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Obsolete Inventory
Inventory for which there is no forecast demand
expected. A condition of being out of date. A loss of value
occasioned by new developments that place the older property
at a competitive disadvantage.
On-Hand Balance
The quantity shown in the inventory records as being
physically in stock. On order: The quantity of goods that has
yet to arrive at a location or retail store. This includes all
open purchase orders
including, but not limited to, orders in transit, orders being
picked, and orders being processed through customer service.
Open-to-Buy
A control technique used in aggregate inventory management
in which authorizations to purchase are made without being
committed to specific suppliers. These authorizations are
often reviewed by management using such measures as commodity
in dollars and by time period.
Open-to-Receive
Authorization to receive goods, such as a blanket release,
firm purchase order item, or supplier schedule.
Open-to-receive represents near-term impact on inventory, and
is often monitored as a control technique in aggregate
inventory
management. The total of open-to-receive, other longer term
purchase commitments and open-to-buy represents the material
and services cash exposure of the company.
Order Cycle
The time and process involved from the placement of an
order to the receipt of the shipment.
Order Point – Order Quantity System
The inventory method that places an order for a lot
whenever the quantity on hand is reduced to a predetermined
level known as the order point. Also see: Fixed Reorder
Quantity Inventory Model, Hybrid system
Order Processing
Activities associated with filling customer orders.
Original Equipment Manufacturer (OEM)
A manufacturer that buys and incorporates another
supplier’s products into its own products. Also, products
supplied to the original equipment manufacturer or sold as
part of an assembly. For example, an engine may be sold to an
OEM for use as that company’s power source for its generator
units.
Out Of Stock
The state of not having inventory at a location and
available for distribution or for sell to the consumer (zero
inventory).
Outbound Consolidation
Consolidation of a number of small shipments for various
customers into a larger load. The large load is then shipped
to a location near the customers where it is broken down and
then the small shipments are distributed to the customers.
This can reduce overall shipping charges where many small
packet or parcel shipments are handled each day.
Outbound Logistics
The process related to the movement and storage of products
from the end of the production line to the end user |
