Supply Chain Management main glossary
This is a glossary of key terms used throughout the site.
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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.
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 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 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.