The process of overseeing and controlling a company’s inventory to ensure optimal stock levels and minimize costs.

Key Performance Indicators are measurable values that demonstrate how effectively a company is achieving its business objectives.

First In, First Out is an inventory valuation method where the oldest inventory items are sold first.

Last In, First Out is an inventory valuation method where the most recently acquired items are sold first.

An inventory valuation method that calculates the average cost of inventory items based on their purchase costs.

A method of categorizing inventory into three classes (A, B, C) based on importance and value.

An inventory management strategy that aims to reduce inventory costs by receiving goods only as needed.

Extra inventory held to prevent stockouts caused by variability in demand or supply.

The method used to determine the value of a company's inventory for financial reporting.

The quantity of goods available in inventory at any given time.

Applications designed to assist in managing inventory processes efficiently.

A ratio that measures how many times inventory is sold and replaced over a period.

The total amount of money being transferred in and out of a business, affecting inventory purchasing.

The management of the flow of goods and services from suppliers to customers.

The inventory level at which a new order should be placed to replenish stock.

The specific inventory level that triggers a new purchase order.

The process of estimating future customer demand to ensure adequate inventory levels.

The time taken from placing an order to receiving the inventory.

A situation where inventory is exhausted, preventing sales.

A physical count of inventory to verify accuracy and ensure proper management.

A method of tracking inventory in real-time as transactions occur.

Items that sell at a slower rate and may require special management strategies.

Inventory that exceeds the optimal level, potentially leading to increased holding costs.

A comprehensive strategy outlining how inventory will be controlled and optimized.

The process of evaluating the efficiency and effectiveness of inventory management practices.