| A | B |
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| inventory | refers to an amount of goods stored |
| inventory management | the process of buying and storing products for sale while controlling costs for ordering, shipping, handling, and storage. |
| just-in-time inventory system | is an arrangement in which suppliers deliver parts and raw materials just before they are needed for production |
| perpetual inventory system | system tracks the number of items in inventory on a constant basis. The system tracks all new items purchased and returned, as well as sales of current stock |
| physical inventory system | stock is visually inspected or actually counted to determine the quantity on hand |
| unit control inventory system | each item or a group of related items is referred to as a stock keeping unit (sku). |
| stock turnover | is the number of times the average inventory has been sold and replaced in a given period of time. The higher the rate, the more times the goods were sold and replaced. |
| basic stock list | is used for those staple items that should be in stock. This list specifies products that a store should always carry based upon the type of business. |
| model stock list | is used for fashionable merchandise. Fashion items change relatively rapidly; therefore, these lists are less specific than basic stock lists |
| never-out list | is used for best-selling products that make up a large percentage of sales volume |
| real time inventory system | let a company constantly track every product it sells from when it’s manufactured, or when it arrives in its warehouse, to when the customer orders it online, and to when it arrives at the buyer’s door. |
