GLOSSARY

Inventory planning terms, defined plainly.

Reference definitions used across Nerqel calculators, planning pages and decision workflows.

ABC classification

A prioritization method that groups inventory by importance, often using cumulative demand or value.

How long available inventory is expected to last at the current demand rate.

The elapsed time between placing a replenishment order and receiving usable inventory.

The inventory position at which replenishment should be triggered.

Additional inventory held to protect against uncertainty in demand or replenishment.

A state where available inventory cannot satisfy demand.

Inventory materially above expected operational demand or target coverage.

Economic order quantity: a classical model balancing ordering and holding costs.