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Costs Of Placing An Order
Expenses associated with ordering inventory, including administrative costs, shipping, handling, and procurement costs, critical in managing inventory levels.
Shortage Cost
Costs incurred from not having enough inventory or resources to meet demand, including lost sales and dissatisfied customers.
Cumulative Cash Surplus
The total amount of cash that exceeds the initial investment or expenses over a period.
Minimum Cash Balance
The lowest amount of cash that a company aims to hold in its accounts to ensure financial stability and operational efficiency.
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