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An informant brings a tip to a police department about suspicious activity at the docks. After detectives meet and process this information, they decide that the best course of action is to send undercover officers to the scene. If the police department was a neural network, the detectives are functioning as:
Safety Stock Inventory
A quantity of inventory kept on hand as a buffer against fluctuations in demand or supply.
Inventory Model
An analytical approach or mathematical formula used to manage and control stock levels, optimizing inventory costs and meeting demand.
Ordering Cost
The cost of the ordering process.
Carrying Cost
Carrying cost refers to the total cost of holding inventory, including storage, insurance, spoilage, and opportunity costs.
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