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Third-party logistics: a company that stores your stock and ships your orders for you.
Sorting products into groups by how much they matter to your sales, so you focus attention where it counts.
An order a customer places for a product that's out of stock, to be shipped when new stock arrives.
What it costs to hold stock over time, beyond the price you paid for it.
The fixed number of units a supplier packs together, so you order in multiples of it.
What the products you sold cost you, over a set period.
How many days your current stock will last at your usual rate of sales.
Stock that hasn't sold in a long time and isn't likely to sell at full price.
Estimating how much of each product you'll sell in the coming weeks or months.
The order size that keeps the combined cost of placing orders and holding stock as low as possible.
A way of costing inventory that assumes the first units you bought are the first ones you sell.
The shipping and import tax costs of getting stock from your supplier to you.
Standard trade terms that set out who pays for shipping, insurance, and duty, and where responsibility passes from supplier to buyer.
How many times you sell through and replace your stock over a period, usually a year.
The full cost of getting a product into your stock: the supplier's price plus freight, duty, and fees.
The number of days from placing an order with a supplier to having that stock ready to sell.
Sales you miss because a product was out of stock.
The smallest number of units a supplier will accept on one order.
The amount you can still spend on new stock for a period without overbuying.
Holding more of a product than you're likely to sell in a reasonable time.
Receiving only part of a purchase order, with the rest still to come.
Checking stock at fixed intervals and ordering enough to bring each product back up to a target level.
The document you send a supplier to order stock, listing what you're buying, how much, and at what price.
The stock level at which you should place a new order, so the delivery arrives before you run out.
How many units to order when a product reaches its reorder point.
Extra stock you hold to cover the days sales run faster than average or a supplier delivers late.
Regular rises and dips in sales that repeat at the same time each year.
The share of stock you received that you sold over a set period, as a percentage.
How often you want to avoid running out of a product while waiting for a new order to arrive.
Stock keeping unit: the unique code you give each product variant so you can track it.
When a product runs out and can't be sold until new stock arrives.
Physically counting your stock and correcting the recorded numbers to match.
One version of a product, such as a particular size or color.
How many weeks your current stock will last at your usual rate of sales.
The average cost per unit of your stock, weighted by how many units you bought at each price.
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