Flashcards in BSCM - 8 - Purchasing and Physical Distribution Deck (23):
The charges a carrier levies for each pick-up and the weight picked-up.
PICK UP AND DELIVERY COSTS
Either a small shipment that does not fill the truck or a shipment of too little weight to qualify for a truckload quantity rate discount
LESS THAN TRUCKLOAD (LTL)
Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided.
Transportation cost comprised of elements, such as fuel, driver's wages, and wear and tear on the vehicle, that vary by distance traveled and not on weight carried.
LINE HAUL COSTS
A warehouse used for storing goods for long periods and where the prime purpose is to protect goods until they are needed.
A truck shipment that qualifies for a lower freight rate because it meets a minimum weight and/or volume.
Transportation costs associated with the paperwork and invoicing required for each shipment.
BILLING AND COLLECTING COSTS
The consolidation of fewer units into larger units for fewer handlings.
Classification of a group of items in decreasing order of annual dollar volume or other criteria.
A warehouse with finished goods and/or service items.
A warehouse with the primary purpose of moving and handling inventory rather than storage.
The paths over which carriers operate.
Transportation costs generally associated with the loading, handling, sorting, and unloading required each time a part load shipment is processed through a terminal.
TERMINAL HANDLING COSTS
Inventory located in warehouses and in transit between warehouses and the customer.
Places where carriers load and unload goods to and from vehicles and make connections between local pick-up and delivery service and line-haul service.
The distribution route, from raw materials through consumption, along which products travel.
A carrier that does not serve the general public, but provides transportation for one or a limited number of shippers under a specific contract.
The function and the responsibility for procuring materials, supplies, and services.
What are the seven steps of procurement in the PURCHASING CYCLE?
1. Receiving and analyzing purchase requisitions.
2. Selecting suppliers.
3. Determining the right price.
4. Issuing purchase orders.
5. Following Up.
6. Receiving and accepting the goods.
7. Authorizing payment.
The purchaser's authorization to formalize a purchase transaction with a supplier.
An authorization to the purchasing department to purchase specified materials in specified quantities, within a specified time.
A list of goods shipped by the supplier to the buyer stating prices, quantities, and other costs.