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Explain how "perverse incentives" such as COMPSTAT can lead to organizational corruption.
Carrying Cost
The total cost of holding inventory, including storage, insurance, taxes, and opportunity costs, among others.
Order Quantity
The amount of stock or goods a company purchases or plans to purchase in a single order.
Operating Cycle
The amount of time it takes for a business to buy inventory, sell that inventory, and collect cash from the sale.
Cash Cycles
The duration it takes for a business to convert its investments in inventory and other resources back into cash flows from sales.
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