Inventory Control in Business Management

These flashcards cover key terms and concepts related to inventory control, operations management, and purchasing strategies in business.

Operations

The function responsible for managing the production of goods and services.

Inputs

Resources such as labor, machines, materials, and capital required for production.

Process

The transformation of inputs into outputs during the production cycle.

Outputs

The finished goods and services produced from the manufacturing process.

Inventory Control

The management of inventory levels to balance production needs with holding costs.

Re-order Level

The inventory level at which new stock should be ordered to replenish supplies.

Just In Time (JIT)

An inventory management strategy that aligns raw-material orders with production schedules.

Economic Order Quantity (EOQ)

The ideal order quantity a company should purchase to minimize logistics costs.

Lead Time

The time taken from placing an order to receiving it.

First In, First Out (FIFO)

An inventory management practice where the oldest inventory items are sold first.

Work In Progress (WIP)

Inventory that is in the process of being manufactured but isn't yet complete.

Centralized Warehousing

A storage strategy where inventory is kept in one location for improved efficiency.

Decentralized Warehousing

A storage strategy where inventory is spread across multiple locations to improve responsiveness.

Buffer Inventory

Extra inventory held to meet unexpected demands during fluctuations.

Quality Control

Processes aimed at ensuring products meet specified quality standards.

Scheduling

The planning of tasks and processes to ensure resources are used efficiently and deadlines met.

Supplier Dependability

The reliability of suppliers in meeting delivery schedules and quality requirements.

Inventory Management System

A system used to track inventory levels, orders, sales, and deliveries.

Physical Inventory Count

A manual counting of inventory to ensure accurate record-keeping.

Inventory Holding Costs

Costs associated with storing unsold goods, including storage, insurance, and deterioration.