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Purchase Price
The amount of money paid to buy a good or service.
Safety Stock
Additional inventory held to protect against uncertainties in demand or supply, ensuring sufficient stock is available to meet customer needs.
Service Level
A measure of the quality of service provided, often defined as the percentage of customer demands that are met on time.
Reorder Period
The time interval between placing orders for inventory replenishment to ensure consistent supply without incurring stockouts or excessive holding costs.
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