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processing, or combination 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).
Reasonable Rate: A rate that is high enough to cover the carrier s cost but not too high to enable the
carrier to realize monopolistic profits.
Recapture Clause: A provision of the 1920 Transportation Act that 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was repealed in 1933.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 encompassing the physical receipt of material, the inspection of the incoming
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.
Reconsignment: A carrier service that permits 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.
Reed-Bulwinkle Act: Legalized joint rate making by common carriers through rate bureaus;
extended antitrust immunity to carriers participating in a rate bureau.
Refrigerated Carriers: Truckload carriers designed to keep perishables good refrigerated. The food
industry typically uses this type of carrier.
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.
Regeneration MRP: An MRP processing approach where the master production schedule is totally
reexploded down through all bills of material, to maintain valid priorities. New requirements and
planned orders are completely recalculated or regenerated at that time.
Definitions compiled by:
Kate Vitasek
Supply Chain Visions
www.scvisions.com
Bellevue, Washington
Please note: The Council of Supply Chain Management Professionals (CSCMP) does not take responsibility for the content of these definitions,
nor does CSCMP endorse these as official definitions except as noted.
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SUPPLY CHAIN and LOGISTICS
TERMS and GLOSSARY
Updated October 2006
Regional Carrier: A for-hire air carrier, usually certificated, that has annual operating revenues of
less than $74 million; the carrier usually operates within a particular region of the country.
Regular-Route Carrier: A motor carrier that is authorized to provide service over designated routes.
Relay Terminal: A motor carrier terminal designed to facilitate the substitution of one driver for
another who has driven the maximum hours permitted.
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.
Released-Value Rates: Rates 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.
Reliability: A carrier selection criterion that considers the variation in carrier transit time; the
consistency of the transit time provided.
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 found 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 re-supplying 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, 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 a 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 the manufacturing and distribution process, such as
wholesalers and retailers.
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. It is used to
assign resource costs to activities, and cost objects, or to other resources.
Definitions compiled by:
Kate Vitasek
Supply Chain Visions
www.scvisions.com
Bellevue, Washington
Please note: The Council of Supply Chain Management Professionals (CSCMP) does not take responsibility for the content of these definitions,
nor does CSCMP endorse these as official definitions except as noted.
Page 124 of 167
SUPPLY CHAIN and LOGISTICS
TERMS and GLOSSARY
Updated October 2006
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. Also
see: Resource Driver, Capacity
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 Disposal Costs: The costs associated with disposing or recycling products that have been
returned due to End-of-Life or Obsolescence.
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