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INCOTERMS
INCOTERMS are international rules for
the interpretation of terms used in foreign trade contracts,
recognised worldwide
Indefinite Delivery Contracts
Broadly ,there are three types of
indefinite delivery or term type contracts viz. Indefinite
quantity indefinite delivery contracts, indefinite quantity
definite delivery contracts and requirements contracts
Indemnification
This clause , also known as "hold
harmless", "defend" or "indemnify" is used to protect a
purchaser or supplier from loss or damage. The
words "hold harmless" and "indemnify" refer to getting
reimbursed for penalties or liabilities incurred by one party
because of another's action and pertain to monetary or
financial loss.
The word "defend" imposes an obligation on one contracting
party to defend the other in a legal action and to incur the
cost of such action. These clauses are used in Purchase Orders
Independent Demand
Demand not directly related to
the demand for other items or end items produced by
the organisation
Inspection
It refers to checking
the quality of products and services to determine whether they
meet the specifications. Usually, purchaser has the right to
do inspection before accepting the materials
In-transit Inventory
Material moving between two or more
locations, usually separated geographically; for example,
finished goods being shipped from a plant to a distribution
center. In-transit inventory is an easily overlooked component
of total supply chain availability
Igloos
Pallets and containers used in air
transportation; the igloo shape is designed to fit the
internal wall contours of a narrow body airplane.
Import
Movement of products from one country into another. The
import of automobiles from Germany to the U.S. is an example.
Inbound Logistics
The movement of materials from suppliers and vendors into
production processes or storage facilities.
Integrated Logistics
A comprehensive, system-wide view of the entire supply
chain as a single process, from raw materials supply through
finished goods distribution. All functions that make up the
supply chain are managed as a single entity, rather than
managing individual functions separately.
Inter-coastal carriers
Water carriers that transport freight between East and
West Coast ports, usually by way of the Panama Canal.
Inter-corporate hauling
A private carrier hauling the goods of a subsidiary and
charging the subsidiary a fee: this is legal if the subsidiary
is wholly owned (100%) or if the private carrier has common
carrier authority.
Intermediately Positioned Warehouse
A warehouse located between customers and manufacturing
plants to provide increased customer service and reduced
distribution cost.
Intermodal Transportation
Transporting freight by using two or more transportation
modes such as by truck and rail or truck and oceangoing
vessel.
In-transit Inventory
Material moving between two or more locations, usually
separated geographically; for example, finished goods being
shipped from a plant to a distribution center. In-transit
inventory is an easily overlooked component of total supply
chain availability.
Intrinsic Forecast Method
In forecasting, a forecast based on internal factors, such
as an average of past sales.
Inventory Carrying Cost
One of the elements comprising a company's total
supply-chain management costs. These costs consist of the
following:
1.
Opportunity Cost:
The opportunity cost of holding inventory. This should be
based on your company's own cost of capital standards using
the following formula. Calculation: Cost of Capital x
Average Net Value of Inventory
2.
Shrinkage:
The costs associated with breakage, pilferage, and
deterioration of inventories. Usually pertains to the loss
of material through handling damage, theft, or neglect.
3.
Insurance and Taxes:
The cost of insuring inventories and taxes associated with
the holding of inventory.
4. Total
Obsolescence for Raw Material, WIP, and Finished Goods
Inventory:
Inventory reserves taken due to obsolescence and scrap and
includes products exceeding the shelf life, i.e. spoils and
is no good for use in its original purpose (do not include
reserves taken for Field Service Parts).
5.
Channel Obsolescence:
Aging allowances paid to channel partners, provisions for
buy-back agreements, etc. Includes all material that goes
obsolete while in a distribution channel. Usually, a
distributor will demand a refund on material that goes bad
(shelf life) or is no longer needed because of changing
needs.
6. Field
Service Parts Obsolescence:
Reserves taken due to obsolescence and scrap. Field Service
Parts are those inventory kept at locations outside the four
walls of the manufacturing plant i.e., distribution center
or warehouse.
Inventory Control
The management of inventories,
addressing primarily the questions such as how much quantity
to hold, when to order and how much to order for an item
Inventory Management
The process of ensuring the availability of products
through inventory administration.
Inventory Planning Systems
The systems that help in strategically balancing the
inventory policy and customer service levels throughout the
supply chain.
These systems calculate time-phased order
quantities and safety stock, using selected inventory
strategies.
Some inventory planning systems conduct what-if
analysis and that compares the current inventory policy with
simulated inventory scenarios and improves the inventory ROI.
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