| A | B |
|---|
| Cash Discounts | Discounts that allow buyers to deduct a percentage from the purchase amount of payment is received by a specified date. |
| Lead Time | The gap in time between placing an order and receiving the delivery. |
| Model Inventory | A target inventory of what a business needs to keep in stock. |
| Obsolescence Costs | Money lost when products or materials become obsolete while in inventory. |
| Safety Stock | The cushion of products or materials that keeps a business from running out of inventory while it’s waiting for an order. |
| 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. |
| Trade Discounts | Discounts off of the suggested retail price to wholesalers and retailers. |
| Usage Rate | The speed at which inventory is used in a given period of time. |
| Vendors | Businesses that will provide inventory as opposed to supplies. |
| Warehousing | The operations associated with inventoried goods. |
