Inventory glossary
Plain-language definitions of the inventory terms that come up when you track stock.
- ABC analysis
Ranking items by value so you focus effort where it matters.
- COGS
Cost of goods sold: what the items you sold cost you.
- Cycle count
Counting a small part of your stock on a regular schedule instead of all at once.
- Inventory turnover
How many times you sell through your average stock in a period.
- Lead time
The time between placing an order and receiving it.
- Reorder point
The stock level that triggers a new order.
- Safety stock
Extra stock held to cover demand spikes or late deliveries.
- SKU
A stock keeping unit: the unique code that identifies one specific item you track.