Quick Summary: This A–Z glossary defines key terms used throughout the app’s inventory planning, forecasting, and policy features. Use it as a quick-reference while reading theory shells and how-to guides to keep concepts and screen labels crystal clear.
A
Age
The number of months of history available for an item, either from its creation date or from first sale.
Allocated Stock
Stock on hand that has been set aside and is not available for general sale or use.
Available Stock
Stock on hand minus overdue demand and allocated stock. Represents what is free to sell or use.
Average Cost
The cost price of the item, used to value inventory.
B
Backorder
Quantity linked to a sales order where the expected delivery date has already passed.
Bill of Material (BOM)
List of raw materials and quantities needed to produce a finished item.
C
Classification
Grouping of items into categories (e.g., ABC/HML) based on sales or forecast contribution.
Classification Matrix
A 3×3 grid showing how items are classified by both volume and value contribution.
Cost of Sales (C.O.S.)
Average monthly value of sales at cost price over the last 12 months.
CoffeeChat
An informal, conversational training series that covers the same concepts as Inventory Essentials but in a lighter style.
Custodian
Your company’s internal app champion. They oversee onboarding, configuration, and ongoing engagement.
D
Days Cover
How long current inventory will last based on forecasted demand, assuming no new orders arrive.
Day(s) Offset
Adjustment applied to safety stock levels, measured in days.
Distribution Centre
A supply point that feeds branches or locations, itself supplied by external vendors.
E
Excess Stock
Stock levels above the maximum “Order-up-to” quantity.
Executive Dashboard
A high-level app dashboard providing performance insights for leadership.
F
Fill Rate (Achieved)
The percentage of demand fulfilled without stock-outs over the last 30 days.
Fill Rate (Target)
The desired level of stock availability.
Fill Rate Impact
How much an item reduces overall location fill rate when it goes below 100%.
Forecast History
Record of forecast attempts for an item over the last 12 months.
Forecasting Performance
Measure of historical over- and under-forecasting.
Forecast Risk
Percentage risk based on historic differences between forecasted and actual demand.
G
Nothing yet
H
Hits
Number of months in the past year an item sold.
I
Inventory Essentials
A structured, three-pillar training series covering app basics, classification, forecasting, and replenishment.
In-App Tour
A guided walkthrough inside the app to explain a screen or feature.
J
Nothing yet
K
Nothing yet
L
Last Import Date
The most recent date the app processed data from your ERP system.
Lead Time
Time between placing an order and stock being available.
Lead Time Performance
Measure of supplier reliability (early/late deliveries).
Learn Step
The stage of onboarding focused on structured training, Learn Tasks, and certification.
Learn Task
An exercise in SIMON where you apply training concepts to your company’s own data.
Look Forward Days
The number of future days’ worth of orders to include in today’s recommended order.
Lost Sales
Value of forecasted demand that cannot be met due to stock-outs.
M
Margin
Difference between selling price and average cost.
Minimum Order Quantity (MOQ)
Vendor-imposed minimum purchase amount per order.
Model Stock
Average level of stock over a replenishment cycle, balancing safety stock and demand.
N
Net Stock
Stock on hand minus backorders and allocations, plus open purchase orders.
Non-Stocked Item
An item not held in inventory but available for order if needed.
O
Obsolete Item
An item with no sales for an extended period (typically 24 months).
On Order
Quantity from outstanding purchase orders.
Order Multiple
Vendor-imposed rule requiring orders in set multiples.
Order-up-to Level
Maximum inventory level needed for optimization (Lead Time + Safety Stock + Replenishment Cycle).
Overdue Purchase Order
An open order past its expected arrival date.
Over-Forecasting
When forecasts exceed actual sales, leading to excess stock.
P
Potential Stock-Out
A situation where stock is projected to reach zero before replenishment arrives.
Products Supplied
Number of product codes linked to a vendor.
Period to Date (PTD)
Period from the start of the current month to the last import date.
Purchase Order (PO)
Quantity ordered from a supplier, expected now or in future.
Q
Nothing yet
R
Recommended Order
The system-calculated quantity that results in optimal inventory levels.
Re-Order Level
Minimum stock needed before triggering replenishment.
Replenishment Cycle
Period of time stock should cover when a recommended order is placed.
Review Session
A guided session (with a CSC, Custodian, or peer) to apply learning and ask advanced questions.
S
Safety Stock
Extra stock held to protect against uncertainty in demand or supply.
Selling Price
Price at which an item is sold, used for calculating margin.
Stocked Item
An item actively held in inventory to meet demand.
Stocked Out
When available stock drops to zero or below.
Stock Turns
How many times you sell through your inventory in 12 months.
Support+
Paid service for advanced training, consulting, technical changes, and ongoing optimization.
Surplus Orders
Orders that push stock above the maximum level.
Supply Performance
Measurement of supplier delivery accuracy.
Supply Risk
Risk of early/late deliveries based on history.
T
Target
A set level or KPI to be achieved.
Turns
Another measure of stock rotation in a year (same as stock turns).
U
Under-Forecasting
When forecasts fall short of actual sales, leading to stock-outs.
V
Velocity
The rate at which units are sold.
W
Weighted Cover
Weighted average of days-on-hand vs. stock value, showing which items impact turns most.
Watchout
Highlighted caution for users, showing where mistakes may occur.
X
Nothing yet
Y
Nothing yet
Z
Zero Policy Item
A make-to-order item with no planned inventory holding. Forecast demand flows down to raw materials instead.
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