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  1. Briefly define holding costs and inventory costs, and explain the relationship between the two when defining an inventory policy.
  2. Find at least one business example of a fixed-order quantity system versus a fixed period quantity system. What are their differences? Which do you think is better and why?
  3. Briefly describe the concept of the ABC inventory classification model.
  4. Identify an example of VMI. Explain the benefits to both the vendor and retailer. Identify some of the risks for both parties.


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