Easy
This type of inventory is kept to satisfy customer orders.
What is Finished Goods?
The demand for components based on the need for a final product.
What is Dependent Demand?
This inventory system involves continuous monitoring to determine reorder points.
What is the Continuous Review System?
This inventory review policy orders the same quantity Q when inventory reaches reorder point s.
What is (s, Q) Continuous Review Policy?
Massive parallel software applications are required to process this kind of data in real-time for inventory management.
What is Big Data?
This is inventory used to prevent disruptions in the supply chain.
What is Safety Stock?
This inventory control system prioritizes items into A, B, and C categories.
What is ABC Inventory Control?
A model that considers trade-offs between annual inventory holding costs and order costs.
What is Economic Order Quantity (EOQ)?
The inventory level at which a new order must be placed to avoid a stockout.
What is Reorder Point (ROP)?
This model assumes lead time is constant while demand during delivery lead time is specified by a normal distribution.
What is Statistical ROP with Probabilistic Demand and Constant Lead Time?
Costs that vary with the number of units produced.
What are Variable Costs?
This ratio measures how many times inventory is used in an accounting period.
What is Inventory Turnover?
A variation of the EOQ model that allows for quantity discounts.
What is the Quantity Discount Model?
Costs related to machine and equipment setups in manufacturing.
What are Setup Costs?
A method of physically counting inventory on a periodic basis.
What is Cycle Counting?
This technology is used to track individual items without requiring direct line of sight.
What is RFID?
The cost incurred for holding inventory in storage.
What is Holding Cost?
This component is used for wireless communication and storing information in RFID.
What is an RFID Tag
Items categorized as this account for 80% of the total inventory cost.
What are A Items?
The RFID standard approved as ISO 18000-6C.
What is EPCglobal Standard?
The classic model used to find the optimal order quantity.
What is Economic Order Quantity (EOQ)?
This type of device reads the tags on RFID-enabled items.
What is an RFID Reader?
A type of inventory that presents challenges due to its short lifespan.
What is Perishable Inventory?
This model is appropriate for simultaneous manufacture and consumption in a production environment.
What is the Economic Manufacturing Quantity (EMQ) Model?
In this inventory system, the review occurs periodically, such as weekly or monthly.
What is the Periodic Review Inventory System?