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Inventory Carrying Costs
Inventory carrying costs include all expenses related to holding and storing unsold goods, such as warehousing, insurance, and spoilage.
Ordering Costs
Expenses associated with placing orders for more inventory, including costs related to order processing, communication, and transportation.
Memory Chips
Electronic components used to store data temporarily or permanently in computers and other devices.
Safety Stock
Safety stock is an additional quantity of an item held in inventory to reduce the risk of stockouts and production halts, serving as a buffer against demand fluctuations or supply delays.
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