Industry Terms

Reading Time: < 1 minute Full truckload, also known as FTL, is a type of shipping where a truck carries only one specific shipment. In other words, only one shipment will be allowed on the trip. Less-than-truckload (LTL) shipping is the term used to describe the transportation of cargo that does not occupy the entire space of a truck. LTL […]

Reading Time: < 1 minute Planning for the future can be described as forecasting. The term “forecasting” refers to a technique for predicting the needs of various business aspects in the future. This could include material planning for production and distribution, a marketing budget, inventory forecasting, and many other things. 

Reading Time: < 1 minute Forecast error is the discrepancy between the value that was forecasted and the actual demand.

Reading Time: < 1 minute The tendency to predict demand that is higher or lower than reality is called forecast bias.

Reading Time: < 1 minute A fixed reorder point system is one of the methods of inventory replenishment within inventory management. A retailer usually predetermines a fixed order quantity of particular goods, and whenever those goods reach a certain quantity point or are below it, a new order for those goods is generated. 

Reading Time: < 1 minute The term “finished goods” refers to products that have finished the manufacturing process and are prepared for sale to retailers or end users. When the finished products are sold, they are referred to as merchandise.  

Reading Time: < 1 minute First-in-first-out is also known as FIFO. In this method of inventory management and valuation, the first-produced or first-bought goods are the ones that are sold, used, or disposed of first. To put it another way, merchandise is sold in the order it was received, and subsequent shipments of the same item are placed at the […]