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What involves analyzing business operations for internal decision making and does not have to follow any rules issued by standard-setting bodies such as GAAP?
Safety Inventory
Additional stock that a company holds to prevent stockouts and ensure product availability, acting as a buffer against demand fluctuations.
Holding Cost
The expenses associated with keeping inventory in storage, including warehousing costs, insurance, depreciation, and potential obsolescence.
Standard Deviation
Standard deviation measures the amount of variation or dispersion of a set of values, indicating how much they deviate from the average.
Safety Inventories
Stocks of products or materials kept on hand to protect against uncertainties in supply or demand.
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