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The performing stage is characterized by a climate of open communications.
Expected Overstock
The anticipated surplus inventory that exceeds the demand, often leading to markdowns, clearance sales, or write-offs.
Expected Understock
The anticipated shortage of inventory, where demand exceeds the available supply within a certain period.
Customer Service Level
A measure of the ability of a company to meet customer needs and expectations in terms of product availability, delivery times, and communication.
Holding Cost
Expenses related to storing inventory, including warehousing, insurance, and depreciation.
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