• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

Card Range To Study



Play button


Play button




Click to flip

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;

23 Cards in this Set

  • Front
  • Back
ABC Approach
Classifying inventory according to some use of importance, and allocating control efforts accordingly.
Cycle Counting
A physical count of items in inventory.
Economic Order Quantity (EOQ)
The order size that minimizes total annual costs.
Excess Cost
Difference between purchase price and salvage value of items left over at the end of a period.
Fill Rate
The percentage of demand filled by the stock on hand.
Fixed Order Interval (FOI) Model
Orders are placed at fixed time intervals.
Holding (carrying) cost
Cost to carry an item in inventory for a length of time, usually a year.
A stock or store of goods.
Inventory Turnover
Ratio of average cost of goods sold to average inventory.
Lead Time
Time interval between ordering and receiving the order.
Little`s Law
The average amount of inventory in a system is equal to the product of the average demand rate and the average time a unit is in the system.
Ordering Costs
Costs of ordering and receiving inventory.
Periodic System
Physical count of items in inventory made at periodic intervals (weekly, monthly).
Perpetual Inventory System
System that keeps track of removals from inventory continuously, thus monitoring current levels of each item.
Point-of-Sale System
Record items at time of sale.
Quantity Discounts
price reductions for large orders.
Reorder Point
When the quantity on hand of an item drops to this amount, the item is reordered.
Safety stock
Stock that is held in excess of expected demand due to variable demand and/ or lead time.
Service Level
Probability that demand will not exceed supply during lead-time.
Shortage Costs
Costs resulting when demand exceeds the supply of inventory; often unrealized profit per unit.
Single-Period Model
Model for ordering of perishables and other items with limited useful lives.
Two-Bin System
Two containers of inventory; reorder when the first is empty.
Universal Product code (UPC)
Bar code printed on a label that has information about the item to which it is attached.