Chapter Thirteen: Purchasing, Inventory, and Quality Control

These flashcards cover key concepts and terminology associated with purchasing, inventory control, and quality management.

Purchasing

The process of determining a company's needs and finding, ordering, and assuring delivery of those items.

Just-in-Time (JIT) Delivery

A strategy where materials are delivered to the user at the time they are needed for production, reducing inventory costs.

Supplier-base downsizing

The practice of reducing the number of suppliers to focus purchasing efforts.

Supply chain

An integrated-coordinated system of activities to transform raw materials into finished products delivered to consumers.

Supply chain management (SCM)

The process of planning, organizing, directing, and controlling a supply chain from origin to consumption.

Inventory

A formal list of all the property of a business, including goods available for sale and other supplies.

Economic Order Quantity (EOQ)

The quantity to purchase that balances the cost of placing the order with the cost of carrying the inventory.

Quality

Refers to product characteristics and/or the likelihood of meeting established standards.

Quality circles (QCs)

Small workgroups that meet periodically to find ways to improve quality and performance.

Deming’s 14 Points

A set of principles developed by W. Edwards Deming to improve product and service quality.