INVENTORY MANAGEMENT

( VOCABULARY)

LEAD TIME :
IS THE TIME BETWEEN THE
PLACEMENT OF THE ORDER
AND THE DELIVERY OF THE
GOODS.
BUFFER STOCK IS THE
MINIMUN STOCK USED TO
COVER SHORTAGES AND
HIGH DEMAND
FACTORY GATE PRICE
IS THE PRICE AT THE
FACTORY THAT IS NOT
INCLUDED TRANSPORT
COST
ECONOMIES OF SCALE
IS THE REDUCTION IN COST
PER UNIT BECAUSE OF AN
INCREASED PRODUCTION
TENDER
PUBLIC OFFER MADE BY
AN OFFICIAL BODY ( THE
GOVERNMENT)