39 Inventory control

Question 1

Define inventory

Answer 1

inventories are stocks held by a business, to meet future demand.

Question 2

Define buffer stocks

Answer 2

buffer stocks are stocks helf as a precaution to cope with unexpected demand.

Question 3

Define lead time

Answer 3

lead time is the time between placing the order and the delivery of goods.

Question 4

Define stock rotation

Answer 4

stock rotation is the flow of stock into and out of storage

Question 5

Define re-order level

Answer 5

re-order level is the level of current stock when new orders are placed

Question 6

Define re-order quantity

Answer 6

re-order quantity is the amount of stock ordered when an order is placed.