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19 Cards in this Set
- Front
- Back
What is inventory turnover?
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Ratio of average cost of goods sold to average inventory investment.
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What is a periodic system?
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Physical count of items in inventory made at periodic intervals.
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What is a perpetual inventory system?
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System that keeps track of removals from inventory continuously, thus monitoring current levels of each item.
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What is a two-bin system?
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Two containers of inventory; reorder whent eh first is empty.
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What is a universal product code?
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Bar code printed on a label that has informationa bout the item to which it is attached.
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What is lead time?
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Time interval between ordering and receiving the order.
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What is a point of sale (POS)
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Method for electronically tracking sales and inventory.
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What is holding(carrying) cost?
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Cost to carry an item in inventory for a length of time, usually a year.
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What is ordering costs?
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Costs of ordering and receiving inventory.
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What is shortage costs?
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Costs resulting when demand exceeds the supply of inventory on hand; oft\etn unrealized profit per unit.
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What is cycle counting?
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A physical count of items in inventory.
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What is EOQ?
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Economic order quantity is the order size that minimizes total cost.
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What is quantity discounts?
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Price reductions for large orders.
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What is safety stock?
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Stock that is held in excess of expected demand due to variable demand rate.
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What is service level?
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Probability that demand will not exceed supply during lead time.
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What is fixed-order-interval (FOI) model?
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Orders are placed at fixed time intervals.
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What is single-period model?
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Model for ordering of perishablees and other items with limited useful lives.
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What is the shortage cost?
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Generally, the unrealized profit per unit.
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What is the excess cost?
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Differences between purchase cost and salvage value of items left over at the end of the period.
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