Glossary
- ABC Analysis
An analysis that divides inventory into three groups. Group A is more important than group B, which is more important than group C.
- Average Inventory
The average inventory on hand. In this chapter, the average inventory is for the EOQ model.
- Bill of Materials (BOM)
A material structure tree of the components in a product, with a description and the quantity required to make one unit of that product.
- Carrying Cost
The cost of holding inventory over time.
- Economic Order Quantity (EOQ)
The amount of inventory ordered that will minimize the total inventory cost. It is also called the optimal order quantity, or
- Enterprise Resource Planning (ERP)
A computerized information system that integrates and coordinates the operations ...
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