
tracking system.
Ruggedized�describes devices designed for industrial environments.
Safety stock�quantity of inventory used in inventory management
systems to allow for deviations in demand or supply.
Sales order�document used to approve, track, and process outbound
customer shipments.
Scrap�inventory that must be discarded or recycled as a result of
a manufacturing process or damage that occurs during storage or material
handling.
Screen mapping�the functionality to change the arrangement of data
fields on a computer screen. Screen mapping is frequently used in
combination with terminal emulation software to "remap" data fields from a
standard mainframe program to be used on the smaller screen of a portable
handheld device. Also known as screen scraping.
Scorecard�See weighted scorecard.
Sequence of events�the order in which the specific steps in a task
are performed.
Serial number�a unique number assigned to each discrete unit of an
item.
Serial number tracking�the process of tracking serial numbers
through manufacturing and distribution processes.
Set�item that is made up of multiple units of a single part.
Shipping�the process of removing materials from stock and
transporting them to a customer or other facility.
Shipping accuracy�the measure of the accuracy of the shipping
process.
Shipping order�document used to approve, track, and process
outbound shipments.
Shrinkage�term used to describe the undocumented loss of
inventory.
SKU�stock-keeping unit. Referring to a specific item in a specific
unit of measure Also refers to the identification number assigned to each
SKU. Used interchangeably with the terms item and item number.
Slap-and-ship�term
used to describe an approach to complying with customer requirements for
physical identification of shipped goods. Most recently, slap-an-ship has
been used to describe complying with RFID requirements (such as those from
Wal-Mart), however, it is also applicable to any compliance labeling
requirement (such as compliance bar code labels). Slap-and-ship implies you
are meeting the customer's requirement by applying the bar code labels or
RFID tags, but are not utilizing the technology internally.
Slot�a single storage location.
Slotting�describes the activities associated with optimizing
product placement in locations in a warehouse.
Smart label�a label that has an RFID tag integrated into it.
Smart shelve�as the name would imply, a
smart shelf is a shelf that has capabilities beyond just preventing the
stored product from falling on the floor. In this instance, the shelf has an
integrated RFID reader. Each unit on the shelf will have an
RFID tag, allowing the reader to track inventory levels in real time.
Smart stand�device that allows a hand-held bar code scanner to be
used as a fixed-position scanner.
Speech-based technology�also known as voice technology, is really
composed of two technologies � voice directed, which converts computer data
into audible commands, and speech recognition, which allows user voice input
to be converted into data. Portable voice systems consist of a headset with
a microphone and a wearable computer.
Staged inventory�inventory that is in a temporary storage area
awaiting further processing.
Staging location�a physical location used to temporarily store
queued inventory that is awaiting further processing.
Start character�a character placed in a bar code to designate the
beginning of the bar code.
Standard�a specific level of performance. Also a standardized set
of specifications.
Static shelving�fixed shelving units.
Stocking type�a classification used by planning and execution
systems to identify the primary stocking characteristic of the inventory.
Examples of stocking types would include classifications that distinguish
manufactured inventory, purchased inventory, direct ship inventory, or
non-stock inventory.
Stocking unit of measure�the unit of measure used to track
inventory within a facility. Stocking unit of measure is usually, but not
always, the smallest unit of measure handled.
Stop character�a character placed in a bar code to designate the
end of the bar code.
Subassembly�an item that has gone through an assembly process, but
is also used in the assembly of other items. A subassembly is also a
component.
Substitution�the replacement of an ordered item on a shipping
order or a required item on a production order with another item.
System-to-floor count�describes a method of counting inventory
where you take the system quantity information and then go to the storage
areas to verify the accuracy of the system information.
Tag count�counting method that use individual tags for each
item/location in place of a count sheet. Tags are often attached to the
inventory or locations prior to the count.
Tare weight�the weight of the container that holds the materials
you are weighing.
Task interleaving�term used in describing functionality of
warehouse management systems to mix tasks to reduce travel time. Sending a
forklift driver to put away a pallet on his way to his next pick is an
example of task interleaving.
Terminal emulation�software used on desktop and portable computers
that allows the computer to act like a terminal connected to a mainframe
system. If you have a networked desktop PC and are accessing mainframe
programs you are using terminal emulation. Terminal emulation is also a
common method used to connect portable computers (as in warehouse bar code
data collection systems) to mainframe software. See also Screen mapping
Test count�a count used to test the counting process.
Thermal transfer�common method for printing bar code labels.
Thermal transfer uses a heated print head to transfer an image from a ribbon
to the label.
3PL�third party logistics. Describes businesses that provide one
or many of a variety of logistics-related services. Types of services would
include public warehousing, contract warehousing, transportation management,
distribution management, freight consolidation.
Three-way match�an accounting practice that compares a vendor
invoice against a receipt and a purchase order.
Tolerance�an allowable variation. Tolerances are sometimes used in
accuracy measures and in decision-making processes.
TQM�total quality management. A management strategy that focuses
on continuous improvement.
Transaction by exception�any method that automates the completion
of transactions that are executed consistently with system instructions.
Only the exceptions require the manual entry of transaction details.
Transaction history file�the database file that contains a detail
record for each transaction that has changed the on-hand balance of an item.
Transfer�the movement of inventory between storage locations
within a facility or between facilities. Also describes that transaction
associated with the transfer activity.
Transfer order�document used to move inventory between facilities
in a multi-plant environment. Inventory moved between locations within a
facility will usually use a move ticket rather than a transfer order.
Unapproved check�a process check that is initiated by a worker,
but is not approved as an official check.
Undecoded scanner�a bar code scanner that requires a separate
device or software to convert the scanned image into ASCII characters.
Unit load�any configuration of materials that allows it to be
moved by material handling equipment as a single unit. While smaller
manually handled configurations could be considered unit loads, the term
generally defines larger configurations that would be moved by a lift truck
such as pallet loads, crates, bales, etc. Short for unitized load.
Unit of measure�the unit of measure describes how the quantity of
an item is tracked in your inventory system. The most common unit of measure
is "eaches," which simply means that each individual item is considered one
unit. An item that uses "cases" as the unit of measure would be tracked by
the number of cases rather than by the actual piece quantity. Other examples
of units of measure would include pallets, pounds, ounces, linear feet,
square feet, cubic feet, gallons, thousands, hundreds, pairs, dozens. See
also Unit-of-measure conversion.
Unit-of-measure conversion�a conversion ratio used whenever
multiple units-of-measure are used with the same item. For example, if you
purchased an item in cases (meaning that your purchase order stated a number
of cases rather than a number of pieces) and then stocked the item in eaches,
you would require a conversion to allow your system to calculate how many
eaches are represented by a quantity of cases. This way, when you received
the cases, your system would automatically convert the case quantity into an
each quantity.
Unit pack�See Inner pack.
User interface�See Human-machine interface.
Variance�a situation where the physical quantity does not match
the system quantity. Also describes the numeric representation of the
discrepancy.
Vehicle-mounted computer�a portable computer designed to be
mounted to a vehicle such as a forklift.
Verification count�counting method where the counters are provided
the system quantity of the item being counted.
VMI�vendor managed inventory. Phrase used to describe the process
of a supplier managing the inventory levels and purchases of the materials
he supplies. This process can be very low tech such as an office supplies
supplier or maintenance supplies supplier coming into your facility once per
week to visually check stock levels and place a re-supply order or high tech
such as an electronic component supplier having remote access to your
inventory management and MRP system and producing and automatically shipping
to meet your production schedule. Vendor managed inventory reduces internal
costs associated with planning and procuring materials and enables the
vendor to better manage his inventory through higher visibility to the
supply chain. Vendor managed inventory may be owned by the vendor or the
customer.
Voice directed�See Speech-based technology
Wall-to-wall inventory�See Physical inventory.
Wand scanner�pen-type device used to read bar codes.
Wave picking�a variation on zone picking where rather than orders
moving from one zone to the next for picking, all zones are picked at the
same time and the items are later sorted and consolidated into individual
orders. Wave picking is the quickest method for picking multi-item orders,
however, the sorting and consolidation process can be tricky. See also Batch
picking, Zone picking
Weighted scorecard�a measurement compilation method that takes
several separate measurements and weights them to come up with a single
numeric representation of the measurements.
Wearable computer�a small portable computer that can be carried on
a worker. Examples of wearable computers are computers that are worn in a
fanny pack, clipped to a belt, or worn on the wrist.
Wearable system�a system that includes a wearable computer
combined with one or more other devices such as a bar code scanner or voice
headset.
WERC�Warehouse Education and Research Council. www.werc.org
WIP�work-in-process. Generally describes inventory that is
currently being processed in an operation or inventory that has been
processed through one operation and is awaiting another operation. Is
actually a financial account that contains the dollar value of all
inventory, labor, and overhead that has been issued to production but has
not yet produced a finished product.
Wireless device�any device that can communicate with other devices
without being physically attached to them. Most wireless devices communicate
through radio frequency.
WMS�warehouse management system. Computer software designed
specifically for managing the movement and storage of materials throughout
the warehouse.
Work order�See Production order.
XML�extensible markup language. A method for exchanging data
between systems based on a set of standardized specifications. XML was
designed for communicating over the internet and is more flexible than EDI.
Zone�location designation that represents a storage area.
Zone picking�order picking method where a warehouse is divided
into several pick zones, order pickers are assigned to a specific zone and
only pick the items in that zone, orders are moved from one zone to the next
(usually on conveyor systems) as they are picked (also known as
"pick-and-pass"). See also Batch picking, Wave picking
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