| A | B |
|---|
| buffer stock | safety stock kept for emergencies |
| reorder level | the level of stock at which the business must order another delivery; this level depends mainly on the speed and reliability of suppliers |
| stock turnover | cost of sales divided by average stock level; the number of times stock is used and replaced within a time period |
| lead time | time taken between order being placed and delivery recieved |
| consignment stock | arrangement between customer and supplier for customer to hold stock |
| just-in-time stock control | receiving delivery just before the materials are needed |
| economic order quantity | traditional method of calculating amount to order, balancing costs of storage with economies of scale |
| destocking | running stock down to a lower level |
| opportunity cost | benefit foregone of next best alternative use of money |
| stock-out | running out of stock |
| supply chain | the line of supplies at different stages of production involved in creating the finished product |
