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The "Lean" Ideal Regarding Inventory Is to Have Just Enough

question 6

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The "lean" ideal regarding inventory is to have just enough inventory to keep operations running smoothly and meet customer needs.


Definitions:

Exponential Distribution

A probability distribution used to model the time between events in a Poisson process, describing events that occur continuously and independently.

Waiting Time

The duration of time a person or item spends waiting before a service begins or an event happens.

Degrees of Freedom

The quantity of distinct values or measures that can be attributed to a statistical distribution.

Area

A measure of the extent of a surface or a region, usually expressed in square units.

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