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If an agreement is made between two parties of unequal bargaining power:
Float Management
The practice of managing the time between when a check is deposited and when it clears, to optimize the use of funds.
Target Cash Balance
The optimal amount of cash a company seeks to maintain to handle operational and transactional needs efficiently.
Carrying Costs
Expenses associated with holding inventory, including storage costs, insurance, and loss due to obsolescence.
Shortage Costs
Expenses incurred from inventory deficits, including lost sales and additional costs for expedited shipping.
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