Reference
Inventory management glossary
Clear definitions of essential inventory management concepts, with research-backed explanations and how Stocklyst applies each one.
Safety Stock
Safety stock is extra inventory held to protect against variability in demand and supply lead times.
Read full definitionReorder Point
The reorder point is the inventory level at which a new purchase order should be placed to replenish stock before it runs out.
Read full definitionSKU (Stock Keeping Unit)
A SKU is a unique alphanumeric identifier assigned to each distinct product in an inventory system.
Read full definitionLead Time
Lead time is the total duration between placing a purchase order with a supplier and receiving the goods into inventory.
Read full definitionDemand Classification
Demand classification is the process of categorizing items based on their demand patterns to select appropriate forecasting and inventory management methods.
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Zone-based tracking is an inventory management approach where each physical location is subdivided into zones representing specific storage areas.
Read full definitionMin/Max Inventory
Min/max inventory is a replenishment method where stock is reordered when quantity drops below a minimum threshold and ordered up to a maximum level.
Read full definitionEconomic Order Quantity (EOQ)
Economic Order Quantity is the optimal order size that minimizes the total cost of ordering and holding inventory.
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