Inventory Management Flashcards Preview

APICS CPIM - Basics of SC Mgmt > Inventory Management > Flashcards

Flashcards in Inventory Management Deck (15):
0

The target inventory, or order up to, value used in a periodic review system.

TARGET LEVEL

1

A measure of satisfying demand through inventory or by the current production schedule in time to satisfy the customer requested delivery dates and quantities.

SERVICE LEVEL

2

A lot sizing technique that will always cause planned or actual orders to be generated for a pre-determined fixed quantity, or multiples thereof.

FIXED ORDER QUANTITY

3

In general, a quantity of stock planned to be in inventory to protect against fluctuations in supply or demand.

SAFETY STOCK

4

An inventory record keeping system where each transaction in and out is recorded and a new balance is computed.

PERPETUAL INVENTORY RECORD SYSTEM

5

The classification of a group of items in decreasing order of annual dollar volume.
A=20% items, 80% cost
B=30% items, 15% cost
C=50% items, 5% cost

ABC ANALYSIS

6

An inventory accuracy audit technique where inventory is counted on a cyclic schedule rather than once a year.

CYCLE COUNTING

7

A lot sizing technique that generates planned orders in quantities equal to the net requirements in each period.

LOT FOR LOT

8

A physical inventory taken at some recurring interval.

PERIODIC INVENTORY AUDIT

9

A type of fixed order system in which inventory is carried in two bins. A replenishment quantity is ordered when the first bin in emptied.

TWO BIN SYSTEM

10

A type of fixed order quantity model that determines the amount of an item to be purchased or manufactured at one time. The intent is to minimize the combined costs of acquiring and carrying inventory.

ECONOMIC ORDER QUANTITY

11

An item at a particular geographic location

STOCK KEEPING UNIT

12

A form of independent demand management model in which an order is placed every set time interval. The order quantity is variable and essentially replaces the items consumed during the current time period.

PERIODIC REVIEW

13

An inventory method that places an order for a lot whenever the quantity on hand is reduced to a pre-determined level known as the order point.

ORDER POINT SYSTEM

14

A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials and components.

MATERIALS REQUIREMENTS PLANNING