Supply Chain Management main glossary


This is a glossary of key terms used throughout the site.

Browse the glossary using this index

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B

Batch

A batch or a lot is a defined quantity of products (with its packaging) which went through a single production process and thus is expected to be homogeneous. The size of a batch depends on a fixed quantity, or the amount produced in a fixed time interval.


Batch number

A batch number or lot number is a unique combination of numbers and/or letters given to a batch and its corresponding labels, certificate of analysis, and other documentation.


Batch release

A batch release or lot release is a procedure by which different batches are tested to assess if they meet all the required product specifications as defined by the relevant standards.


Bid security

Bid security is a form of financial guarantee where the bidder is required to make a deposit at the time of submission of a bid or tender. Bid security is a safeguard against withdrawal of bids before the end of the bid validity period or a refusal to sign the contract.


Buffer stock

Buffer stock or safety stock is the amount of stock that is kept in reserve in case an item is unavailable from the supplier or a sudden increase in demand occurs. This amount may be determined as x times the average monthly consumption, or calculated as a percentage of the annual quantity consumed, depending on the country and system.