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An EEG is a useful test to help determine
Carrying Costs
Expenses associated with holding inventory, including storage, insurance, taxes, depreciation, and opportunity costs.
Economic Order Quantity
A formula that calculates the optimal order size to minimize the sum of ordering, carrying, and stockout costs.
Stock
Shares of ownership in a corporation or assets that represent an ownership interest.
Shortage Costs
The costs incurred when demand exceeds supply, including lost sales, expedited shipping fees, and decreased customer satisfaction.
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