Term
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Definition
| The ranking of all items of inventory according to importance. |
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Term
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Definition
| Extra inventory held to guard against uncertainty in demand or supply. |
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Term
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Definition
| A small disturbance generated by a customer produces successively larger disturbances at each upstream stage in the supply chain. |
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Term
| carrying (or holding) cost |
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Definition
| Several expenses that are incurred due to the fact that inventory is held. |
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Term
| collaborative planning, forecasting, and replenishment (CPFR) |
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Definition
| Supply chain partner firms share information and insights in order to generate better forecasts and plans. |
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Term
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Definition
| A process where each item in inventory is physically counted on a routine schedule. |
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Term
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Definition
| The number of days of business operations that can be supported with the inventory on-hand. |
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Term
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Definition
| Items that are ready for sale to customers. |
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Term
| Global Trade Item Number (GTIN) |
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Definition
| An item identification system for finished goods sold to consumers. |
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Term
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Definition
| A supply of items held by a firm to meet demand. |
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Term
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Definition
| The ratio between average inventory and the level of sales. |
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Term
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Definition
| Maintenance, repair, and operating supplies. |
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Term
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Definition
| The expenses incurred in placing and receiving orders from suppliers. |
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Term
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Definition
| The rule that a small percentage of items account for a large percentage of sales, profit, or importance to a company. |
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Term
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Definition
| A unique identifier of a part used by a specific company. |
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Term
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Definition
| The amount paid to suppliers for products that are purchased. |
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Term
| Raw materials and component parts |
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Definition
| Items that are bought from suppliers to use in the production of a product. |
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Term
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Definition
| A measure of how well the objective of meeting customer demand is met. |
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Term
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Definition
| Administrative expenses and the expenses of rearranging a work center to produce an item. |
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Term
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Definition
| An event that occurs when no inventory is available. |
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Term
| stockout (or shortage) cost |
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Definition
| Cost incurred when inventory is not available to meet demand. |
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Term
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Definition
| Items being transported from one location to another. |
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Term
| vendor-managed inventory (VMI) |
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Definition
| The vendor is responsible for managing the inventory located at a customer's facility. |
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Term
| work in process inventory |
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Definition
| Inventory that is in the production process. |
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