| A | B |
|---|
| ABC Analysis | “Concept that recognizes that because inventories are not of equal value to firm, they should not be managed in the same way |
| Complementary Products | “Inventories that are used or distributed together” |
| Cycle (base) Stock | “Inventory needed to satisfy demand during an order cycle” |
| Dead Inventory | “Product for which there is no demand” |
| Economic Order Quantity (EOQ) | “An order size that minimizes the sum of carrying and ordering costs.” |
| Fixed Order Interval System | “Inventory is replenished on a constant, set schedule and is always ordered at a spcific time; the quantity ordered varies depending on forecasted sales before the next order date |
| Fixed Order Quantity System | “Inventory is replenished with asset quantity every time it si ordered the time interval between orders may very” |
| Inventory | “Stocks of goods and materials that are maintained for many purposes” |
| Inventory Carrying (holding) costs | “The costs of holding an inventory, such as interest on investment, insurance, deterioration, and so on. |
| Inventory Flow Diagram | “Depicts the demand for, and replenishment of inventory." |
| Inventory Shrinkage | “Refers to the fact that more items are recorded entering that leaving warehousing facilities “ |
| Inventory Turnover | “The number of times an inventory is used or replaced each year” |
| Just-in-time (JIT) approach | “Seeks to Minimize inventory by reducing (if not eliminating) safety stock, as well as having the required amount of materials arrive at the production location at the exact time they are needed. |
| Nodes | “Fixed facilities, such as a plant, warehouse, or store, in a logistics system" |
| Pipeline (in-transit) stock | “Inventory that is in route between various nodes in a logistics system” |
| Reorder (trigger) point (ROP) | “The level of inventory at which a replenishment order is placed” |
| Safety (buffer) stock | “Inventory that is held in addition to cycle stock to guard against uncertainties in supply and /or lead time” |
| Speculative stock | “Inventory that is held for several reasons such as seasonal demand, projected price increases, and potential product shortages. |
| Stockout Costs | “Costs to seller when it is unable to supply an item to a customer ready to buy it” |
| Substitute Products | “Products that customers view as being able to fill the same need to want as another product.” |
| Vendor-managed inventory (VMI) | “A system in which the size and timing of replenishment orders into a retailer’s system are the manufacture’s responsibility” |
