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A reduction in carrying costs would increase the economic order quantity.
Holding Cost
The expenses associated with storing inventory over a period of time, including warehousing, insurance, spoilage, and obsolescence costs.
Net Requirements
The total demand for a product minus the quantity already on hand or on order, indicating the actual quantity needed to meet demand.
Gross Requirements
The total amount of materials or components needed before any adjustments for what's currently available or on order.
Net Requirements
The total amount of a product needed, considering the current inventory and scheduled production.
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