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FIFO

FIFO stands for first in and first out. An accounting stardard according to which older stocks are sold first followed by the newer ones

Finished Goods

Goods that are are ready to be sold to the customer

Finished Goods

The flow of content: Definition How to calculate Finished Goods Why is it important to calculate Finished Goods Those goods that are completed by the manufacturing process and are ready to be sold to the retailers or end customers are called ‘Finished Goods’.  However, once the finished goods are sold they are called merchandise.  ‘Finished […]

Fixed Reorder Point

A predertmined order quantity delivered in a variable time frame

Forecast Bias

The tendency to forecast higher or lower than the actual demand

Forecast Error

Difference or error between forcasted value and actual demand

Forecasting

Definition Forecasting in layman terms is planning for the future. Forecasting is a technique which signifies estimating for future needs of many aspects of the business. This could entail inventory forecasting, marketing budget, material planning for production and distribution and many more. Forecasting is carried out in small and medium organizations alike according to the […]