Briefly Explain What Is Meant by Protective Put

question 19

Essay

Briefly explain what is meant by protective put.

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Definitions:

Lot Size

The quantity of units produced or ordered in a single production run or order placement.

Cycle Inventory

Cycle inventory refers to the portion of inventory that is consumed and replenished in regular cycles in a supply chain, correlating with order frequency.

Annual Inventory

encompasses the total quantity or value of inventory that a company holds over a year, reflecting both the turnover rate and the efficiency of inventory management.

Distribution Inventory

Stocks of goods and materials held at various points in a supply chain, intended for downstream distribution.