4.02 & 4.03 Vocabulary

Bottom line

A business's net income; the decisive point.

Holding cost

The money it takes to keep inventory in stock.

Inputs

In the operations function—resources utilized.

Inventory

All the stock that a business has on hand.

Inventory control

Tracking the amount, the kind, and the value of inventory that a business has on hand.

Logistics

Refers to managing the flow of goods and services from production to consumption.

Operations

The day-to-day activities for continued business functioning.

Outputs

In the operations function - goods or services.

Purchasing

The buying of goods and services for a business.

Quality control

Ensuring the degree of excellence of a good or service.

Routing

The production activity that determines the sequence of the steps in the production process.

Scheduling

The production activity that establishes the timetable to be followed in production.

Timing

In the production process, determining when materials will arrive at a certain destination and how long they will stay there.

Advertising

Any paid form of nonpersonal presentation of ideas, goods, or services.

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Personal selling

The form of promotion that determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities.

Place

Marketing element focusing on considerations in getting a selected product in the right place at the right time.

Price

Marketing element requiring marketers to determine the amount of money they will ask in exchange for their products.

Product

Marketing element referring to what goods, services, or ideas a business will offer its customers.

Promotion

A marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome.

Publicity

Any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual that benefits from or is harmed b