The stock of goods that is required from one supply replenishment to the next. The stock of goods that is in transit between locations. Stocks of goods above and beyond pipeline inventory that are used to cover projected trends of increasing demands. A quantity of inventory kept on hand to protect against fluctuations in demand or supply. An inventory accuracy audit technique where different classes of inventory are counted on different time intervals. Stocks of goods, beyond safety stock, to buffer against unknown future events that may or may not happen.1. Hedge Inventory2. Anticipation Inventory3. Cycle Counting4. Safety Stock5. Pipeline Inventory6. Cycle Inventory
Question
The stock of goods that is required from one supply replenishment to the next. The stock of goods that is in transit between locations. Stocks of goods above and beyond pipeline inventory that are used to cover projected trends of increasing demands. A quantity of inventory kept on hand to protect against fluctuations in demand or supply. An inventory accuracy audit technique where different classes of inventory are counted on different time intervals. Stocks of goods, beyond safety stock, to buffer against unknown future events that may or may not happen.1. Hedge Inventory2. Anticipation Inventory3. Cycle Counting4. Safety Stock5. Pipeline Inventory6. Cycle Inventory
Solution
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Cycle Inventory: This is the stock of goods that is required from one supply replenishment to the next. It is the inventory that is most frequently turned over in the course of business operations.
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Pipeline Inventory: This refers to the stock of goods that is in transit between locations. It is the inventory that is currently in the supply chain, either being produced or being moved from the supplier to the customer.
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Anticipation Inventory: These are stocks of goods above and beyond pipeline inventory that are used to cover projected trends of increasing demands. This type of inventory is held to buffer against forecasted increases in demand or decreases in supply.
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Safety Stock: This is a quantity of inventory kept on hand to protect against fluctuations in demand or supply. It is a reserve of goods that can be used to mitigate the risk of stockouts caused by uncertainties in supply and demand.
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Cycle Counting: This is an inventory accuracy audit technique where different classes of inventory are counted on different time intervals. It is a method of checking inventory accuracy by counting a small amount of inventory in specific locations on a regular basis.
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Hedge Inventory: These are stocks of goods, beyond safety stock, to buffer against unknown future events that may or may not happen. This type of inventory is held as a precautionary measure against unforeseen events such as strikes, price increases, or supply disruptions.
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