| A | B |
|---|
| model inventory | a target inventory of what a business needs to keep in stock |
| vendors | businesses that will provide inventory as opposed to supplies |
| trade discounts | discounts off of the suggested retail price to wholesalers and retailers |
| cash discounts | discounts that allow buyers to deduct a percentage from the purchase amount if payment is received by a specified date |
| secured funds | a form of guaranteed payment such as a credit card, cashier's check, wire transfer or cash |
| shrinkage costs | money lost when inventory items are broken, damaged, spoiled or stolen |
| obsolescence costs | money lost when products or materials become obsolete while in inventory |
| warehousing | the operations associated with inventoried goods |
| lead time | the gap in time between placing an order and receiving the delivery |
| usage rate | the speed at which inventory is used in a given period of time |
| safety stock | the cushion of products or materials that keeps a business from running out of inventory while it's waiting for an order |
