Inventory
Abbreviations
General Inventory Terms
SKU (Stock Keeping Unit) – A unique identifier for each
product.
UPC (Universal Product Code) – Barcode for retail
tracking.
EAN (European Article Number) – International barcode
system.
PLU (Price Look-Up Code) – Used for identifying produce
and bulk items.
GTIN (Global Trade Item Number) – A unique identifier for
trade items globally.
MPN (Manufacturer Part Number) – Unique code
assigned by a manufacturer to a specific part.
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General Inventory Terms
ISBN (International Standard Book Number) – A unique
identifier for books.
ASIN (Amazon Standard Identification Number) – A
unique identifier for Amazon products.
FNSKU (Fulfillment Network Stock Keeping Unit) – Used
in Amazon warehouses.
HSN (Harmonized System of Nomenclature) –
Classification code for goods used in customs.
BOM (Bill of Materials) – A list of raw materials,
components, and subassemblies needed for production.
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Basic Inventory Terms
BOM – Bill of Materials (list of components needed to
produce a product).
COGS – Cost of Goods Sold (total cost of producing goods
sold).
E&O – Excess and Obsolete Inventory (unsold or outdated
inventory).
EIR – Equipment Interchange Receipt (document for
inventory movement tracking).
FOQ – Fixed Order Quantity (constant quantity ordered
each time)
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Basic Inventory Terms
GR/IR – Goods Receipt/Invoice Receipt (accounting
process for inventory transactions).
IM – Inventory Management (tracking and controlling stock
levels).
IV – Inventory Variance (difference between recorded and
actual inventory).
LOT – Lot Number (batch identification for inventory
items).
MSL – Minimum Stock Level (lowest inventory level before
reordering).
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Inventory Management Metrics
EOQ (Economic Order Quantity) – The optimal order
quantity to minimize costs.
ROP (Reorder Point) – The inventory level at which a new
order should be placed.
LT (Lead Time) – The time taken for replenishment after
an order is placed.
DOH (Days on Hand) – The number of days current
inventory can last.
DIO (Days Inventory Outstanding) – The average number
of days inventory is held before being sold.
TAT (Turnaround Time) – The time taken to fulfill an
order or process inventory.
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Inventory Management Metrics
ICR (Inventory Carrying Rate) – The cost of holding
inventory as a percentage of total inventory value.
ISS (Inventory Service Level) – The percentage of
customer demand fulfilled from available inventory.
SL (Service Level) – A measure of inventory availability to
meet customer demand.
COV (Coverage) – The number of days current stock can
cover expected demand.
ITR (Inventory Turnover Ratio) – The number of times
inventory is sold and replaced in a given period.
PTD (Planned Time of Delivery) – Estimated time of
receiving inventory replenishment.
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Inventory Control & Optimization
JIT (Just-In-Time) – Inventory strategy to reduce
stockholding costs.
MRP (Material Requirements Planning) – A system for
calculating materials needed for production.
VMI (Vendor-Managed Inventory) – Suppliers manage and
replenish customer inventory.
ABC (ABC Analysis) – A categorization method based on
value and importance.
SLOB (Slow Moving and Obsolete Inventory) – Inventory that
is moving slowly or is obsolete.
DRP (Distribution Requirements Planning) – A system for
planning inventory replenishment across a network.
EPI (Excess and Obsolete Inventory) – Inventory that
exceeds demand or is outdated.
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Inventory Control & Optimization
MOQ (Minimum Order Quantity) – The lowest quantity a
supplier allows for purchase.
SS (Safety Stock) – Extra inventory kept to prevent
stockouts.
BOH (Balance on Hand) – The quantity of inventory
physically available.
ATP (Available to Promise) – The quantity of inventory
available for new orders.
FMI (Finished Goods Inventory) – Completed products
ready for sale.
RMI (Raw Material Inventory) – Unprocessed materials
waiting for production.
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Warehouse & Distribution
WMS (Warehouse Management System) – Software for
managing warehouse operations.
RFID (Radio Frequency Identification) – Technology for
tracking inventory with radio signals.
ASN (Advanced Shipping Notice) – A supplier
notification before goods arrive.
DC (Distribution Center) – A warehouse for storing and
shipping inventory.
FCL (Full Container Load) – A shipment that fills an
entire container.
LCL (Less than Container Load) – A shipment that
shares a container with other goods.
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Warehouse & Distribution
EDI (Electronic Data Interchange) – A system for
automated inventory data exchange between
businesses.
CBM (Cubic Meter) – Measurement used for inventory
volume in warehouses.
LPN (License Plate Number) – A unique identifier
assigned to pallets or containers.
LUM (Location Utilization Metric) – A measure of
warehouse space efficiency.
TMS (Transportation Management System) – A
software solution for optimizing freight and shipping.
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Demand Planning & Supply Chain Analytics
IBP (Integrated Business Planning) – A process aligning supply
chain operations with financial planning.
S&OP (Sales and Operations Planning) – A process balancing
supply and demand.
DDMRP (Demand-Driven MRP) – A planning approach based on
demand signals.
CFA (Cross-Functional Analysis) – A method for optimizing
inventory across departments.
DPA (Demand Planning Accuracy) – A measure of how
accurately demand forecasts match actual sales.
SIS (Stock in Supply Chain) – Inventory held across different
supply chain nodes.
CFIA (Customer-Facing Inventory Availability) – Inventory that
is available to fulfill customer orders.
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