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Definitions (49)
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Allocated Stock
Stock-on-hand that has been set aside and is not available for sale or issue.
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replenishment cycle
The amount of stock, in time, to be purchased when a recommended order is triggered. The unit quantity is calculated by looking forward, at the end of the lead time period from today, the replenishment cycle period over future demand (Forecasts + BOM demand + Central Warehouse demand)
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Average cost
The cost price of the item used to valuate the inventory.
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backorder
The quantity associated with a firm sales/customer order where the expected delivery date has passed today's date.
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bill of material
The list of all raw material items along with their quantity needed to make a finished good item.
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Central Warehouse
The structure where branches or locations are supplied by a centralised location instead of external vendors. The centralised location is however supplied by external vendors.
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Classification
The categorization of item codes into volume and value based groupings (HML & ABC) depending on their contribution to total sales/forecasts.
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C.O.S.
The average monthly value of sales, at cost price, over the last 12 months.
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Lead time
The period of time from deciding to place a purchase order with a supplier, to when it is available for sale to the customer. In the case of production lead time, it is the time from when the raw stock is requested to when it is available to production.
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Lost Sales
The value of forecasted sales to be lost due to being out of stock.
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