Glossary
Your Go-To Resource for Understanding Key Logistics Terms
Enhance your knowledge and become an expert in e-commerce shipping and checkout processes with our detailed glossary. Explore the essential terminology you need to succeed in the online retail space.
Aggregate Inventory Management
The process of managing the total quantity of items held in stock across an entire supply chain, to optimize total inventory levels and costs.
Advanced Planning and Scheduling
Systems that integrate data from across the supply chain to improve the accuracy of planning and scheduling of manufacturing processes.
Average Days to Sell Inventory
This ratio calculates the average number of days it takes for a company to turn its inventory into sales. It’s also known as the inventory days formula.
Average Payment Period for Production Materials
The average time taken by a company to pay for materials used in production after receipt. It’s a measure of the payment cycle for production inputs.
ABC Analysis
A method for categorizing inventory items based on their importance, usually determined by factors such as sales or purchase volume. It helps prioritize inventory management efforts.
ABC Classification
This process ranks items in descending order of their annual dollar volume or other criteria and then splits them into three categories: A (high value), B (moderate value), and C (lower value)