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Fixed Order Cost
Represents the constant expenses associated with placing an order for goods or materials, regardless of the order size.
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.
Cycle Inventory
The portion of inventory available to meet normal demand during a given period without restocking.
Increase Cost
The rise in expenses associated with the production, acquisition, or maintenance of goods and services.
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