| ABC inventory classification | Divides inventory into dollar volume categories that map into strategies appropriate for the category.
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| Cycle counting | A physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year.
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| Dependent demand | The need for any one item is a direct result of the need for some other item, usually an item of which it is a part.
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| Fixed–order quantity model (Q-model) | An inventory control model where the amount requisitioned is fixed and the actual ordering is triggered by inventory dropping to a specified level of inventory.
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| Fixed–time period model (P-model) | An inventory control model that specifies inventory is ordered at the end of a predetermined time period. The interval of time between orders is fixed and the order quantity varies.
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| Independent demand | The demands for various items are unrelated to each other.
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| Inventory | The stock of any item or resource used in an organization.
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| Inventory position | The amount on hand plus on-order minus backordered quantities. In the case where inventory has been allocated for special purposes, the inventory position is reduced by these allocated amounts.
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| Inventory turn | A measure of the expected number of times inventory is replaced over a year.
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| Optimal order quantity Qopt | This order size minimizes total annual cost.
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| Price-break model | This model is useful for finding the order quantity of an item when the price of the item varies with the order size.
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| Reorder point (R) | An order is placed when inventory drops to this level.
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| Safety stock | The amount of inventory carried in addition to the expected demand.
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| Single-period problem | Answers the question of how much to order when an item is purchased only one time and it is expected that it will be used and then not reordered.
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