Welcome to AHRMM's healthcare supply chain Lexicon. This database contains terms used throughout the healthcare supply chain field. Simply click on the link to access the entire definition.
AHRMM thanks Kate Vitasek and Supply Chain Visions for their contribution of certain terms to the Lexicon. Terms supplied by Supply Chain Visions are used with permission. Supply Chain Vision’s Glossary of Supply Chain Management Terms appears on the Council of Supply Chain Management Professionals website. AHRMM also acknowledges Michael B. Neely with Perimeter Solutions Group for his role in developing healthcare-specific terms.
FASee Functional Acknowledgment
FabricatorA manufacturer that turns the product of a raw materials supplier into a larger variety of products. A fabricator may turn steel rods into nuts, bolts, and twist drills, or may turn paper into bags and boxes.
FacilitiesThe physical plant, distribution centers, service centers, and related equipment.
Factory Gate PricingLike DSD in reverse, factory gate pricing (FGP) is a supply chain initiative that has been gaining popularity among retailers in England. With FGP, retailers buy goods at the suppliers' "gate" and take care of getting it to their stores or distribution centers, either with their own trucks or those of their contracted carriers.
Failure Modes Effects Analysis (FMEA)A pro-active method of predicting faults and failures so that preventive action can be taken.
Fair Market Purchase OptionAn option to purchase on leased equipment at the end of the lease term at its then fair market value. The lessor does not have the ability to retain title to the equipment if the lessee chooses to exercise the purchase option
Fair returnA level of profit that enables a carrier to realize a rate of return on investment or property value that the regulatory agencies deem acceptable for that level of risk.