Supply Chain Management: Inventory and Distribution

These flashcards cover key vocabulary and concepts related to inventory management, transportation, and distribution within supply chain management.

Cost of Goods Sold (COGS)

The direct costs attributable to the production of the goods sold in a company.

Inventory Management

A set of techniques used to manage inventory levels in a supply chain with the goal of reducing costs while maintaining service levels.

Cycle Stock

Inventory needed to meet demand between normally scheduled orders.

Safety Stock

Inventory held to compensate for demand uncertainty and order lead times.

Seasonal Inventory

Inventory produced and stockpiled in anticipation of future demand.

Economic Order Quantity (EOQ)

The most cost-effective amount to purchase at one time, minimizing total inventory costs.

Reorder Point

The inventory level at which a new order is triggered.

Just in Time (JIT)

An operating concept that delivers materials at exact amounts and times to minimize inventory costs.

Materials Requirements Planning (MRP)

A system for scheduling production and managing inventory based on demand forecasting.

Distribution Requirements Planning (DRP)

A system that schedules replenishment for outbound shipments from manufacturing facilities to distribution centers.

Vendor Managed Inventory (VMI)

A system where suppliers manage inventory levels at customer locations.

ABC Analysis

A method of classifying inventory based on its importance and value.

Distribution Center (DC)

A facility that stores product and supports distribution through various functions like accumulation, sortation, allocation, and assortment.

Slotting

The placement of products in a facility to enhance material handling and space efficiency.

Transportation Modes

The various methods of moving goods, including water, rail, truck, pipeline, and air.

Intermodal Transportation

Using two or more modes of transportation to move products for cost efficiencies.

Jones Act

A law that mandates cargo between U.S. ports must be carried on U.S.-built and manned ships.

U.S. Shipbuilding Capacity

The percentage of ships built in the U.S., which is significantly lower than that of countries like China.

Presidential Executive Order 14269

An initiative to restore U.S. maritime dominance and enhance shipbuilding capabilities in America.