Acquisition cost -The cost of buying goods for inventory.

C -Symbol used to describe the cost of carrying a unit in inventory(Gaither p381).

Carrying costs -The cost of holding a good in inventory.

D -Symbol used to describe the annual demand for a good(Gaither p381).

d -Symbol used to describe the rate of use for a good(Gaither p386).

Demand -A quantity that customers are willing to buy.

Economic Order Quantity(EOQ) -The order quantity that minimizes the stocking cost of an item(Gaither p377).

Expected demand during lead time -The demand during the time it takes to receive an order after it is placed(Gaither p390).

First In, First Out(FIFO) -A method of inventory valuation in which the ending unit order costs are used to find total inventory value.

Fixed order period system -A system where inventory levels are set at predetermined levels and at fixed times throughout the inventory cycle orders are placed to return inventory to its predetermined levels.

Fixed order quantity system -A system where orders are placed as fixed quantities with varied periods of ordering.

Forecasting -The process of estimating future demand for a good or service.

Good -An item of inventory.

Interference -Factors in forecasting that are beyond the forecasters ability to control.

Inventory -A group of goods that a store holds to sell to customers.

Iventory cycle -The process of ordering, receiving, using/selling and reordering of goods.

Inventory management -The process of reducing inventory costs while remaining responsive to customer demands.

Inventory sheet -A form which lists a goods classification, number in stock and location(Wingate p158).

Just In Time(JIT) system -A system of inventory control where supply matches demand. In this system goods are received as the last in inventory is depleated.

Last In, First Out(LIFO) -A method of inventory valuation in which the beginning unit order costs are used to determine the total inventory value.

Ordering costs -The cost of ordering a good to be placed in inventory.

Ordering point -A point in time at which a order is placed to resupply goods.

p -symbol used to describe the rarte of supply for a good(Gaither p381).

Qualitative forecasting -The use of personal experiences, committees or surveys to estimate future demand.

Quantitative forecasting -The examination of past data to determine future sales by using numerical data and statistical modeling.

Quantity discounts -A dicount given when a large quantity of goods is ordered.

S -Symbol used to describe the average cost of completing a order(Gaither p381).

Safety stock -A quantity of goods held to meet unexpected demand or shortages in supply periods(Gaither p378).

Specific Cost -A mehtod of inventory valuation in which each units costs are used to find the total inventory value.

Stockout -A point when an good is no longer available in inventory.

Stockout cost -The cost of lost sales when a good is no longer available in inventory.

Two bin system -A system of reordering goods based on using two storage bins to regulate reordering times. A order is placed for resupply when the larger bin is emptied.

Weighted Average -A method of inventory valuation in which the average cost of goods in inventory is multiplied by the inventory level to find total inventory value.