Chapter 7 SCM

2. items held by a firm to meet demand
4. ___ stock are items being transported from one location to another
6. ___ stock is additional inventory produced in advance of seasonal peek demands
13. ___ stock is repeatedly produced inventory to fill demand in normal replenishment cycles
14. ___ stock is inventory purchased/produced to hedge against future price increases or shortage

1. ___ law says that a small percentage of the items account for a large percentage of sales
3. The order quantity that minimizes the sum of annual inventory carrying cost and annual ordering cost
5. ___ stock is extra inventory held to guard against uncertainty in demand or supply
7. ___ cost is a transaction cost associated with replenishing inventories
8. ___ analysis is a ranking of all items of inventory according to importance
9. The minimum level of inventory that triggers the need to order more
10. sum of all relevant inventory costs incurred each year
11. The ___ effect occurs when a small change in demand at the end-customer level of a supply chain results in increasingly large changes in the upstream supply chain
12. An event that occurs when there is demand for an item and no inventory available