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Concept of Stock Replenishment 

This concept assumes that stock is always available whether there is demand or not. Consider the demand for constituent items, such as component parts or raw materials. By having stock of everything available all the time, we are in conflict with basic management objectives of low inventory (low cost) and high return on investment.

The term 'replenishment' means restoration to an original state of fullness.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9528659

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