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Why wholesale stores such as Costco need a lower safety stock than smaller stores such as Stop and Shop?

You consider reserving a campsite for the weekend. Should you make the reservation as soon as possible to have more choices, or as late as possible to ensure a nice weather?
Given dynamic changes in demand for different majors and skills, how can you maximize the chance of choosing the right major?
You are considering some alternatives for investing your savings. The rate of return of different alternatives depend on the economy situation during the next few years. How can you incorporate the uncertainty regarding the economy situation into your decision making?

Business challenges
Why wholesale stores such as Costco need a lower safety stock than smaller stores such as Stop and Shop?
How can an online jeweler company such as Blue Nile set a lower price than its brick and mortal competitors?
Why banks set a higher rate for a 30-year fixed rate mortgage than a 30-year adjustable rate mortgage?

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