Research And Development


Revenue Tons

Rack Slot

The position occupied by a warehousing unit in the rack. The slot may be one or more units high, or one or more units deep. Rack slots may be fixed or floating. Fixed slots are usually located at the first and second level. Using modern stock picking lift trucks, all slots can be fixed slots. The advantage of the stock picker is that you can substitute moving up and down for travel distance, a fact that is often overlooked in evaluating stock picking trucks.

Rack Unit Clearance

Space allowed for handling clearance between warehousing units stored on a shelf in a shelf rack, between the warehousing unit and the up rights or on either side of the warehousing unit and the uprights in a drive-in or drive-through rack.


A function performed by a rack-jobber, a full-function intermediary who performs all regular warehousing functions and some retail functions, typically stocking a display rack. Also a definition that is applied to the hardware which is used to build racks.


Radio Direction and Range

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 bar code 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.


Location for loading and unloading containers at railroad terminal.

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

A storage technique in which parts are placed in any space that is empty when they arrive at the storeroom. Although this random method requires the use of a locator file to identify part locations, it often requires less storage space than a fixed-location storage method. Also see: Fixed-Location Storage


Remedial Action Projects


Replenishment at Sea.

Rate Agreement

Group of carriers who discuss rates and common problems with options to file independent tariffs.

Rate basis number

The distance between two rate basis points.

Rate basis point

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

Rate bureau

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

Rate-Based Scheduling

A method for scheduling and producing based on a periodic rate, e.g., daily, weekly, or monthly. This method has traditionally been applied to high-volume and process industries. The concept has recently been applied within job shops using cellular layouts and mixed-model level schedules where the production rate is matched to the selling rate.


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.


Rubber Stern Bearing


Recreational Boating Safety.


Regional Citizens Advisory Council


Resource Conservation and Recovery Act.






Radio Direction Finder


EDIFACT Raw data reporting message


Regulatory Evaluation


An approach to improving business operations through reinventing, reevaluating, redesigning and redoing.

Re-plan Cycle

Time between the initial creation of a regenerated forecast and the time its impact is incorporated into the Master


The practice of rehandling lots already in storage in order to make room or consolidate lots. Re-warehousing is a continuous process that involves handling due to the manner in which withdrawals are made from lots. Re-warehousing also occurs in making letdowns from the upper rack tiers or stacks to facilitate making withdrawals. One of the major hidden costs in re-warehousing.


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.


EDIFACT Reinsurance bordereau message


EDIFACT Receiving advice message


EDIFACT Reinsurance calculation message

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.


EDIFACT Credit risk cover message

Received for Shipment Bill of Lading

Can be issued on the carrier’s actual receipt or taking custody of goods, if requested goods are not yet necessarily loaded on board a vessel or other conveyance. This form of bill of lading would usually be switched to an on board bill of lading or added as an on board notation upon the actual loading of goods on board a vessel or other conveyance.


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.

Receiving Report

A form used by the receiving unit to inform others of the receipt of goods purchased.


EDIFACT Reinsurance claims message


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.


EDIFACT Reinsurance core data message

Rectangular Pinwheel Course Pattern

An arrangement of warehousing units in which two pair of uni-block patterns are arranged in an unbalanced pinwheel.

Recyclable Materials

Goods that may be collected for reuse as material to manufacture new products.

Reed-Bulwinkle Act

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


A term used for refrigerated vehicles.


Refrigerated Cargo Ship or Container


  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.

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.’


EDIFACT Registration of enterprise message

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.

Register Ton

A unit of interior capacity of ships. 1 Register Ton = 100 cubic feet or 2,832 cubic metres. Also known as vessel ton.

Regular-route carrier

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


Marine shipment that is transferred to its ultimate destination port after having been shipped to an intermediate point.

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 like 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.


A carrier selection criterion that considers the variation in carrier transit time, the consistency of the transit time provided.


EDIFACT Reinsured objects list message


EDIFACT Remittance advice message


Actual rental cost for space used for warehouse and inventory control functions including office space. For owned buildings a fair market rental value or depreciation should be used.

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.

Reorder Point

The level of inventory of a given commodity at which a purchase requisition is initiated. It is a combination of expected usage during the lead time period plus a safety stock.

Reorder Quantity

The number of units, determined by logical factors, scheduled for reorder when the reorder point is reached.


see Request for Proposal


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.


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


EDIFACT Reinsurance premium message


see Request for Quote


EDIFACT Request for document message


EDIFACT Request for quote message

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.


Internal document by which a using agency requests the procurement office to initiate a purchase. May also be a form used to obtain supplies from a storeroom or warehouse.


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


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The ability of a Supply Chains to absorb shocks and continue to function even in the face of unexpected disruption.


EDIFACT Reservation message


To arrive at an appropriate disposition of a complaint or protest through administrative action.

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's used to assign resource costs to activities and cost objects, or to other resources.

Resource Planning

Allocating resources in line with SCM best practice, for example planning by investigating bottleneck activities and considering use of multi-skilled workforces to provide resource flexibility.


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.

Responsible Bidder

A bidder who is known to have the necessary capabilities and assets to perform and provide all requirements of an intended contract.

Responsive Bidder

A bidder who tenders a bid which meets all requirements of the invitation to bid.


The ability to respond in ever-shorter lead-times with the greatest possible flexibility.



Restrictive Specification

A specification that makes requirements for technical aspects of a commodity which eliminates competitive or generic bidding.


see Rich Text Format


EDIFACT Reinsurance technical account message


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.


EDIFACT Announcement for returns message


EDIFACT Instruction for returns message

Return Cargo

Cargo to be returned to original place of receipt.

Return Disposal Costs

The costs associated with disposing or recycling products that have been returned due to customer rejects, end of life, or obsolescence.

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

A number usually produced to recognize and give authorization for a defective good to be returned to a distribution center or manufacturer. The RMA number often acts as an order form for the work required in repair situations. See Return Product Authorization .

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 of Investment

(1) A calculation that determines the length of time when an asset, process, or service provides a profit or pay for said investment to a customer. (2) A financial measure of the relative return from an investment, usually expressed as a percentage of earnings produced by an asset to the amount invested in the asset.

Return on Assets (ROA)

Financial measure calculated by dividing profit by assets.

Return on Net Assets

Financial measure calculated by dividing profit by assets net of depreciation.

Return on owner's equity

The net income divided by average owner's equity.

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 Order Management Costs

The costs associated with managing Return Product Authorizations (RPA). Includes all applicable elements of the Level 2 component Order Management Cost of Total Supply Chain Management Cost. See Order Management Costs.

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.

Revenue Ton

Number of tonnes which freight is paid for per ton.

Reverse Auction

A type of auction where suppliers bid to sell products to a buyer (e.g. retailer). As bidding continues, the prices decline (opposite of a regular auction, where buyers are bidding to buy products).

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.


Reefer Container


Request For proposal


Request For Quotation


Rail Fuel Recovery Charge


Return Goods Authorization. Also See: Return Material Authorization.

Rich Media

An Internet advertising term for a Web page ad that uses advanced technology such as streaming video, downloaded applet (programs) that interact instantly with the user, and ads that change when the user’s mouse passes over it.

Rich Text Format

A method of encoding text formatting and document structure using the ASCII character set. By convention, RTF files have an .rtf filename extension.


Specialized equipment, such as cranes, heavy-duty forklifts and other tools that are necessary to move heavy and complex items.

Right of eminent domain

A concept that permits the purchase of land needed for transportation right-of-way in a court of law, used by railroads and pipelines.

Risk management

Managers are increasingly aware that they have to asses risk - both natural and artificial - and plan their actions either to avoid risk or to mitigate the effects. As supply chains become longer, there is inevitably more chance of disruption, ad logistics managers have to take a proactive approach.

Risk pooling

The process of reducing the risk among customers by pooling stock in centralized warehouses. Statistically speaking, when one customer demands a lot of a particular product, another customer demands only a little of the same product. The total inventory to maintain the customer service level is smaller, on average, with a centralized warehouse because the risk of a product stockout is pooled across all the customers.


See Raw Materials.


Return Material Authorization. Also See: Return Product Authorization.


see Return of Investment


ship Roll-on Roll-off ship


Remaining on Board


see Return on owner’s equity


see Return on investment

Roll on-roll-off

A type of ship designed to permit cargo to be driven on at origin and off at destination, used extensively for the movement of automobiles.


Referring to new store fixtures that are to be distributed throughout the country from one or more origin’s.

Rolling Average Inventory

An average inventory count or value based on the immediate past 12 month period.

Roof Fairings

An integrated air deflector mounted on the top of the cab.

Root Cause Analysis

Analytical methods to determine the core problem(s) of an organization, process, products, market, etc.


Consortium of major Information Technology, Electronic Components, Semiconductor Manufacturing, Telecommunications and Logistics companies working to create and implement industry-wide, open e-business process standards. These standards form a common e-business language, aligning processes between supply chain partners on a global basis. RosettaNet is a subsidiary of the Uniform Code Council

Route Trucks Delivery

Trucks that travel fixed routes.

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.

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.


Two or more columns beside one another.


see Return Product Authorization


EDIFACT Repair call message


Rate Restoration Surcharge


Revenue Ton


See Rich Text Format


See Return to Vendor.


A policy statement or regulation which may be issued, with appropriate authority, by an administrative government agency to interpret or clarify a statute.

Rule of eight

Before the Motor Carrier Act of 1980, contract carriers requesting authority were restricted to eight shippers under contract. The number of shippers has been deleted as a consideration for granting a contract carrier permit.

Rule of rate making

A regulatory provision directing the regulatory agencies to consider the earnings necessary for a carrier to provide adequate transportation.


Documented definitions of how work is to be performed.


Reid Vapor Pressure