Unit 22. Inventory Management

Question	Answer
Stock (inventory)	Materials and goods required to allow for the production and supply of products to the customer
Economic order quantity	The optimum or least-cost quantity of stock to re-order taking into account delivery costs and stock-holding costs
Buffer stocks	The minimum stocks that should be held to ensure that production could still take place should a delay in delivery occur or should production rates increase
Re-order quantity	The number of units ordered each time
Lead time	The normal time taken between ordering new stocks and their delivery
Just-in-time	This stock-control method aims to avoid holding stocks by requiring supplies to arrive just as they are needed in production and completed products are produced to offer

Resource summary

	Created by Injir Och almost 8 years ago