Technology & Inventory Software Flashcards

Which inventory software feature automatically triggers purchase orders when stock falls below a set threshold?

Answer: Reorder point automation

Reorder point automation generates purchase orders when on-hand inventory drops below the predefined reorder point level.

In a Warehouse Management System (WMS), what does 'slotting optimization' refer to?

Answer: Assigning storage locations to maximize picking efficiency

Slotting optimization assigns SKUs to storage locations based on velocity, weight, and pick frequency to reduce travel time.

Which EDI transaction set is used to send a Purchase Order from a buyer to a supplier?

Answer: EDI 850

EDI 850 is the standard transaction set for transmitting a Purchase Order electronically from buyer to supplier.

A company implements RFID at the pallet level rather than the item level. What is the PRIMARY trade-off?

Answer: Lower cost vs. less granular inventory visibility

Pallet-level RFID reduces tag and implementation costs but sacrifices item-level tracking granularity.

Which technology enables real-time inventory synchronization across multiple sales channels (e-commerce, retail, wholesale)?

Answer: Omnichannel inventory management software

Omnichannel inventory management platforms sync stock levels across all channels in real time to prevent overselling.

What is the function of an API integration between an inventory system and an e-commerce platform?

Answer: Enables automatic bidirectional data exchange without manual entry

API integration allows the inventory system and e-commerce platform to exchange order, stock, and fulfillment data automatically in real time.

In inventory software, what does the term 'ATP' (Available to Promise) calculate?

Answer: Quantity available for new customer orders after existing commitments

ATP calculates the uncommitted inventory balance available to promise for new orders, considering current stock and scheduled receipts minus existing commitments.