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Fixed Cost
Costs that do not fluctuate in relation to the level of production or sales, such as rent or salaries.
Economic Order Quantity
The optimal quantity of inventory to order that minimizes total inventory costs, including holding, ordering, and shortage costs.
Carrying Cost
The total expense of holding a particular asset over time, including storage, insurance, and taxes, but excluding buying cost.
Order Cost
Expenses incurred in placing and receiving orders from suppliers, including costs related to processing, shipping, and handling.
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