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What does it mean to say that financing is a zero-NPV transaction?
Periodic Review
A systematic evaluation of a process or system at regular intervals to ensure it meets certain standards or goals.
Safety Inventory
Additional inventory kept to protect against variability in demand or supply, ensuring that stockouts are minimized.
Cycle Service Level
A measure of a company's ability to deliver products to customers within the committed time frame, often used as an indication of inventory management effectiveness.
Fill Rate
The percentage of customer demand that is met without backorders or stockouts, reflecting a company's ability to satisfy orders with available inventory.
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