Chapter 12 Flashcards
1
Q
Raw materials
A
Purchased items or extracted materials transformed into components or products.
2
Q
Components
A
Parts or subassemblies used in the final product.
3
Q
Work-in-process (WIP)
A
Items in process throughout the plant.
4
Q
Finished goods
A
Products sold to customers.
5
Q
Distribution inventory
A
Finished goods in the distribution system
6
Q
Anticipation inventory
A
Inventory built in anticipation of future demand.
7
Q
Fluctuation inventory
A
Provides a cushion against unexpected demand
8
Q
Lot-size inventory
A
A result of the quantity ordered or produced.
9
Q
Transportation inventory
A
Inventory in movement between locations.
