GLOSSARY
Allocated inventory (ALI) Untouchable inventory set aside for and dedicated to specific customers, channels, purposes, and/or business units.
Annual demand (AD) The number of units requested for an item during a year. It looks backward over the prior year and is strictly historic.
Assemble to order (ATO) An inventory, logistics, and supply chain concept made famous by Dell Computer in which assembly is delayed or postponed until an order is received.
Available inventory (AVI) On-hand inventory minus allocated or committed inventory:
AVI = OHI − ALI or AVI = OHI − CMI
Average inventory level (AIL) The average number of units in inventory, including safety stock inventory, lot size inventory, and lead time inventory:
AIL = SSI + (LS/2) ...
Get Inventory Strategy: Maximizing Financial, Service and Operations Performance with Inventory Strategy now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
