Distribution On Demand (DOD)
The order fulfillment state a distribution operation achieves when it can respond, closest to real time, to changes in demand while shipping 100 percent customer compliant orders at the least cost.

Distribution Planning
The planning activities associated with transportation, warehousing, inventory levels, materials handling, order administration, site and location planning, industrial packaging, data processing, and communications networks to support distribution.

Distribution Requirements Planning (DRP)
A system of determining demands for inventory at distribution centers and consolidating demand information in reverse as input to the production and materials system.

Distribution Resource Planning (DRP II)
The extension of distribution requirements planning into the planning of the key resources contained in a distribution system: warehouse space, workforce, money, trucks, freight cars, etc.

Distribution warehouse
A warehouse that stores finished goods and from which customer orders are assembled.

Dock-to-Stock A program by which specific quality and packaging requirements are met before the product is released. Pre-qualified product is shipped directly into the customer's inventory. Dock-to-stock eliminates the costly handling of components, specifically in receiving and inspection and enables product to move directly into production.

Dock receipt
A receipt that indicates an export shipment has been delivered to a steamship company by a domestic carrier.

Domestic trunk line carrier
An air carrier classification for carriers that operate between major population centers. These carriers are now classified as major carriers.

Dormant route
A route over which a carrier failed to provide service 5 days a week for 13 weeks out of a 26-week period.

Double bottoms
A motor carrier operation involving two trailers being pulled by one tractor.

Double Order Point System A distribution inventory management system that has two order points. The smallest equals the original order point, which covers demand during replenishment lead time. The second order point is the sum of the first order point plus normal usage during manufacturing lead time. It enables warehouses to forewarn manufacturing of future replenishment orders.

Downstream
Referring to the demand side of the supply chain. One or more companies or individuals who participate in the flow of goods and services moving from the manufacturer to the final user or consumer. Opposite of Upstream.

Drop Ship
To take the title of the product but not actually handle, stock, or deliver it, e.g., to have one supplier ship directly to another or to have a supplier ship directly to the buyer’s customer.

Dual operation
A motor carrier that has both common and contract carrier operating authority.

Dual rate system
An international water carrier pricing system where a shipper signing an exclusive use agreement with the conference pays a lower rate (10% to %15) than non-signing shippers for an identical shipment.

Dumping
Selling goods below costs in selected markets.

Dunnage
The packing material used to protect a product from damage during transport.

Durable Goods
Generally, any goods whose continuous serviceability is likely to exceed three years (e.g., trucks, furniture).

Dynamic Lot Sizing
Any lot-sizing technique that creates an order quantity subject to continuous re-computation.