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a method for dividing on-hand inventory into three classifications based on annual dollar volume
extra stock to allow for uneven demand; a buffer.
a statistical model applicable when product demand or any other variable is not known but can be specified by means of a probability distribution
a system that keeps track of each withdrawal or addition to inventory continuously, so records are always current
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a system for ordering items tha have little or no value at the end of the sales period
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an economic order quantity technique applied to production orders
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the inventory level (point) at which action is taken to replenish the stocked item
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in purchasing systems, the time between placing an order and receiving it; in production systems, the wait, move, queue, setup, and run times for each component produced
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Total Annual Cost formula
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Single-period Inventory Model formula
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