Match the key terms with the definitions. All definitions will be used, with none left over. Costs associated with maintaining and storing inventory Designates where inventory is stored hd Allows an organization to achieve the objective of minimizing inventory The stock available for sale after consideration of stock committed to customers The sum of safety stock plus the economic order quantity quantity 1. Economic order quantity (EOQ) 2. Excess inventory report Includes creation of the PO, sending it to the vendor, handling the merchandise when received, and paying the resulting invoice 3. Free stock 4. Gross profit by product report Report that distinguishes volume and pricing effects of sales 5. Holding costs (also called carrying costs) 6. Inventory and PO aging report An order size enabling inventory holding costs and ordering costs to be equal 7. Inventory turnover report The quantity of inventory necessary to avoid the loss of sales due to stockouts 8. Just-in-time inventory 9. Lead time A report of overstocked inventory items 10. Lead-time stock 11. Location code The number of units of inventory covering sales of inventory during lead time without encroaching on the safety stock 12. Maximum stocking level 13. Order recommendations report The sum of the safety stock and the lead time stock 14. Ordering cost 15. Reorder point A report of inventory items that are at or below the reorder point 16. Returns and allowances report Focuses on shipment errors and defective merchandise sent to customers 17. Safety stock sent to customers 18. Stockout cost The period of time between the ordering of inventory and its receipt from a vendor A status report showing inventory on hand and committed, along with open POs and expected delivery dates Indicates inventory items that have not met a minimum sales expectation The contribution margin lost on sales due to stockouts