Over the past five weeks, I’ve covered five important inventory management terms that every business owner should be familiar with.
Carrying Cost – The amount of money a company spends to keep inventory safe and stored over a certain length of time. It is also known as holding cost and inventory cost.
Batch Picking – The act of obtaining products from a warehouse to complete a group of orders made by customers.
Cycle Counting – The act of checking the number of products currently in stock in a warehouse, usually done on a daily or weekly basis.
Costing Method – The way that a final product’s total cost is calculated.
Lead Time – The length of time between when an item is ordered and when it is added to a company’s inventory.
Now that I’ve covered some basics, I’m going to delve into more complex inventory management processes that use the above terms, and many others, to help businesses be more efficient.
You won’t want to miss it.
Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks, and small business. Fishbowl is the #1-requested manufacturing and warehouse management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies.