Operations - Inventory Management Flashcards
1
Q
Describe ‘Maximum Inventory Level’
A
Largest amount of stock stored on site
2
Q
Describe ‘Minimum Inventory Level’
A
Smallest amount of stock stored on site
3
Q
Describe ‘Re-order level’
A
Amount of stock ordered (takes 2 weeks lead time to arrive)
4
Q
Describe ‘Re-order Quantity’
A
Amount of stock ordered to restore inventory to maximum point
5
Q
Describe ‘Lead time’
A
Amount of time between an order for stock being placed and the order being delivered
6
Q
Describe ‘Buffer stock’
A
Backup stock
