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11 - Inventory Management
Chapter 11
9
Management
Undergraduate 3
05/03/2014

Additional Management Flashcards

 


 

Cards

Term
ABC Inventory Classification
Definition

Divides inventory into dollar volume categories that map into strategies appropriate for the category.

 

Based on the 80:20 Rule, 20% of the inventory makes up 80% of the cost.

Term
Dependent Demand
Definition
The need for any one time is a direct result of the need for some other itme, usually an item of which it is a part.
Term
Fixed-Order Quantity Model (or Q-model)
Definition
An inventory control model where the amount requisitioned is fixed and the actual ordering is triggered by inventory dropping to a specified level of inventory.
Term
Fixed-Time Period Model (or P-Model)
Definition
An inventory control model that specifies inventory is ordered at the end of a predetermined time period.  The interval of time between orders is fixed and the order quantity varies.
Term
Independent Demand
Definition
The demands for various items are unrelated to each other.
Term
Inventory Position
Definition
The amount on-hand plus on-order minus backordered quantities.  In the case where inventory has been allocated for special purposes, the inventory position is reduced by these allocate amounts.
Term
Inventory
Definition
The stock of any item or resource used in an organization.
Term
Safety Stock
Definition
The amount of inventory carried in addition to the expected demand.
Term
Economic Order Quantity
Definition

Q-Model

 

Favors more expensive items because average inventory is lower.

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