economies of scale Decreasing average unit cost by increasing volume. stockpiling or price break or economies of scale? economies of scale Decreasing average unit cost by increasing volume. Page 286 Click here for Hint

price break A discount for orders of a certain minimum size. price break or price break quantity or shrinkage? price break A discount for orders of a certain minimum size. Page 286 Click here for Hint

inventory Tangible items awaiting sale or use. inventory or finished goods or cycle stock? inventory Tangible items awaiting sale or use. Page 284 Click here for Hint

lead time Any delay between requesting a product and receiving it. holding cost or service level or lead time? lead time Any delay between requesting a product and receiving it. Page 303 Click here for Hint

cycle stock Inventory held to gain economies of scale. pipeline stock or cycle stock or inventory? cycle stock Inventory held to gain economies of scale. Page 286 Click here for Hint

opportunity cost Cost of an alternative foregone. In inventory opportunity cost or tangibility or cost of capital? opportunity cost Cost of an alternative foregone. In inventory planning, this is often the cost of capital. Page 287 Click here for Hint

fixed cost or variable cost or holding cost? Cost that varies with volume of associated activity or, in inventory planning, the size of the order. Page 287 Click here for Hint

reorder point or probabilistic or service level? The probability that demand for an item will be met during the lead time on replenishment of that same item. Page 305 Click here for Hint

shrinkage Physical loss of inventory before sale or use. shrinkage or opportunity cost or tangibility? shrinkage Physical loss of inventory before sale or use. Page 287 Click here for Hint

sawtooth diagram A graph of inventory levels over time. sawtooth diagram or algorithm or Pareto analysis? sawtooth diagram A graph of inventory levels over time. Page 292 Click here for Hint

order cycle The time required for average demand to consume an order, run size or order cycle or WIP? order cycle The time required for average demand to consume an order, triggering another order for replenishment. Page 292 Click here for Hint

lead time or SKU or average inventory? The average of the beginning and the ending inventory of a particular time period. Page 293 Click here for Hint

inventory turnover The number of annual inventory cycles, sometimes order cycle or inventory turnover or stockpiling? inventory turnover The number of annual inventory cycles, sometimes referred to as turns. Page 293 Click here for Hint

fixed cost or variable cost or holding cost? Cost incurred regardless of the volume of associated activity. In inventory planning, this is understood to be costs incurred regardless of the size of the order. Page 289 Click here for Hint

holding cost Variable costs associated with having inventory. holding cost or variable cost or fixed cost? holding cost Variable costs associated with having inventory. Page 287 Click here for Hint

standard normal distribution Pareto analysis or algorithm or standard normal distribution? standard normal distribution A normal distribution with a mean of zero and a variance of 1. Any other normal distribution can be converted to this standard, allowing the use of standard normal tables to analyze the original distributions. Page 305 Click here for Hint

WIP (work in process) Inventory resulting from transformation of raw WIP or average inventory or order cycle? WIP (work in process) Inventory resulting from transformation of raw materials, but not yet ready for sale to consumers. Page 285 Click here for Hint

periodic review system SKU or periodic review system or fixed order interval policy? periodic review system An inventory system operated according to a fixed order interval policy. Page 290 Click here for Hint

spoilage Unintended transformation ABC policy or WIP or spoilage? spoilage Unintended transformation of inventory before sale or use, rendering it inappropriate for its original purpose. Page 287 Click here for Hint

deterministic or probabilistic or fixed cost? Fixed and known in advance, representing a high level of certainty when planning. Page 303 Click here for Hint

fixed order quantity policy SKU or fixed order quality policy or fixed order interval policy? fixed order quantity policy An inventory system in which the amount of replenishment is predetermined at some economical value and its timing is then determined by the rate of previous demand. Page 289 Click here for Hint

SKU (stock keeping unit) backorder or SKU or optimization? SKU (stock keeping unit) A particular item of inventory. Page 284 Click here for Hint

cost of capital The cost of funding for an organization, such as the holding cost or fixed cost or cost of capital? cost of capital The cost of funding for an organization, such as the interest rate on borrowed funds. Page 287 Click here for Hint

run size or run time or order cycle? A batch or order, size associated with the production of an item. Page 300 Click here for Hint

backorder or stockpiling or safety stock? Producing or securing goods in advance of demand, building up substantial inventory. Page 286 Click here for Hint

backorder To delay order fulfillment due to inadequate supply. back order or order cycle or service level? backorder To delay order fulfillment due to inadequate supply. Page 288 Click here for Hint

stock out To fail to meet customer demand due to inadequate supply. stock out or shrinkage or opportunity cost? stock out To fail to meet customer demand due to inadequate supply. Page 288 Click here for Hint

tangibility The degree of perceivable, physical essence of a product. tangibility or optimization or inventory? tangibility The degree of perceivable, physical essence of a product. Page 284 Click here for Hint

run time The time required to produce a batch of some item. run size or run time or order cycle? run time The time required to produce a batch of some item. Page 300 Click here for Hint

fixed order interval policy SKU or fixed order quality policy or fixed order interval policy? fixed order interval policy An inventory system in which the amount of replenishment is determined by the rate of previous demand and its timing is predetermined at an economical interval. Page 290 Click here for Hint

algorithm A procedure described by a series of steps. algorithm or SKU or standard normal distribution? algorithm A procedure described by a series of steps. Page 298 Click here for Hint

price break quantity The minimum order size price break or price break quantity or order cycle? price break quantity The minimum order size that qualifies for a quantity discount. Page 297 Click here for Hint

ABC policy or Pareto analysis or algorithm? The use of statistics to identify which factors are the most influential in a particular outcome of interest. Page 290 Click here for Hint

safety stock or reorder point or run size? An inventory level that triggers replenishment of an item. Page 303 Click here for Hint

ABC policy Prioritizing the management cycle stock or ABC policy or Pareto analysis? ABC policy Prioritizing the management of inventory according to the significance of each item’s annual dollar volume to the organization. Page 290 Click here for Hint

raw materials Inventory brought in from outside the system. cycle stock or safety stock or raw materials? raw materials Inventory brought in from outside the system. Page 285 Click here for Hint

safety stock Inventory held to protect against uncertain supply or pipeline stock or cycle stock or safety stock? safety stock Inventory held to protect against uncertain supply or demand. Page 286 Click here for Hint

optimization Identification of the best alternative. optimization or probabilistic or deterministic? optimization Identification of the best alternative. Page 292 Click here for Hint

pipeline stock Inventory currently in transit between locations. pipeline stock or cycle stock or safety stock? pipeline stock Inventory currently in transit between locations. Page 286 Click here for Hint

finished goods Inventory awaiting sale to consumers. cycle stock or inventory or finished goods? finished goods Inventory awaiting sale to consumers. Page 285 Click here for Hint

deterministic or probabilistic or algorithm? Variable or not well known in advance; subject to randomness. This represents some uncertainty in planning. Page 303 Click here for Hint