Industry Terms

FIFO stands for first-in-first-out. It is a method of inventory management and valuation in which goods produced or acquired first are sold, used, or disposed of first. In other words, goods are sold in the order they were received and subsequent shipments of the same item go to the back of the line. For reporting […]

In an Inventory control system, a predetermined order quantity of products delivered in a variable time frame is a fixed reorder quantity. Whenever the stock level reaches the fixed minimum inventory levels, a retailer reorders the stock of that particular product. Such a reordering point of products that is fixed previously is called a fixed […]

The tendency to forecast higher or lower than the actual demand

Difference or error between forcasted value and actual demand

Definition Forecasting in layman terms is planning for the future. Forecasting is a technique which signifies estimating for future needs of many aspects of the business. This could entail inventory forecasting, marketing budget, material planning for production and distribution and many more. Forecasting is carried out in small and medium organizations alike according to the […]