ABC Model

The average time taken by a company to pay for materials used in production after receipt. It’s a measure of the payment cycle for production inputs.

The process of managing the total quantity of items held in stock across an entire supply chain, to optimize total inventory levels and costs.

Active stock means the inventory that a business uses, refills, and moves around regularly. This stock includes items with a constant turnover rate, are consistently in demand, and require frequent restocking. Active stock differs from passive or inactive stock, including items that move slowly or are rarely used.