Category: Inventory Turns
Inventory
Definition: What is Inventory? Inventory includes all of the raw materials, work-in-process goods and completely finished goods listed as part of assets of a business, either ready or to be ready for sale. It is one of the most important assets for most businesses. It is the turnover of inventory that represents one of the …
Stack Racks
Definition: What are Stack Racks? Stack racks are used to hold or buffer materials during “downtimes,” as well as during periods when they are not being transported or used. These happen for numerous reasons, such as long-term transportation or storage designed to allow the buildup of stock. Materials are stacked on pallets, shelves or racks …
Min-max
Definition: What is Min-max Min-Max is a way of organizing inventory replenishment using the following simple calculation: Min value is the order point (we are running out of the goods), while Max is the quantity of the goods we need. Subtracting Min from Max we get the reorder quantity. Using this calculation is the simplest …
Kitting
Definition: What is Kitting? Filling orders by preassembling individual items into ready-to-ship kits instead of picking and packing those individual items as orders are received is known as kitting. This method offers a high rate of savings in fulfillment costs. Specifically, kitting involves a process where separate but related items are grouped, packaged, and supplied …
