| Centroid Method | A technique for locating single facilities that considers the existing facilities, the distances between them, and the volumes of goods to be shipped. |
| Cross-Docking | An approach used in consolidation warehouses where rather than making larger shipments, large shipments are broken down into small shipments for local delivery in an area. |
| Factor-Rating System | An approach for selecting a facility location by combining a diverse set of factors. Point scales are developed for each criterion. Each potential site is then evaluated on each criterion and the points are combined to calculate a rating for the site. |
| Free Trade Zone | A closed facility (under the supervision of government customs officials) into which foreign goods can be brought without being subject to the payment of normal import duties. |
| Hub-and-Spoke Systems | Systems that combine the idea of consolidation and that of cross-docking. |
| International Logistics | All functions concerned with the movement of materials and finished goods on a global scale. |
| Logistics | (1) In an industrial context, the art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities. (2) In a military sense (where it has greater usage), its meaning also can include the movement of personnel. |
| Third-Party Logistics Company | A company that manages all or part of another company's product delivery operations. |
| Trading Bloc | A group of countries that agree on a set of special arrangements governing the trading of goods between member countries. Companies may locate in places affected by the agreement to take advantage of new market opportunities. |
| Transportation Method | A special linear programming method that is useful for solving problems involving transporting products from several sources to several destinations. |
