Warehouse Dictionary

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R

Radio Frequency (RF)

A form of wireless communications that lets users relay information via electromagnetic energy waves from a terminal to a base station which is linked, in turn, to a host computer. The terminal can be placed at a fixed station, mounted on a forklift truck, or carried in a worker’s hand. The base station contains a transmitter and receiver for communication with the terminal. RF systems use either narrow-band or spread-spectrum transmissions. Narrow-band data transmissions move along a single limited radio frequency, while spread-spectrum transmissions move across several different frequencies. When combines with a barcode system of identifying inventory items, a radio frequency system can relay data instantly, thus updating inventory records in so-called real time.

Radio Frequency Identification (RFID)

The use of radio frequency technology such as RFID tags and tag readers to identify objects. Objects may include virtually anything physical, such as equipment, pallets of stock, or even individual units of product.

Radio Frequency Server

The RF server that interfaces between the WMS database and an RF portable; it must be opened as a separate application.

Radio Frequency Terminal

An RF enabled wireless portable data terminal that uses the WMS RF server application.

Ramp Rate

A statement which quantifies how quickly you grow or expand an operation growth trajectory. Can refer to sales, profits, or margins.

Random-Location Storage

In warehouses, a storage technique in which received material is put away in any available space rather than a specific decided logical criteria.

Rationing

The allocation of product among customers, or components among manufactured goods during periods of short supply. When price is used to allocate product, it’s allocated to those willing to pay the most.

Raw Materials (RM)

Crude or processed material that can be converted by manufacturing, processing, or a combination thereof into a new and useful product.

Real Time

The processing of data in a business application as it happens, as contrasted with storing data for input at a later time (batch processing).

Receiving

The function encompassing the physical receipt of material, the inspection of the shipment for conformance with the purchase order (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports.

Receiving Dock

Distribution center location where the actual physical receipt of the purchased material from the carrier occurs.

Reengineering

1) A fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in performance.

2) A term used to describe the process of making (usually) significant and major revisions or modifications to business processes.

3) Also called Business Process Reengineering.

Refrigerated Carriers

Truckload carriers designed to keep perishables good refrigerated. The food industry typically uses this type of carrier.

Release-to-Start Manufacturing

Average time from order release to manufacturing to the start of the production process. This cycle time may typically be required to support activities like material movement and line changeovers.

Reorder cost

cost associated with each order for materials placed with suppliers

Reorder level

the stock level at which it is time to place another order for materials (generally the lead time demand plus safety stock minus any stock on order)

Replenishment

within a warehouse or plant, 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 or from suppliers to meet demand.

Replenishment rate

the (finite) rate at which materials are added to stock

Request for Information (RFI)

A document used to solicit information about vendors, products, and services prior to a formal RFQ/RFP process.

Request for Proposal (RFP)

A document which provides information concerning needs and requirements for a manufacturer. This document is created in order to solicit proposals from potential suppliers. For example, a computer manufacturer may use an RFP to solicit proposals from suppliers of third party logistics services.

Request for Quote (RFQ)

A document used to solicit vendor responses when a product has been selected and price quotations are needed from several vendors.

Resellers

Organizations intermediate in manufacturing and distribution process such as wholesalers and retailers.

Reserve storage

Space within a warehouse that is allocated to storage of buffer inventory. Stock-keeping units (SKUs) from the reserve storage area can be rapidly relocated to replenish the inventory in the active pick area.

Resources

Economic elements applied or used in the performance of activities or to directly support cost objects. They include people, materials, supplies, equipment, technologies, and facilities.

Resources requirements planning

RRP is a capacity planning tool used to verify the ability of key resources to meet a production plan or business plan. RRP deals primarily with resources that require long-term planning, such as facilities, major equipment, capital, and workforce levels.

Retailer

A business that takes title to products and resells them to final consumers. Examples include Wal-Mart, Best Buy, and Safeway, but also include the many smaller independent stores.

Return Goods Handling

Processes involved with returning goods from the customer to the manufacturer. Products may be returned because of performance problems or simply because the customer doesn’t like the product.

Return Material Authorization or Return Merchandise Authorization (RMA)

A number usually produced to recognize and give authority for a faulty (perhaps) good to be returned to a distribution center or manufacturer. A form generally required with a warranty/return which helps the company identify the original product and the reason for the return. The RMA number often acts as an order form for the work required in repair situations, or as a reference for credit approval.

Return on Assets (ROA)

Financial measure calculated by dividing profit by assets.

Return on Sales

Financial measure calculated by dividing profit by sales.

Return Order Management Costs

The costs associated with managing Return Material Authorization (RMA). Includes all applicable elements of the Level 2 component order management cost of total supply chain management cost.

Return Product Authorization (RPA)

Also called Return Material or Goods Authorization (RMA or RGA). A form generally required with a warranty/return which helps the company identify the original product and the reason for the return. The RPA number often acts as an order form for the work required in repair situations or as a reference for credit approval.

Return to Vendor (RTV)

Material that has been rejected by the customer or the buyer’s inspection department and is awaiting shipment back to the supplier for repair or replacement.

Returns Inventory Costs

The costs associated with managing inventory returned for any of the following reasons: repair, refurbish, excess, obsolescence, end of life, ecological conformance, and demonstration. Includes all applicable elements of the Level 2 component Inventory Carrying Cost of Total Supply Chain Management Cost.

Returns Material Acquisition, Finance, Planning, and IT Costs

The costs associated with acquiring the defective products and materials for repair or refurbishing items, plus any finance, planning, and information technology costs to support return activity. Includes all applicable elements of the Level 2 components material acquisition cost (acquiring materials for repairs), supply chain-related finance and planning costs, and supply chain management cost.

Returns Processing Cost

The total cost to process repairs, refurbished, excess, obsolete, and end-of-life products, including diagnosing problems and replacing products. Includes the costs of logistics support, materials, centralized functions, troubleshooting service requests, on-site diagnosis and repair, external repair, and miscellaneous. These costs are broken into Returns Order Management, Returns Inventory Carrying, Returns Material Acquisition, Finance, Planning, IT, Disposal, and Warranty Costs.

Returns to Scale

A defining characteristic of B2B. Bigger is better. It’s what creates the “winner takes all” quality of most B2B hubs. It also places a premium on being first to market and first to achieve critical mass.

Reverse Engineering

A process whereby competitors’ products are disassembled and analyzed for evidence of the use of better processes, components, and techniques.

Reverse Logistics

A specialized segment of logistics focusing on the movement and management of products and resources after the sale and after delivery to the customer. Includes product returns for repair and/or credit.

Rewarehousing

The process of moving items to different storage locations to improve handling efficiency.

Routing or Routing Guide

(1) Process of determining how shipment will move between origin and destination. Routing information includes designation of carrier(s) involved, actual route of carrier, and estimate time en route. (2) Right of shipper to determine carriers, routes, and points for transfer shipments. (3) In manufacturing, this is the document which defines a process of steps used to manufacture and/or assemble a product.

Routing Accuracy

When specified activities conform to administrative specifications, and specified resource consumptions (both man and machine) are detailed according to administrative specifications and are within 10% of actual requirements.

Run Time

in an operation step in a routing, run time is the amount of time it takes to produce (run) a single unit. It does not include any setup time or queue time. The term can also be used to describe the accumulation of run time for multiple operations or multiple units (based on an entire production order).