| 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.
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| 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.
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| Factor-rating systems | 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.
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| 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.
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| Hub-and-spoke systems | Systems that combine the idea of consolidation and that of cross-docking.
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| International logistics | All functions concerned with the movement of materials and finished goods on a global scale.
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| Logistics | The art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities.
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| Third-party logistics company | A company that manages all or part of another company’s product delivery operations.
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| Trading blocs | 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.
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| Transportation method | A special linear programming method that is useful for solving problems involving transporting products from several sources to several destinations.
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