Managing inventory the right way can be the difference between running a profitable operation and dealing with endless stock-outs or excess. Whether you’re new to supply chain, a store manager, a warehouse coordinator, or just brushing up your knowledge, these 20 must-know inventory terms will help you stay ahead of the game. Top 20 Inventory Management Terms You Should Know: 01. Inventory Turnover – How often you sell and replace stock in a time period. 02. Safety Stock – Extra inventory kept to avoid running out during demand spikes. 03. Lead Time – The time between placing an order and receiving it. 04. Reorder Point – The stock level that triggers a new order. 05. Stock Keeping Unit (SKU) – A unique code for each product/item in inventory. 06. Cycle Counting – Regular counting of portions of inventory without doing a full count. 07. Dead Stock – Inventory that doesn’t sell and just sits in storage. 08. Demand Forecasting – Predicting future inventory needs based on data. 09. Backorder – Orders placed for items currently out of stock. 10. Just-in-Time (JIT) – A method where goods are received only when needed. 11. First-In, First-Out (FIFO) – Selling or using the oldest stock first. 12. Last-In, First-Out (LIFO) – Selling or using the newest stock first. 13. Carrying Cost – The total cost of holding inventory (storage, insurance, etc.). 14. Order Quantity – The number of units you order at one time. 15. Economic Order Quantity (EOQ) – The ideal order amount that minimizes total costs. 16. Obsolete Inventory – Products no longer sellable or usable. 17. Batch Tracking – Managing inventory based on production batches for traceability. 18. Perpetual Inventory System – Continuously updating inventory counts after every transaction. 19. Physical Inventory – Manual counting of all inventory items at a point in time. 20. Vendor-Managed Inventory (VMI) – When a supplier handles your inventory levels for you. Mastering inventory terms isn't just "nice to have", it’s a game-changer for making smarter, faster, and more profitable decisions. The more fluent you are in this language, the better you’ll manage stock, reduce costs, and keep operations smooth! Which inventory term do you use the most in your daily work? Drop it in the comments! | 27 comments on LinkedIn