Inventory Control Flashcards
1
Q
Describe maximum inventory level
A
The highest amount of inventory an organisation should hold before it incurs extra costs.
2
Q
Describe minimum inventory level
A
The lowest amount of inventory an organisation should hold below which they would become understocked.
3
Q
Describe re-order level
A
The point at which a new order is placed with the supplier.
4
Q
Describe re-order quantity
A
The amount of inventory ordered from your supplier.
5
Q
Describe lead time
A
The time between ordering inventory from your supplier and it arriving.
