Explain the Three Classifications of Retailers

question 37

Essay

Explain the three classifications of retailers.

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Definitions:

Safety Stock

Additional inventory held to mitigate the risk of stockouts due to demand variability or supply chain disruptions.

Reorder Point

The inventory level (point) at which action is taken to replenish the stocked item.

Rate of Demand

The speed at which goods or services are requested or required by consumers or processes.

Quantity Discount Model

A pricing strategy that offers a lower price per unit of goods or services when a larger quantity is purchased.