Term
| ABC Inventory Classification |
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Definition
Divides inventory into dollar volume categories that map into strategies appropriate for the category.
Based on the 80:20 Rule, 20% of the inventory makes up 80% of the cost. |
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Term
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Definition
| The need for any one time is a direct result of the need for some other itme, usually an item of which it is a part. |
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Term
| Fixed-Order Quantity Model (or Q-model) |
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Definition
| An inventory control model where the amount requisitioned is fixed and the actual ordering is triggered by inventory dropping to a specified level of inventory. |
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Term
| Fixed-Time Period Model (or P-Model) |
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Definition
| An inventory control model that specifies inventory is ordered at the end of a predetermined time period. The interval of time between orders is fixed and the order quantity varies. |
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Term
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Definition
| The demands for various items are unrelated to each other. |
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Term
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Definition
| The amount on-hand plus on-order minus backordered quantities. In the case where inventory has been allocated for special purposes, the inventory position is reduced by these allocate amounts. |
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Term
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Definition
| The stock of any item or resource used in an organization. |
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Term
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Definition
| The amount of inventory carried in addition to the expected demand. |
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Term
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Definition
Q-Model
Favors more expensive items because average inventory is lower. |
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