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4.02 Key Terms

TermDefinition
Bottom line: A business’s net income; the decisive point.
Holding cost: The money it takes to keep inventory in stock.
Inputs: In the operations function—resources utilized.
Inventory: All the stock that a business has on hand.
Inventory control: Tracking the amount, the kind, and the value of inventory that a business has on hand.
Logistics: Refers to managing the flow of goods and services from production to consumption.
Operations: The day-to-day activities for continued business functioning.
Outputs: In the operations function - goods or services.
Purchasing: The buying of goods and services for a business.
Quality control: Ensuring the degree of excellence of a good or service.
Routing: The production activity that determines the sequence of the steps in the production process.
Scheduling: The production activity that establishes the timetable to be followed in production.
Timing: In the production process, determining when materials will arrive at a certain destination and how long they will stay there.
Created by: gisela.f538
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