Solution
Warehouse glossary: inventory terms explained simply
What do minimum stock, SKU or FIFO actually mean? Our warehouse glossary explains the most important inventory management terms briefly and clearly – always with a direct link to everyday practice.
Sound familiar?
- Technical terms are unclear and explained differently everywhere.
- You want to understand quickly, without a textbook.
How Lavesy helps
Minimum stock
The quantity at which you should reorder so you never run out.
Target stock
The quantity an item is ideally replenished to.
SKU
Unique item number (Stock Keeping Unit) used for identification.
Stocktaking
Counting actual stock and reconciling it with the system.
How it works
- 1FIFO: first in, first out – take older goods first.
- 2Goods receipt: accepting and posting delivered goods.
- 3Stock movement: every posting in/out with user and time.
- 4Storage bin: the concrete place (zone/aisle/shelf/bin) of an item.
Frequently asked questions
What is the difference between minimum stock and target stock?
The minimum stock triggers the reorder; the target stock is the quantity the item is replenished to.
What is a SKU?
A SKU is a unique item number used to identify an item in your warehouse.
What does FIFO mean?
FIFO (first in, first out) means the goods stored first are taken first – important for shelf life.
What is Datanorm?
A data format German wholesalers use to deliver item master data and prices to trade businesses – mainly in electrical and plumbing.
What is a batch?
A quantity of an item with shared production or delivery characteristics, e.g. the same best-before date, identified by a batch number.