Examlex
Explain and provide one example of how policies can be useful in cases where there are high levels of discretion?
Safety Inventory
A quantity of stock maintained in reserve to protect against uncertainties in demand or supply, ensuring that operations continue smoothly.
Lot Size
The quantity of goods considered to be a standard amount for buying or manufacturing, often determined by considering production efficiency and inventory holding costs.
Fill Rate
The percentage of customer demand that is met without backorders or delays, indicating the efficiency of inventory management.
Forecast Uncertainty
The degree of unpredictability in predicting future events, often related to demand, supply, or other market factors.
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