RSS 
Glossary
Method of categorizing items based on cost and demand quantity to identify which items need more attention than others
Quantity available for customer sales orders. Availability is calculated as On Hand - Open Sales Orders - Open Production Orders (Assemblies) - Safety Stock
The minimum stock level for a production item. A production work order (ie Assembly) should be issued when the quantity on hand reaches the Build Point.
Indirect cost associated with inventory, including storage costs, insurance and taxes
Number of days that a given inventory level will satisfy customer demand
The amount of goods requested by customers, on average, per a given time period (e.g. monthly)
Number of days between a purchase order being issued and the receipt of goods into inventory
Inventory that is at the end of its life cycle and no customer orders have been received for a given period of time
Excess inventory above the recommended stocking level based on customer demand
The minimum stock level for an inventoried item. A purchase order should be issued when the quantity on hand reaches the Reorder Point.
A level of inventory reserved as a buffer for problems with vendor shipments, unexpected customer orders or damaged goods
Percentage of customer sales orders that can be shipped complete by the requested ship date
Inventoried items that have had very little customer demand over a given time period
Number of times inventory is sold in a year. Usually calculated as Cost of Goods Sold / Average Inventory
