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glossary of transportation, logistics, supply chain, and international trade terms help.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z ABC Analysis: A classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume.

The A group represents 10 to 20% by number of items, and 50 to 70% by projected dollar volume.

The next grouping, B, represents about 20% of the items and 20% of the dollare volume.

ABC Classification: Classification of a group of items in decreasing order of annual dollar volume or other criteria.

This array is then split into three classes called A, B, and C.

Acceptance Number: In quality management, 1) A number used in acceptance sampling as a cut off at which the lot will be accepted or rejected.

For example, if x or more units are bad within the sample, the lot will be rejected.

Acceptable Sampling Plan: In quality management, a specific plan that indicates the sampling sizes and the associated acceptance or non-acceptance criteria to be used.

2) The value of the test statistic that divides all possible values into acceptance and rejection regions.

Acceptance Sampling: 1) The process of sampling a portion of goods for inspection rather than examining the entire lot.

Accuracy: In quality management, the degree of freedom from error or the degree of conformity to a standard. For example, four-significant-digit numbers are less precise than six-significant-digit numbers; however, a properly computed four-significant-digit number might be more accurate than an improperly computed six-significant-digit number. Acknowledgement: A communication by a supplier to advise a purchaser that a purchase order has been received.

It usually implies acceptance of the order by the supplier.

For example, the Registrar Accreditation Board accredits those organizations that register companies to the ISO 9000 Series Standards.

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