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EOQ is a formula used to determine the optimal order quantity that minimizes the total costs of inventory, including holding and ordering costs. Useful for consistent demand and predictable supply.

JIT is a strategy that aligns raw-material orders with production schedules to minimize inventory. It's applied in lean manufacturing to improve efficiency and decrease waste.

ABC analysis is a method of categorizing inventory into three categories (A, B, C) based on importance and value, with A being the most valuable. It helps prioritize management focus.

Consignment inventory is where a supplier places stock in a customer's location but retains ownership until the product is sold. Reduces inventory costs and risks for the buyer.

Inventory Turnover Ratio measures how often inventory is sold and replaced over a period. It's used to assess efficiency in managing inventory.

Safety stock is extra inventory kept to prevent stockouts due to demand variability or supply delays. It's a buffer against uncertain demand and lead times.

ROP is the inventory level at which a new order should be placed to replenish stock before it runs out. It's calculated based on lead time and average demand.

Continuous Review System (also known as Perpetual Inventory System) involves continuously tracking inventory levels for real-time reordering decisions.

Periodic Review System involves checking and ordering inventory at fixed intervals, regardless of current stock levels, often leading to variable order quantities.

Dropshipping is an order fulfillment method where a store doesn't keep products in stock but instead transfers customer orders to a third party, which ships directly to customers.

Cross-Docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with minimal to no handling or storage time.

Bulk Shipments involve large-volume orders that capitalize on economies of scale to reduce shipping and unit costs. Best suited for large, regular orders of non-perishable goods.

Cycle Counting is a systematic inventory counting method where a subset of inventory is counted on a specific day without disrupting daily operations.

Lead Time Demand is the amount of inventory needed during the lead time to meet customer demand. It's critical for determining reorder points and maintaining service levels.

VMI is a business model where the supplier assumes the responsibility of managing a retailer's inventory. Improves supply chain efficiency and reduces inventory carrying costs.

Backordering is a strategy where customers are allowed to order products even when they're out of stock, with the promise to deliver once available. Helpful when demand exceeds supply.

Demand Forecasting involves predicting future customer demand using historical data, trends, and other factors. It helps in strategic inventory planning and management.

Stock Review is the periodic assessment of inventory levels to determine restocking needs. It helps in making informed purchasing decisions.

MRP is a system used to calculate materials and components required to manufacture a product, ensuring the right quantity of supplies are available for production.