Ch12 Review Quizizz

The amount of inventory needed to meet expanded demand.

• ABC Approach to Inventory

• Cycle Stock

• Perpetual Inventory System

• Fill Rate

The average amount of inventory in a system is equal to the product of the average demand rate and the average time a unit is in the system.

• Fill Rate

• Cycle Stock

• Service Level

• Little's Law

When the quantity on hand of an item drops to this amount, the item is reordered.

• ROP

• Fill Rate

• Service Level

• Cycle Stock

Probability that demand will not exceed supply during lead time.

• Economic Order Quantity

• Little's Law

• Service level

• Perpetual Inventory System

The order size that minimizes total annual cost.

• Cycle Stock

• EOQ

• ROP

• Fill Rate

The percentage of demand filled by the stock on hand.

• ROP

• EOQ

• Cycle Stock

• Fill Rate

Classifying inventory according to some measure of importance, and allocating control efforts accordingly.

• Perpetual Inventory System

• ABC Approach to Inventory

• Little's Law

• ROP

Bar code printed on a label that has information about the item to which it is attached.

• Service Level

• EOQ

• UPC

• ROP

Costs resulting when demand exceeds the supply of inventory; often referred to as unrealized profit per unit.

• Shortage Costs

• Cycle Stock

• ROP

• EOQ

System that keeps track of removals from inventory continuously, thus monitoring current levels of each item.

• Cycle Stock

• Service Level

• A-B-C Approach to Inventory

• Perpetual Inventory System