Stock norm

Stock norm

1) A ratio of stock to, for example, sales, set as a standard and expressed as a percentage, or as a factor or as a number of days, weeks or months. The stock norm is determined by taking into account the:

- Safety stock.

- Production batch stock or shipment batch stock.

- Normal seasonal stock.

- Normative pipeline stock.

- Stock on order.

The quantity represented by the total of all out-standing orders for a particular item. The on order balance increases when a new order is released and decreases when an order is received or cancelled. (Source: ILT Supply-Chain Inventory Management SIG)

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.232 (288 p.)