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Inventory Cost
The cost associated with holding and storing inventory over a certain period, including warehousing, insurance, and depreciation expenses.
Safety Stock
Extra inventory carried to prevent stockouts in the event of heavy use or delayed delivery.
Working Stock
Working stock refers to the inventory that is readily available for use or sale, excluding any safety stock kept in reserve to cover potential shortages.
Collection Period
The average number of days it takes for a company to collect payments owed by its customers.
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