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EOQ is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.

JIT is an inventory management system in which materials are purchased and produced only as needed to meet actual customer demand.

This technique categorizes inventory into three classes (A, B, C) based on their importance and value, with 'A' being the most valuable and 'C' the least.

Safety stock is additional inventory kept to prevent stockouts typically caused by variations in supply and demand.

ROP is the level of inventory at which a new order should be placed to replenish stocks before it hits a critical level.

Demand forecasting involves predicting customer demand over a specific period using historical data, market trends, and statistical models.

Lead time is the time gap between the initiation of an order and its delivery. It's key to calculate reorder points and safety stocks.

Cycle inventory is the portion of inventory that a company plans to sell during a single business cycle, often determined by the EOQ.

Batch tracking follows the lifecycle of a specific batch of products from production to delivery, useful for tracing defects and managing recalls.

Supplier management involves strategies to ensure that suppliers and their performances align with the business objectives, including aspects like quality, delivery, and cost.

Cross-docking is a logistics practice where incoming shipments are directly transferred onto outgoing vehicles, with minimal storage time in between.

This ratio measures how often inventory is sold and replaced over a period, high turnover indicates strong sales or ineffective buying.

Consignment inventory remains the property of the supplier until it is sold by the retailer, which reduces risk and inventory costs for the retailer.

Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, it purchases items from a third party and has them shipped directly to the customer.

A perpetual inventory system constantly updates inventory records for each transaction in real-time through the use of automated software.

Bulk shipments are large-scale shipments that typically require the entire capacity of a container, truck, or another carrier, often used for raw materials.

Backordering is the process of allowing customers to place orders for items that are not currently in stock, with the understanding that the item will be shipped when it becomes available.

VMI is an inventory management practice in which the supplier assumes the responsibility for maintaining the inventory levels.

Service level is a measure of the performance of a system and is typically defined as the probability that the demand for an item will be met without stockouts.