Definition of terms used in stores management

Shrinkage: Reductions of actual quantities of items in stock, in process, or in transit. The loss may be caused by scrap, theft, deterioration, evaporation, etc.

Spot demand: Demand with a short lead time that‘s difficult to estimate. Usually supply for this demand is provided at a premium price. An example of spot demand would be when there‘s a spiked demand for building materials as a result of a hurricane.

Stock cycle: sequence of repeated events for stock holdings; the time between consecutive replenishments

Stock-Keeping Unit (SKU): A category of unit with a unique combination of form, fit, and function (i.e., unique components held in stock).

Stocktaking: periodic checks to find differences between recorded and actual stock levels

Stock out: a situation where you have inadequate inventory levels to meet current demand.

Stocktaking: periodic checks to find differences between recorded and actual stock levels

Slotting: Store slotting is defined as the placement of products within a store. Its objective is to increase picking efficiency and reduce handling costs through optimizing product location and balancing the workload.

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