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22 Cards in this Set
- Front
- Back
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Materials that are usually purchased but have yet to enter the manufacturing process
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Raw Material Inventory
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Products or components that are no longer raw materials but have yet to become finished products
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Work-in-Progress (WIP) Inventory
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An item ready to be sold, but still an asset to the company's books
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Finished-Goods Inventory
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A method for Dividing on-hand inventory into three classifications based on annual dollar volume
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ABC Analysis
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Items that represent 15% of inventory, but 70-80% of the dollar volume
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Class A Inventory Items
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Items that represent 30% of inventory, but 15-25% of the dollar volume
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Class B Inventory Items
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Items that represent 55% of inventory, but 5% of the dollar volume
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Class C Inventory Items
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A continuing reconciliation of inventory with inventory records
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Cycle Counting
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Retail inventory that is unaccounted for between receipt and sale
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Shrinkage
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A small amount of theft
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Pilferage
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The cost to keep or carry inventory in stock
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Holding Cost
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The cost of the ordering process
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Ordering Cost
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The cost to prepare a machine or process for production
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Setup Cost
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The time required to prepare a machine or process for production
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Setup Time
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An inventory-control technique that minimizes the total of ordering and holding costs
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Economic Order Quantity (EOQ) Model
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Giving satisfactory answers even with substantial variation in the parameters
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Robust
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In purchasing systems, the time between placing an order and receiving it; in production systems, the wait, move, queue, setup and run times for each component produced
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Lead Time
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The inventory level (point) at which action is taken to replenish the stocked item
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Reorder Point (ROP)
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Extra stock to allow for uneven demand; a buffer
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Safety Stock
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An economic order quantity technique applied to production orders
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Production Order Quantity Model
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A reduced price for items purchased in large quantities
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Quantity Discount
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P. 487 to continue
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P. 487 to continue
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