ABC Analysis - inventory management that separates various items into three categories based on pricing and is separated into groups., EOQ Model - a technique utilized for planning and ordering an order quantity. It involves making a decision regarding the amount of inventory that should be placed in stock at any given time. The order will be re-ordered once the minimum order has been reached., FSN Method - This method of inventory control refers to the process of keeping track of all the items of inventory that are not used frequently or are not required all the time. They are then categorized into three different categories: fast-moving inventory, slow-moving inventory, and non-moving inventory., JIT Method - is a process utilized by manufacturers to control their inventory levels. This method saves them money by not storing and insuring their excess inventory. However, it is very risky since it can lead to stock out and increase costs., Minimum Safety Stocks - refers to the level of inventory that an organization maintains to avoid a possible stock-out., MRP Method - is a process utilized by manufacturers to control the inventory by planning the order of the goods based on the sales forecast. The order is usually based on the data collected by the system., VED Analysis - is a technique utilized by organizations to control their inventory. It mainly pertains to the management of vital and desirable spare parts. The high level of inventory that is required for production usually justifies the low inventory for those parts., Lean Manufacturing - This methodology focuses on removing waste or any item that does not provide value to the customer from the manufacturing system., Batch Tracking - This method groups similar items to track expiration dates and trace defective items., Bulk Shipments - This method considers unpacked materials that suppliers load directly into ships or trucks. It involves buying, storing and shipping inventory in bulk., Consignment Inventory Management - your business won’t pay its supplier until a given product is sold. That supplier also retains ownership of the inventory until your company sells it., Cross-Docking - Using this method, you’ll unload items directly from a supplier truck to the delivery truck. Warehousing is essentially eliminated., Demand Forecasting - This form of predictive analytics helps predict customer demand., Dropshipping - the supplier ships items directly from its warehouse to the customer., Reorder Point Formula - Businesses use this to find the minimum amount of stock they should have before reordering, then manage their inventory accordingly., Safety Stock - An inventory management ethos that prioritizes this will ensure there’s always extra stock set aside in case the company can’t replenish those items, Minimum Order Quantity - A company that relies on this will order minimum amounts of inventory from wholesalers in each order to keep costs low., Perpetual Inventory Management - This technique entails recording stock sales and usage in real-time., Six Sigma - This is a data-based method for removing waste from businesses as it relates to inventory.,

Inventory Management Terminology - English

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