Examlex
Which of the following is not an assumption of both the arbitrage pricing theory (APT) and the CAPM?
Safety Stock
Extra inventory kept on hand to protect against stockouts caused by variations in supply and demand.
Service Level
A measure of the quality of service provided to customers, often quantified as the percentage of customer demands met on time.
Lead Time
The total time it takes to complete a process from start to finish, often measured from the initiation to the delivery of a product or service.
Optimal Order Size
The ideal quantity of inventory to order that minimizes the total costs associated with ordering, carrying, and stockouts.
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