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by bluesign
1001 days ago
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Imagine you buy for X, and sell to some supermarket for Y, and they pay you in T time. Optimum Y is not related to X, but the price when you replace the stock. ( let's say X2 ) When supply has problems, or economy is unpredictable, it is harder to predict X2, so usually your estimation is a bit off. So you have to have bigger margin to cover for this estimation error. ( assume the worst ) |
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