39 Inventory control Flashcards
1
Q
Define inventory
A
inventories are stocks held by a business, to meet future demand.
2
Q
Define buffer stocks
A
buffer stocks are stocks helf as a precaution to cope with unexpected demand.
3
Q
Define lead time
A
lead time is the time between placing the order and the delivery of goods.
4
Q
Define stock rotation
A
stock rotation is the flow of stock into and out of storage
5
Q
Define re-order level
A
re-order level is the level of current stock when new orders are placed
6
Q
Define re-order quantity
A
re-order quantity is the amount of stock ordered when an order is placed.