| A | B |
|---|
| IFC | Internet fulfillment center |
| ABC Analysis | Dicky developed this to classify items. |
| Pareto's Law | also known as 80-20 Rule. |
| 80-20 Rule | used to separate the trivial many from the vital few. |
| Quandrant Technique | a way to measure value as a value contribution to profit. |
| Inventory visibility | The ability of an organization to "see" inventory on a real-time basis. |
| Typical inventory turns for manufacturing firms | 5-10 times. |
| Average inventory turnover for sales and retail firms | 10-20 times. |
| Cycle Stock | stock depleted through normal sale or use. |
| Safety Stock | extra stock to guard against uncertainty. |
| Seasonal stock | stock only sold during a certain season. |
| Buffer stock | another name for safety stock. |
| Inventory Risk Cost | includes costs of theft, obsolescence, and damage. |
| Inventory Service Cost | includes insurance and taxes on inventory. |
| Storage Space Cost | handling costs of moving inventory in and out, heating, and lighting. |
| Capital Cost | also known as interest or opportunity cost |
| Opportunity Cost | focuses upon what was given up in order to use money for inventory. |
| Marketing | wants well-plenished inventory. |
| Manufacturing | wants long production runs and the lowest supply costs possible. |
| Finance | wants low inventories to increase inventory turnover. |
| GDP | Gross Domestic Product |
| ROA | means "return on assets." |
| Reduction in inventory | raises ROA. |
| Inventory's ultimate challenge | balancing the supply of inventory with the demand for inventory. |
