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What are the five functions of the Bank of Canada? Which one is most important?
Carrying Costs
The total costs associated with holding inventory, including warehousing, insurance, and loss from obsolescence.
Shortage Costs
Expenses incurred when demand exceeds supply, often leading to lost sales or higher production costs.
Weighted Average Delay
The average delay time for all items being processed, taking into account the proportion that each item contributes to the total amount.
Collection Delay
The time lag between when a payment is made by a customer and when the funds become available to the recipient company.
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