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Expected Profit
The anticipated monetary gain from business activities, calculated by multiplying the probability of various outcomes by their respective profits and summing the results.
Expected Understock
Anticipated situations where inventory levels are not sufficient to meet customer demand.
Trade-Offs
Situations requiring a choice between options that have different advantages and disadvantages, involving compromises.
Optimal Order
The most efficient or cost-effective quantity of goods to order, taking into account factors such as demand, holding costs, and ordering costs.
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