Rack

A piece of equipment that is used to store materials off the floor. Racks will typically have shelves but may be designed to hold materials vertically, such as lengths of pipe or metal bar stock.

Racking

The activity of placing materials onto a rack may also refer to hardware that is used to build racks.

Radio Frequency Identification (RFID)

The use of radio frequency technology, including RFID tags and tag readers, is used to identify objects. These objects can include virtually anything physical, such as equipment, pallets of stock, or even individual units of product. RFID tags can be active or passive. Active tags contain a power source and emit a signal constantly. Passive tags receive power from the radio waves sent by the scanner/reader. The inherent advantages of RFID over barcode technology are: 1) the ability to be read over longer distances, 2) the elimination of the requirement for 'line of sight' readability, 3) added capacity to contain information, and 4) RFID tag data can be updated/changed.

Radio Frequency (RF)

A form of wireless communication that allows users to relay information via electromagnetic energy waves from a terminal to a base station, which is linked in turn to a host computer. The terminals can be placed at a fixed station, mounted on a forklift truck, or carried in the worker's hand. The base station contains a transmitter and receiver for communication with the terminals. 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 combined with a barcode system for identifying inventory items, a radio-frequency system can relay data instantly, thus updating inventory records in so-called 'real time.

Ramp Rate

A statement that quantifies how quickly you grow or expand an operation is called a growth trajectory. It can refer to sales, profits, or margins.

Random-Location Storage

An inventory management technique where items are allowed to occupy multiple locations, which are assigned dynamically based on size and weight at the time of put away, is scheduled. Also, see Fixed-Location Storage.

Rate-Based Scheduling

A method used to create a production schedule that is based on the work center capacity or usage rate for a specified period (shift, date, week, or other timeframe), and not by individual order or item.

Rate Basis Number

The distance between two rate basis points.

Rate Basis Point

The major shipping point in a local area is considered to be the rate basis point for all points in the local area.

Rate Bureau

A group of carriers that get together to establish joint rates, divide joint revenues, claim liabilities, and publish tariffs. Rate bureaus have published single-line rates, which were prohibited in 1984.

Rationalization Exercise

Any activity that is intended to reduce the population of a specific element should be considered. This can be applied to SKU count, supplier lists, commodity designations, and so on.

Rationing

A technique of allocating available stocks of products among requesting customers is typically used when demand exceeds anticipated availability. Various formulas or strategies may be employed based on customer relationships, urgency, and price.

Raw Materials (RM)

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

RDT&E

Research, Development, Test, and Evaluation.

RDTs

RF Remote Data Terminals

REACH

Registration, Evaluation, Authorization, and Restriction of Chemical Substances.

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).

Reasonable Rate

A rate that is high enough to cover the carrier's costs but not too high to enable the carrier to realize monopolistic profits.

Recapture Clause

A provision of the 1920 Transportation Act provided for self-help financing for railroads. Railroads that earned more than the prescribed return contributed one-half of the excess to the fund from which the ICC made loans to less profitable railroads. The Recapture Clause was repealed in 1933.

Receiving

The function of taking physical receipt of materials and performing an initial inspection of the incoming shipment for damage and validation with respect to the purchase order quantity typically includes some initial data recording, but not quality assurance or stocking.

Receiving Dock

The distribution center is the location where the actual physical receipt of the purchased material from the carrier occurs.

Recency, Frequency, Monetary (RFM)

A method for segmenting or rating customers based on how recently they made a purchase, how frequently they make purchases, and the monetary value of their purchases.

Reconsignment

A carrier service that allows for changing the destination and/or consignee after the shipment has reached its originally billed destination, and paying the through rate from origin to final destination.

Redistribution

A trend in the foodservice distribution business is where a large 'redistributor', such as SYSCO or Dot Foods, will purchase truckload quantities from food manufacturers and warehouse the products. Individual smaller distributors can then purchase products from multiple manufacturers through the redistributor and fill up an entire truck to save on shipping costs.

Reed-Bulwinkle Act

Legalized joint rate-making by common carriers through rate bureaus; extended antitrust immunity to carriers participating in a rate bureau.

Reefer

A term used for refrigerated vehicles.

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 are designed to keep perishables refrigerated.

Regeneration MRP

A technique in MRP systems, where the master production schedule is completely re-planned through all bills of material, new and existing requirements are fully recalculated.

Regional Carrier

A for-hire air carrier, usually certified, that has annual operating revenues of less than $74 million. The carrier usually operates within a particular region of the country.

Registration, Evaluation, Authorization, and Restriction of Chemical Substances (REACH)

An EU regulation that addresses the production and use of chemical substances and their potential to harm the environment and human health.

Regular-route carrier

A motor carrier that is authorized to provide services over designated routes.

Relay Terminal

A motor carrier terminal is designed to facilitate the substitution of one driver for another who has driven the maximum hours permitted.

Released-Value Rates

Rates are based upon the value of the shipment. The maximum carrier liability for damage is less than the full value, and in return, the carrier offers a lower rate.

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 such as material movement and line changeovers.

Reliability

The ability of a system to perform as designated in an operational environment over time without failures is known as reliability. A common performance metric for reliability is Mean Time Between Failures. Another carrier selection criterion is to consider the variation in carrier transit time and the consistency of the provided transit time.

Remanufacturing / Refurbishing

Refers to the rework performed on returned items to make the items saleable. Note that products made available for sale in this manner must be appropriately labeled as such.

Reorder Point

A predetermined inventory level that triggers the need to place an order, this minimum level provides inventory to meet anticipated demand during the time it takes to receive the order.

Reparation

The ICC could require railroads to repay users the difference between the rate charged and the maximum rate permitted when the ICC finds the rate to be unreasonable or too high.

Re-plan Cycle

Time between the initial creation of a regenerated forecast and the time its impact is incorporated into the Master Production Schedule of the end-product manufacturing facility (an element of Total Supply Chain Response Time).

Replenishment

The process of moving or resupplying inventory from a reserve (or upstream) storage location to a primary (or downstream) storage or picking location, or to another mode of storage in which picking is performed.

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 providing information about a company's needs and requirements, this document solicits proposals from potential suppliers. For example, a computer manufacturer may use an RFP to solicit proposals from suppliers of third-party logistics service providers.

Request for Quote (RFQ)

A formal document requesting vendor responses with pricing and availability of products, Request for Quotations (RFQs) are typically solicited from a broad group of suppliers. From this broad group, a narrower selection will be made and asked to provide a more detailed Request for Proposal.

Research, Development, Test and Evaluation (RDT&E)

A service-specific account to fund PBL programs.

Resellers

A company or individual that purchases goods or services with the intention of reselling them, rather than consuming or using them, is referred to as a reseller. This category includes distributors and retailers, generally.

Resource Driver

In cost accounting, the best single quantitative measure of the frequency and intensity of demands placed on a resource by other resources, activities, or cost objects is known as the activity driver. It is used to assign resource costs to activities, cost objects, or other resources.

Resources

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