The on-hand inventory balance minus allocations, reservations, backorders, and (usually) quantities held for quality problems. Often called beginning available balance. Syn: beginning available balanc e, net inventory....
The number of hours a work center can be used, based on management decisions regarding shift structure, extra shifts, regular overtime, observance of weekends and public holidays, shutdowns, and the l ike. See: capacity available, utilization....
1) In operations, the uncommitted portion of a company's inventory and planned production maintained in the master schedule to support customer-order promising. The ATP quantity is the uncommitted inv entory balance in the first period and is normally calculated for each period in which an MPS receipt is scheduled. In the first period, ATP includes on-hand inventory less customer orders that are du e and overdue. Three methods of calculation are used: discrete ATP, cumulative ATP with look-ahead and cumulative ATP without look-ahead. (2) In logistics, the quantity of a finished good that is or w...
in cost accounting, a method of inventory valuation for accounting purposes. A weighted average (based on quantity) of item cost is used to determine the cost of goods sold (income statement) and inve ntory valuation (balance sheet). Average cost provides a valuation between last-in, first-out and first-in, first-out methods. See: first in, first out; last in, first out...
One-half the average lot size plus the safety stock, when demand and lot sizes areexpected to be relatively uniform over time. The average can be calculated as an average of several inventory observa tions taken over several historical time periods; for example, 12-month ending inventories may be averaged. When demand and lot sizes are not uniform, the stock level versus time can be graphed to det ermine the average....