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What are the two most important considerations in determining an appropriate sample size?
Acquisition Lead Time
The total time taken from recognising a need for a product or service to when it is fully operational or delivered.
Inventory Handling Cost
The expenses associated with managing and maintaining inventory, including storage, labor, material handling, and related overhead.
Standard Deviation
A statistical measure indicating the amount of variation or dispersion from the average in a set of data.
Reorder Point System
An inventory control method that determines the lowest level of inventory before a reorder must be placed to avoid stockouts.
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