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The Microenvironment Consists of Larger Societal Forces That Affect a Company

question 14

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The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces.


Definitions:

Average Inventory

The mean stock level held by a company over a certain period, calculated to understand inventory trends and management effectiveness.

Optimal Order Quantity

Optimal Order Quantity is the ideal amount of inventory a business should purchase to minimize costs while meeting demand without overstocking or understocking.

Economic Order Quantity

A formula used to determine the optimal order quantity that minimizes the total inventory holding costs and ordering costs.

Flow Time

The total time it takes for a product to move through a production process, from start to finish, including both processing and waiting times.

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