Slogans That Save

Acronym

Saying 

Definition

ABC

Always Better Control

Classification method for inventory items based on their value and importance.

AEOQ

Average Economic Order Quantity 

Average quantity that minimizes the total cost of ordering and holding inventory.

ARO

Average Reorder Opportunity 

Average number of units sold between reordering.

ATP

Available-to-Promise

The quantity of inventory available to fulfill customer orders.

BOM

Bill of Materials

A bill of materials (BOM) is a centralized source of information like a recipe containing a list of items used to manufacture a product and the instructions on how to do so.

CPG

Consumer Packaged Goods 

Fast-moving consumer goods like food, beverages, toiletries, etc.

DC

Distribution Center 

A warehouse used to store and distribute products.

DIFOT 

Delivery In Full, On Time 

Measure of delivery performance

EOQ

Economic Order Quantity 

The optimal order quantity that minimizes total inventory costs.

FIFO

First-In, First-Out

An inventory valuation method where the oldest items are sold or used first.

JIT

Just-In-Time 

An inventory management approach that aims to receive goods only as they are needed.

KPI

Key Performance Indicator 

A measurable value indicating how effectively a company is achieving its objectives.

LIFO

Last-In, First-Out 

An inventory valuation method where the most recent items are sold or used first.

SKU

Stock Keeping Unit 

A unique identifier for an individual item in inventory.

TCO

Total Cost of Ownership

The total cost of an asset over its entire life cycle.

TQM

Total Quality Management 

A management approach focused on continuous improvement of quality.

UPC 

Universal Product Code 

A barcode used to identify products.

WMS

Warehouse Management System

Software used to manage and control warehouse operations.

RFID 

Radio Frequency Identification 

Technology used for tracking inventory using radio waves.

ROP

Reorder Point 

Inventory level at which a new order should be placed.

Acronym

Saying 

Meaning 

RFI

Request for Information

A document used to collect information from potential suppliers.

RFQ

Request for Quotation 

A document used to request price quotes from suppliers.

MOQ

Minimum Order Quantity 

The smallest quantity of a product that a supplier is willing to sell.

OOS

Out of Stock

When an item is not available for immediate purchase.

POS

Point of Scale 

The location where a transaction takes place, often a cash register or checkout counter.

VMI

Vendor Managed Inventory 

Inventory management system where the supplier manages the inventory at the customer's location.

ERP

Enterprise Resource Planning.

Refers to a type of software system that integrates various business processes and functions within an organization into a unified and centralized platform.

MRP

Material Requirements Planning 

It is a system used in manufacturing and production environments to plan and manage the procurement and use of materials required for production. 

IMS 

Inventory Management System 

Software tool used to track and manage inventory levels, stock movements, and supply chain operations in businesses.

OMS

Order Management System

An order management system (OMS) simplifies the sales process from order creation to delivery, for all sales channels.

UPC

Universal Product Code 

Standardized barcode system widely used in retail and inventory management to uniquely identify products.

CRM

Customer Relationship Management 

While CRM primarily relates to managing and nurturing customer relationships, it can indirectly impact inventory management in various ways.