Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
|
Cycle Stock
|
inventory for which the level goes up and down due to the sales and replenishment process
|
|
|
Base Stock
|
inventory for which the level goes up and down due to the sales and replenishment process
|
|
|
Backup Stock
|
stock carried as a cushion if sales exceed predictions
|
|
|
safety stock
|
stock carried as a cushion if sales exceed predictions
|
|
|
Buffer Stock
|
stock carried as a cushion if sales exceed predictions
|
|
|
Lead time
|
time between when a need is recognized to when the merchandise arrives
|
|
|
Order Point
|
amount of inventory you can't go below before the restock arrives
|
|
|
review time
|
max time between reviews at the SKU level
|
|
|
shrinkage
|
difference between recorded inventory and actual inventory
|
|
|
stock-to-sales ratio
|
amount of inventory on hand at the beginning of the month to support the sales forecast. its always in units of months.
|
|
|
Open-to-buy
|
keeps track of inventory in real time
|
|
|
sell-through analysis
|
compares actual and planned sales to determine markdowns/ reorders
|
|
|
markdown money
|
money vendors pay to retailers to cover losses due to markdowns
|
|
|
ABC Analysis:
|
breaks down individual SKUs by sales
A's: 5% of items, 70% of sales B's: 10% of items, 20% of sales C's 65% of items, 10% of sales D's: 20% of items, no sales |
|
|
Three things that staple merchandise buying systems do:
|
1) monitors SKU sales
2) Forecasts future SKU demand 3) creates the rules for restocking |
|
|
Things on an inventory management report: (7)
|
1) sales velocity/speed
2) sales forecast 3) available inventory 4) amount on order that hasn't shipped yet 5) total product availability 6) how quickly inventory turns over 7) order quantity at SKU level |
