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Logistic Glossary – Letter T

Tact Time

Takt Time

Tactical Planning

The process of developing a set of tactical plants (e.g., production plan, sales plan, marketing plan, and so on). Two approaches to tactical planning exist for linking tactical plans to strategic plans - production planning and sales and operations planning. Also see Sales and Operations Planning.

Taguchi Method

A concept of offline quality control methods conducted at the product and process design states in the product development cycle. This concept, expressed by Genichi Taguchi, encompasses three phases of product design, parameter design, and tolerance design. The goal is to reduce quality loss by reducing the variability of a product's characteristics during the parameter phase of product development.

Tare Weight

The weight of a substance obtained by deducting the weight of the empty container from the gross weight of the full container.

Target Costing

A target cost is calculated by subtracting the desired profit margin from an estimated or market-based price to arrive at a desired production, engineering, or marketing cost. This may not be the initial production cost, but one expected to be achieved during the mature production stage. Target costing is a method used in the analysis of product design that involves estimated a target cost, then designing the product/service to meet that cost.


A tax assessed by a government on goods entering or leaving a country. The term is also used in transportation in reference to the fees and rules applied by a carrier for its services.


The breakdown of the work in an activity into smaller elements.


The document which describes a business transaction to be performed.

Terms and Conditions (T's & C's)

All the provisions and agreements of a contract.

Theory of Constraints (TOC)

A production management theory which dictates that volume is controlled by a series of constraints related to work center capacity, component availability, finance, etc. Total throughput cannot exceed the capacity of the smallest constraint, and any inventory buffers or excess capacity at non-related work center is waste.

These costs are associated with the following processes

Third Party Logistics Provider (3PL)

A firm which provides multiple logistics services for use by customers. Preferably, these services are integrated or bundled together, by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers, and finished products from manufacturers, and finished products from manufacturers to distributors and retailers. Among the services they provide are transportation, warehousing, cross docking, inventory management, packaging, and freight forwarding.

Third Party Logistics

Outsourcing all or much of a company's logistics operations to a specialized company.

Third Party Warehousing

The outsourcing of the warehousing function by the seller of the goods.


A measure of warehousing output volume (weight, number of units). Also, the total amount of units received, plus the total amount of units shipped divided by two.


Truckload Carriers (TL)


Transportation Management System


Theory of Constraints


Trailer on a Flat Car, Piggyback (TOFC)

Total Annual Sales

Total Annual Sales are Total Product Revenue plus post-delivery revenues (e.g., maintenance and repair or equipment, system integration) royalties, sales of other services, spare parts revenue, and rental/lease revenues.

Total Average Inventory

Average normal use stock, plus average lead stock, plus safety stock.

Total Cost Analysis

A decision-making approach that considers minimization of total costs and recognizes the inter-relationship among system variables, such as transportation, warehousing, inventory, and customer service.

Total Cost Curve

1) In cost-volume-profit (break-even) analysis, the total cost curve is composed of total fixed and variable costs per unit multiplied by the number of units provided. Break-even quantity occurs where the total cost curve and total sales revenue curve intersect.2) In inventory theory, the total cost curve for an inventory item is the sum of the costs of acquiring and carrying the item.

Total Cost of Ownership (TCO)

Total cost of a computer asset throughout its life cycle, from acquisition to disposal. TCO is the combined hard and soft costs of owning networked information assets. "Hard" costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance, contracts, support contracts, disposal costs, and license fees that may or may not be up-front or charged annually. These costs are considered "hard costs" because they are tangible and easily accounted for.

Total Cumulative Manufacture Cycle Time

Average time between commencement of upstream processing and completion of final packaging for shipment operations as well as release of approval for shipment. Does not include WIP storage time.

Total Make Cycle Time

The average processing time between commencement of upstream processing and completion of all manufacturing process steps up to, but not including, packaging and labeling operations (i.e., from start of manufacturing to final formulated product ready for primary packaging.) Does not include hold or test and release times. Calculation [Average # of units in active manufacturing]/[Average daily output in units.]

Total Product Revenue

The total value of sales made to external customers plus the transfer price valuation of intra-company shipments, net of all discounts, coupons, allowances, and rebates. Includes only the intra-company revenue for product transferring out of an entity, installation services if these services are sold bundled with end products, and recognized leases to customers initiated during the same period as revenue shipments, with revenue credited at the average selling price.

Total Productive Maintenance (TPM)

Team-based maintenance process designed to maximize machine availability and performance and product quality.

Total Supply Chain Response Time

The time it takes to rebalance the entire supply chain after determining a change in market demand. Also, a measure of a supply chain's ability to change rapidly in response to marketplace changes.

Total Test Release Cycle Time

The average total test and release time for all tests, documentation reviews, and batch approval processes performed from start of manufacturing to release of final packaged product for shipment.


1) The attribute allowing the ongoing location of a shipment to be determined. 2) The registering and tracking of parts, processes, and materials used in production, by lot or serial number.


The practice of relating resources, activities, and cost objects using the drivers underlying their cost causal relationships. The purpose of tracing is to observe and understand how costs are arising in the normal course of business operations. Synonym Assignment.

Tracking and Tracing

Monitoring and recording shipment movements from origin to destination.


The tractor is the driver compartment and engine of the truck.

Trading Partner Agreement

The written contract that spells out agreed upon terms between EDI trading partners.

Trading Partner

Companies that do business with each other via EDI (e.g., send and receive business documents such as purchase orders).

Traffic Management

The management and controlling of transportation modes, carriers, and services.

Trailer Drops

When a driver drops off a full truck at a warehouse and picks up an empty one.

Trailer on a Flat Car (TOFC)

A specialized form of containerization in which motor and rail transport coordinate. Synonym Piggyback.


The part of the truck that carries the goods.

Transactional Acknowledgement

Specific transaction sets, such as the Purchase Order Acknowledgement (855), that both acknowledges receipt of an order and provides special status information, such as reschedules, price changes, back order situation, etc.

Transit Time

The total time that elapses between a shipment's pickup and delivery.


The ability to gain access to information without regard to the system's landscape or architecture. An example would be where an online customer could access a vendor's web site to place an order and receive availability information supplied by a third party outsource manufacturer or shipment information from a third party logistics provider. Also see Visibility.

Transportation Management System

A computer system designed to provide optimized transportation management in various modes along with associated activities, including managing shipping units, labor planning and building, shipment scheduling through inbound, outbound, intra-company shipments, documentation management (especially when international shipping is involved), and third party logistics management.

Transportation Mode

The method of transportation land, sea, or air shipment.

Transportation Planning Systems

The systems used in optimizing assignments from plants to distribution centers, and from distribution centers to stores. The systems combine moves to ensure the most economical means are employed.

Transportation Planning

The process of defining an integrated supply chain transportation plan and maintaining the information which characterizes total supply chain transportation requirements, and the management of transporters, both inter- and intra- company.

Trend Forecasting Models

Methods for forecasting sales data when a definite upward or downward pattern exists. Models include double exponential smoothing, regression, and triple smoothing.


General upward or downward movement of a variable over time such as demand for a product. Trends are used in forecasting to help anticipate changes in consumption over time.

Truck Stop Electrification (TSE)

Provides power outlets at truck parking spaces in which truck drivers can simply plug in, and turn off their engines, rather than idle their truck engine.

Truckload Carriers (TL)

Trucking companies which move full truckloads of freight directly from the point of origin to destination.

Truckload Lot

A truck shipment that qualifies for a lower freight rate because it meets a minimum weight and/or volume.

T's & C's

Terms and Conditions.

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