| Cycle Counting | A physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year. |
| 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. |
| Fixed-Order Quantity Model (or Q-Model) | An inventory model where the amount requisitioned is fixed and the actual ordering is triggered by inventory dropping to a specified level of inventory. |
| Fixed-Time Period Model (or 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. |
| Independent Demand | The demands for various items are unrelated to each other. |
| Inventory | The stock of any item or resource used in an organization. |
| Inventory Position | The amount on-hand plus on-order minus back ordered quantities. In the case where inventory has been allocated for special purposes, the inventory position is reduced by these allocated amounts. |
| Safety Stock | Amount of inventory carried in addition to the expected demand. |
