Glossary

Common inventory management terms and what they mean.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


B

Back Order

Represents items on a sales order that have not been picked.

Bar Code

Print medium we use for scanning data into our system.

Bar Code Scanner

This is a hardware component that connects to a PC and is used for scanning bar codes printed on pick lists, packing lists, and receivers.

Billing

Billing is used in outgoing orders to invoice the customer for the parts provided plus any additional charges such as tax or freight costs.


C

Carrying Costs

Represents items on a sales order that have not been picked.

Consignment Inventory

Print medium we use for scanning data into our system.

Cost

The financial impact associated with purchasing new stock, maintaining old stock, or disposing of stock past its shelf life.

Cost of Goods Sold

The total value (cost) of products sold during a specific period of time.

Customer Managed Inventory

Clear Spider allows the customer to manage specific inventory and request re-supply from their supplier based upon predetermined re-supply parameters. The Customer manages the suppliers’ parts and provides visibility to the supplier so the supplier can issue the required inventory to the required stock location(s) at the right time.

Cycle Count

This is a periodic inventory counting function.


D

Display Criteria

Set of functions used for displaying data in the required manner.


E

Export

The process of taking data out of Inventory Manager for use by an external system.


F

FIFO (First-in First-out)

The process of taking data out of Inventory Manager for use by an external system.

Fixed Location

A specific place in the warehouse where this part will be stored. This field value is for descriptive purposes only.

Forecast

A number that indicates an estimate of the number of items that will be consumed each month. This value is for documentation purposes only.


H

Handheld

Represents a portable device used to perform warehouse operations like picking, shipping, receiving, etc.


I

Inbound

Direction of product flowing into the warehouse.

Inbound Lead Time

The amount of time in days that it takes to have this particular part delivered from the supplier.

Inspection

It is used either on an incoming purchase order or a production order. It will cause the user to report the results of inspection of the parts received by requesting the number of parts accepted and the number of parts rejected.

Inventory

Represents the items in stock. It can also be used to imply the physical counting process.

IP Address

Network address for a given handheld or workstation PC’s internet connection.

Items

Representation for product or part number.

Issue

It is used in production orders to supply the production order with the needed material to produce the end product.


J

Just-in-time

Inventory arriving or being produced just in time for the shipment or next process (Strategy to eliminate all process waste).


K

Kanban

Replenishment system where a replenishment is triggered by emptying a container, and the empty container is sent up the line to the previous operation or supplier to be refilled.

Kitting

Process in which individually separate but related items are grouped, packaged, and supplied together as one unit.


L

LILO (Last-in Last-out)

A method for organizing and manipulating a data buffer, where the newest entry is processed first.

Level

A term that refers to the physical positioning of a shelf location.

License

A legal document that defines the conditions for use of the software.

Line Item

Representation for product or part number. Same as Item.

Location

Precise place where a product is stored.

Lot Size

Lot size represents the quantity of an item you order for delivery on a specific date, or manufacture in a single production run.


M

Max

Short for maximum. This is a field in the database that allows you to set the maximum quantity of stocking inventory.

Maximum Inventory

The maximum number of units that the company desires to maintain in inventory at any point in time. This parameter is considered if the Reordering Policy is set to Maximum and will be used in conjunction with other inventory parameters to calculate a reorder quantity to bring the inventory level back to the maximum quantity.

Maximum Order Qty

The maximum number of parts that will be ordered on a given replenishment order when the REPLAN function of the system generates a replenishment order.

Min

Short for minimum. This is a field in the database that allows you to set the minimum quantity of stocking inventory.

Minimum Inventory

The minimum number of units that the company desires to maintain in inventory at any point of time. It is necessary that inventory should not go below this level. This parameter is considered if the Reordering Policy is set to Maximum and will be used in conjunction with other inventory parameters to display graphs of the status of the inventory for the item.

Minimum Order Qty

The quantity of parts that should be ordered.

Move

The process of transferring items between locations.


N

Netting

The process of adjusting gross requirements by current on-hand, safety stock, and inbound quantities.


O

Order Cycle

The length of time an ordered quantity should last.

Order Multiple

A factor used in the REPLAN function to generate replenishment orders. The Order Multiple value will cause the quantity to be ordered to round up to the next multiple. For example, if the order multiple is 10 and the quantity needed is 75, the REPLAN function will order 80 units of the part; if the order multiple was 6 and the quantity needed is 75, then the REPLAN function would order 78 units.

Outbound

Direction of product flow leaving the warehouse.
Outbound Lead Time : The amount of time in days for your company to deliver this part to a customer.

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.


P

Package Tracking Number

This field is an open text field that can carry any value that the user wishes. For an inbound order, it could carry the tracking number issued by the shipping company.

Packing List

A document that is printed after the picking process is completed.

Part Number

Representation of a product numerical form, similar to Item Number.

Part Number References

The system has the ability to reference item data using alternate part numbers which are added and maintained via the Customer References and Vendor References sections of the Create Item and Edit Item screens.

Pick List

A document that is printed for use during the picking process.

Picking

The process of filling a sales order.

PO Cost

Cost field used in the purchasing module of the software.

Portable

Represents a mobile device used to perform warehouse operations like picking, shipping, receiving, etc same as a handheld.

Preferences

This is a module in the software that is used to define user choice.

Print Pack List

This step is used with an outgoing order and can be used to print a packing list that will go with the shipment. The inventory numbers here can vary from the pick list since the number of parts actually picked could vary from the quantity requested.

Print Pick List

This step is used with an outgoing order and when executed will cause a Pick List, showing all of the parts and associated quantities required to fill the order. Inventory levels at this point remain the same.

Purchase Order

This is the function that allows the user to order products for receipt in the warehouse.

Purchase Order Number

Key in the Purchase Order number of the purchase order issued by your Purchasing Department.


Q

Qty

Numeric field used throughout the software to represent quantity.

QuickBooks

Popular accounting software package supported in Inventory System.


R

Radio-Frequency Identification (RFID)

The wireless use of electromagnetic fields to transfer data, automatically identifying and tracking tags attached to objects. These tags contain electronically stored information.

Receipt

Process of receiving products into the location/warehouse.

Receiving

Receiving is typically used in an incoming order. This step reports the number of items being received from the incoming order and allows the system to create a backorder for missing parts.

Reorder Quantity

The number of parts that are ordered on a replenishment order, created by the Replan function, when the reordering policy of Reorder Point is used.

Replenishment

Replenishment is the process of moving inventory between facilities or from suppliers to meet demand.

Return Material Authorization (RMA)

Clear Spider allows the customer to return the damaged or defective goods to supplier to have the products repaired or replaced and reshipped.


S

Safety Lead Time

Adding some additional time to your lead time as part of your ordering calculations.

Safety Stock

Safety stock provides protection against running out of stock during the time it takes to replenish inventory. It allows the company to maintain customer service levels while at the same time maintaining the minimum level of inventory. The value set here will affect the graphical display of on-hand and available inventory for a part. If these levels are at or below the defined safety stock, the graphical display will be coloured red to indicate a potential serious inventory issue or stock-out.

Sales Order

This term is used to represent the software module where customer orders are entered. It is also used to represent the printed version of that customer’s order.

Scheduling

Scheduling is used in both an incoming and an outgoing order. Once the order has been acknowledged, the order can be reviewed for delivery factors such as dates and quantities can be modified as required.

Search Parameters

Set of fields used to search the required data.

Serial Number

Value generated by the software during the registration process.

Setup Costs

The costs associated with initiating a production run (labour, machine time, etc.).

Setup Time

The time it takes to prepare (equipment and materials) for a production run.

Shelf Life

Shelf Life is that length of time given to tagged items before they are considered unsuitable for sale or consumption.

Ship To

Field in the database that represents an alternate shipping address for a customer.

Shipping

Process performed after the picking function that signifies that the product has left the facility.

Shipping Agent

This field is the code representing the company that is actually delivering the parts to you. This is a pre-defined list of agents and can be filled in by clicking on the down arrow and selecting the appropriate value from the drop-down list.

Status

This term is used in the software to determine the condition in an item.


T

Transfers

This term refers to a move function between warehouses or facilities.


U

Unit Cost

This is the cost per unit of inventory to your company MSRP – Manufacturer’s Suggested Retail Price.

Unit Price

This is the default price used when the item is sold to a customer and the invoice is created.

UOM

Unit of Measure.

Username

User name needed to log in to the software.


V

Vendor

Represents your procurement source for products.

Vendor Managed Inventory (VMI)

Clear Spider allows suppliers to manage inventory and re-supply for their customers. Customers relinquish the workload of managing suppliers’ parts in exchange for providing visibility into their inventory levels and requirements.


W

Warehouse

Term used in the software to represent the physical location of the building.

Worksheet

Refers to the document listing of items used in the cycle counting activity.

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