4.3 Inventory Management Flashcards
1
Q
Stock/Inventory
A
Materials and goods required to allow for the production and supply of products to the customer.
2
Q
Economic order quantity
A
The optimum or least cost quantity of stock to re-order taking into account delivery costs and stock holding costs.
3
Q
Lead time
A
The normal time taken between ordering new stocks and their delivery. The longer the lead time, the higher the re-order stock level will be.
