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Recall the experiment by Jurgen Rehm,Michael Steinleitner,and Waldemar Lilli (1987) in which teams of German school children played handball.Results of this experiment in which children wore their own clothing or team uniforms revealed that
Safety Reserves
Financial or physical assets kept on hand as a precautionary measure to cover unexpected expenses or emergencies.
Shortage Cost
The cost incurred from the inability to satisfy demand for a product or service due to insufficient resources or supply.
Carrying Costs
The total cost of holding inventory, including storage, insurance, depreciation, and opportunity costs.
Storage Costs
Expenses incurred for storing goods, which may include warehousing, refrigeration, insurance, and security expenses.
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