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Setup Cost
The expenses incurred to prepare equipment or processes for manufacturing or service provision.
Carrying Cost
Expenses associated with holding or storing inventory over a period, including warehousing, insurance, depreciation, and opportunity costs.
Safety Stock
An additional quantity of an item held in the inventory to reduce the risk that the item will be out of stock.
Lead Time
The amount of time that elapses between the initiation and completion of a process.
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Q74: Modified Multiple Choice Which of the following