Underlying pattern of growth or decline in a time series.
What is a trend?
100
Time between placement of order and its receipt.
What is lead time?
100
Additional planned on-hand inventory that acts as a buffer to reduce risk of stockout.
What is safety stock?
100
Time needed to process a given set of jobs.
What is makespan?
200
A one-time variation that is explainable.
What is irregular variation?
200
Inability to satisfy demand for an item.
What is stockout?
200
Value of the inventory position that triggers a new order.
What is reorder point?
200
Amount of time a job spent in the shop or factory.
What is flow time?
300
Statistical forecasting model that is best for the short term, when there is no major trend, seasonal or business cycle.
What is simple moving average (SMA)?
300
A single item or asset stored at a particular location.
What is a stock-keeping unit (SKU)?
300
On-hand quantity plus any orders placed, but which have not arrived, minus any backorders.
What is inventory position?
300
Difference between the completion time and the due date (POS or NEG).
What is lateness?
400
Calculated by squaring individual forecast errors, and then averaging results over all periods in time series.
What is mean square error (MSE)?
400
Demand for an inventory item that is unrelated to the demand for another inventory item and needs to be forecast.
What is independent demand?
400
Classic economic model that minimizes the total cost, which is the sum of the inventory-holding cost and the ordering cost.
What is the economic order quantity (EOQ)?
400
Used when processing times are relatively equal.
What is first come, first-served (FCFS)?
500
A measure of how much variation in the dependent variable is explained by the independent variable.
What is R2?
500
Principle behind a method for defining inventory value that was named after an Italian economist who studied distribution of wealth in Milan during the 1800's.
What is the Pareto principle?
500
Inventory that results from purchasing or producing in larger lots than are needed for immediate consumption or sale.
What is cycle inventory?
500
Tends to minimize average flow time and WIP inventory and maximize resource utilization.