Logistics Terminology

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LogisticsWorld Guide to Selected Logistics Terminology

• Acquisition - the process through which resources are obtained to meet determined requirements: methods include purchase, rent, lease, or borrow.

• Black Box - any removable and replaceable unit in a system. (Usually refers to an electronic device.)

• Conservation - the process through which systems, equipment and resources are maintained, improved, or replaced: conservation encompasses storage, maintenance, salvage, protection, reclamation, and preparation or modification for reuse.

• Cradle-to-Grave - logistics planning, design, and support which takes in to account logistics support throughout the entire system life cycle.

• Depot Maintenance - activities extending beyond the capabilities of the organizational or intermediate levels. Depot maintenance tasks include overhaul, repair, major modification, and technical assistance.

• Distribution - the process of moving the people, resources, and services to where they are needed or will be used. Distribution involves transporting, storage, issue, disposal and reuse.

• Distribution Logistics - the concept of viewing business processes of sales forecasting, purchasing, manufacturing, inventorying, shipping, and receiving as a single system.

• Economic Order Quantity (EOQ) - order placement and quantity based on yearly (D) demand, (S) setup cost, and inventory (H) holding cost. Economic order quantity equals the square root of 2DS divided by H. (M. Cox)

• Fully Mission Capable (FMC) - a system in which all supporting subsystems are fully functional. (M. Cox)

• General Maintenance (GM) - routine or scheduled maintenance and handling not involving in-depth disassembly or movement.

• General Systems Theory (GST) - the shared fundamental characteristics found in all mechanical, biological, and social systems.

• In-Transit Visibility (ITV) - an information system which tells shippers, carriers, and consignees at any time where and when shipments are picked up, present location, and where and when shipments will be delivered.

• Information System (IS) - a system of hardware, software, people, and policies for the purpose of sharing data and information.

• Intermediate Maintenance (IM) - sometimes called "field" maintenance, includes activities requiring the use of specialized equipment or shops and greater specialization of skills. Intermediate maintenance includes inspection, calibration, adjustment, bench testing, and rebuild.

• Just-in-Time (JIT) - order placement and delivery that is synchronized with production schedules to reduce or minimize inventory costs. (M. Cox)

• Lean Logistics (LL, L2)- logistics systems which use the most direct and efficient means to supply, transport, distribute, maintain, and repair resources. (M. Cox)

• Life Cycle - the phases of a product or system: need determination, system planning, research, design, production or construction, system evaluation, use and support, and phase out, disposal, or reuse.

• Logistics - Logistics is defined as a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today's business environment. (Logistix Partners Oy, Helsinki, FI, 1996)

• Logistics - (military definition) The science of planning and carrying out the movement and maintenance of forces.... those aspects of military operations that deal with the design and development, acquisition, storage, movement, distribution, maintenance, evacuation and disposition of material; movement, evacuation, and hospitalization of personnel; acquisition of construction, maintenance, operation and disposition of facilities; and acquisition of furnishing of services. (JCS Pub 1-02 excerpt)

• Logistics - The "practical art of moving armies." (General Antoine Henri Jomini)

• Logistics Functions - planning, procurement, transportation, supply, and maintenance.

• Logistics Planning - the process of evaluating requirements, ensuring adequate logistics support of these requirements, and identifying any limiting factors in logistics support.

• Logistics Processes - requirements determination, acquisition, distribution, and conservation.

• Lust-to-Dust - similar to "Cradle-to-Grave" but also includes the logistics considerations during the initial planning phase, prior to the acquisition process. Term used in the Canadian Forces. (Captain A.T. Bard)

• Maintenance - the process of keeping equipment in a useable condition or returning it to that condition when it fails. Maintenance involves either preventive maintenance, corrective maintenance, or modifications.

• Manufacturing Support - the process of planning, scheduling and supporting manufacturing operations.

• Military Logistics - the system established to create and sustain military capability.

• Not Mission Capable (NMC) - a system in which several supporting subsystems are not functioning properly, or a few key systems are not functioning at acceptable levels. Also, a system in which a single critical system is not functioning. (M. Cox)

• Organizational Maintenance (OM) - generally limited to the routine but vital activities of inspecting, servicing, cleaning, and adjusting. Organizational maintenance activities usually do not require highly specialized skills or equipment.

• Physical Distribution - the process of providing logistics services to customers.

• Price Minimization - the procurement objective of seeking the lowest possible cost for goods and services.

• Principles of Logistics - responsiveness, simplicity, flexibility, economy, attainability, sustainability, and survivability.

• Procurement - the process of obtaining goods, services or facilities from suppliers in the correct qualtities and quality. (M. Cox)

• Provisioning - the process of ensuring that the correct materials and equipment are correctly scheduled to be on hand or in place, in the correct quantities when they are needed. (M. Cox)

• Purchasing - the process of obtaining goods and services from outside sources.

• Reclamation - the collection and disposal of excess material.

• Repair Parts Visibility - the data made available from information systems designed to provide the status of repair parts while in maintenance, and during transit or storage to and from a repair facility. (M. Cox)

• Requirements Determination - determining what is needed, when it is needed, where it is needed, how much is needed, of what quality, and obtaining insight into why it is needed and how it will be used. (M. Cox)

• Retail Supply - (military definition) the immediate support of mission units.

• Supply - the collection of resources based upon requirements, storage and protection of the resources, and the issue of resourcs to users. Supply is either wholesale or retail, and includes the processes of provisioning, distribution, and reclamation.

• Transportation - the movement of goods, supplies, equipment or people by road, water, air, rail, or pipeline.

• Wholesale Supply - generally refers to mass acquisition and centralized storage.

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