Talk About: -Penal Colony

question 19

Essay

Talk About:
-Penal colony

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Definitions:

Shortage Costs

Costs incurred when demand exceeds supply, including opportunity costs of unsatisfied demand and potential loss of future business.

Safety Stock

Extra inventory kept on hand by a company to prevent stockouts caused by delays in the supply chain or sudden increases in demand.

EOQ

Economic Order Quantity is the ideal order quantity a company should purchase to minimize its inventory costs, including holding, shortage, and order costs.

Most Liquid

A term used to describe assets that can be most easily and quickly converted into cash with minimal loss in value.