Definition: The Conditioning Theory refers to the behavioral process, whereby a reaction (response) becomes more frequent to a given object (stimulus) as a result of reinforcement, which is a reward for the response in a given situation. In other words, conditioning is a process in which the ineffective object or event becomes so much effective that it makes the hidden … [Read more...] about Conditioning Theory
Theories of Learning
Definition: The Learning is the enduring change in the behavior brought about as consequences of experience. Simply, learning is the acquisition of new behaviors. It is agreed that learning involves changes in the behavior, that we practice in our daily lives and which becomes a permanent part of our existing set of behaviors. Several experts are still skeptical about the … [Read more...] about Theories of Learning
Motives for Holding Cash
Definition: The Motives for Holding Cash is simple, the cash inflows and outflows are not well synchronized, i.e. sometimes the cash inflows are more than the cash outflows while at other times the cash outflows could be more. Hence, the cash is held by the firms to meet the certain as well as uncertain situations. Motives for Holding Cash Majorly there are three motives for … [Read more...] about Motives for Holding Cash
Cash Management
Definition: The Cash Management is concerned with the collection, disbursement and the management of cash in such a way that firm’s liquidity is maintained. In other words, it is concerned with managing the cash flows within and outside the firm and making decisions with respect to the investment of surplus cash or raising the cash from outside for financing the deficit. The … [Read more...] about Cash Management
Fixed Period Ordering
Definition: The Fixed Period Ordering is an inventory control system, wherein the order for the replenishment of inventory items is sent periodically or after a fixed time interval. It is also called as Fixed Period Deficit Ordering system, because every time the order is placed, the order quantity is different. Thus, fixed period ordering is a method wherein the firm places … [Read more...] about Fixed Period Ordering
Fixed Order Quantity
Definition: The Fixed Order Quantity is the inventory control system, wherein the maximum and minimum inventory levels are fixed, and maximum and fixed amount of inventory can be replenished at a time when the inventory level reaches the auto set reorder point or the minimum stock level. In other words, an auto-reorders point is linked with the pre-fixed amount of inventory … [Read more...] about Fixed Order Quantity
Computerized Inventory Control System
Definition: A Computerized Inventory Control System is the integration of sub-functions involved in the management of inventory into a single cohesive system. It is software installed on the computer systems that enables a firm to keep a check on the inventory levels by performing the automatic counting of inventories, recording withdrawals and revising the stock balance. It … [Read more...] about Computerized Inventory Control System
Outsourcing Inventory System
Definition: The Outsourcing Inventory System is adopted by the firms to reduce the burden of manufacturing the components of the finished goods in-house i.e. within the organization. Thus, a system of buying the products or components from outside vendors rather than manufacturing internally is called as Outsourcing Inventory system. Many companies develop a single source of … [Read more...] about Outsourcing Inventory System
Just-in-Time System
Definition: The Just-in-Time or JIT is an inventory management system wherein the material, or the products are produced and acquired just a few hours before they are put to use. The Just-in-time system is adopted by the firms, to reduce the unnecessary burden of inventory management, in case the demand is less than the inventory raised. The objective of Just-in-time is to … [Read more...] about Just-in-Time System
Three-Bin System
Definition: The Three-Bin System is like a two-bin system, wherein the third bin of inventory is reserved with the supplier. In other words, a manufacturing firm keeps a stock of inventory in two bins, and at the same time, the supplier of the inventory will keep one bin reserved at his location. The Three-bin is built on the concept of Kanban system, a system used by the … [Read more...] about Three-Bin System