ABC analysis
A way to group items by chosen importance measures such as value, movement, criticality or error risk.
Plain-English reference
Inventory and material-management glossary
Common terms used across planning, warehousing, retail, wholesale, maintenance support and inventory systems. Local organizations may define some terms differently.
Adjustment
An approved change to the recorded balance or status, ideally with a documented reason.
Allocation
Quantity reserved or committed to a known requirement.
Available stock
Stock that is serviceable, uncommitted and permitted for the intended use.
Backorder
An unmet quantity that remains due to a customer, location or internal requirement.
Book stock
The quantity recorded in the inventory system or ledger.
Carrying cost
The annual cost associated with holding inventory, including capital, space, handling and risk.
Cycle count
A scheduled count of selected inventory rather than one complete annual stocktake.
Dead stock
Inventory with little realistic prospect of use, sale, transfer or return.
Economic order quantity
A classic model balancing order cost and holding cost under simplified assumptions.
In transit
Stock dispatched from one location but not yet received and accepted at another.
Inventory shrinkage
A shortage between expected and verified physical stock after known causes are considered.
Lead time
The elapsed time from a planning or order point until usable stock is available.
Lot or batch
A group of items sharing a production, receipt or traceability identifier.
Master data
Controlled item, unit, supplier, location, status and planning information used by transactions.
On hand
Physical or recorded possession, which may include unavailable statuses.
Quarantine
A controlled status for material awaiting a decision, inspection, document or release.
Repairable
An unserviceable item expected to enter an approved repair process.
Reorder point
A stock trigger for beginning replenishment, commonly based on lead-time demand plus a buffer.
Return to inventory
Material coming back from a customer, job, user, repair process or another custody point.
Safety stock
An intentional inventory buffer for uncertainty.
Serviceable
Approved as ready for intended use or issue.
Shelf life
The controlled period during which material may remain usable under specified conditions.
Stocktake
A physical count used to verify recorded inventory.
Transfer
A controlled movement between locations, usually with an in-transit stage.
Unit of measure
The unit in which quantity is recorded, purchased, stored or issued.
Variance
The difference between recorded and verified quantity or value.
Write-off
An approved removal of quantity or value from active records.