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Safety Inventory
Extra inventory kept on hand to guard against variability in demand or supply and prevent stockouts.
Expected Shortage
The anticipated deficit in supply of a product or resource, often calculated based on current inventory levels and projected demand.
Safety Stock
Additional inventory held to protect against stockouts caused by variations in supply and demand, ensuring that a sufficient quantity of goods is available for production or sale.
Average Flow Time
The average time that it takes for a product to go through the entire supply chain, from procurement of raw materials to the delivery of the final product.
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