by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
What is an Advance Shipping Notice (ASN)?Advance Ship Notice or Advance Shipping Notice (ASN) is a document that notifies the customer about a pending delivery. The notification provides all the details about the contents of a shipment of goods, such as order...
by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
What is Affreightment?A contract of affreightment is a binding agreement signed between a charterer and an ocean or water vessel carrier to secure space for shipping goods. The carrier who hires the ship is called the charterer. The owner of the ship supplies cargo...
by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
What is Abnormal Shrinkage?Inventory shrinkage, or contraction, is used to describe inventory loss. For instance, if a retailer’s inventory records report that there are 3,261 units of Product X available, but a physical count shows that only 3,248 are...
by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
What is the Book To Ship Ratio?The book to ship ratio refers to the proportion of the total orders booked for future shipment to those that have been shipped and billed by a company. The book to ship ratio measures whether demand is weak or strong and the efficiency...
by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
What are Back-To-Back Letters Of Credit?A letter of credit is often written by a bank or an institutional intermediary promising that it will be responsible for a holder’s payment to a beneficiary if the holder does not make the payment. A back-to-back letter of...
by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
What is Balance to Complete (BDC)?Balance to Complete (BDC) is the approximation of all costs and expenses spent on a job. The costs estimated in balance to complete are direct and indirect costs. Direct costs such as costs of materials, wages for labor are attributed...
