WAREHOUSE GLOSSARY May 19, 2000 11:48 PM  By MCM staff Allocations: Actual demand created by sales orders or work orders against a specific item.

Automated storage and retrieval system, system of racks in which each row has a retrieval unit that picks and puts away items.

Order for which the merchandise is not available.

Racking system that allows for storage of very long items.

Automated equipment generally used for picking of small, high-volume parts.

Cost associated with having inventory on hand. It is primarily made up of the costs associated with the inventory investment and storage; also called holding cost.

Unloading materials from an incoming trailer and then loading them into an outbound trailer without sorting and distributing the items in the warehouse.

Process of regularly scheduled inventory counts (usually daily) that “cycle” through your inventory.

Distribution center

Process for determining inventory requirements in a multiple plant/warehouse environment.