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Home » Supply Chain and Operations Management Glossary (R)

Supply Chain and Operations Management Glossary (R)

R2 (R squared): A measure, between 0 and 1, of how well a forecast or regression line fits a set of data. An R2 of 1 means a perfect fit. Numerically, it is 1 – (sum of squared errors about the forecast line)/(sum of squared errors about the mean). Rain-check: A form of backlog in which the seller, in the event of a stock-out, gives a ticket to a customer wishing to purchase the product, guaranteeing that the seller will order more of the product and sell it to the customer at the original price. Ramsey prices: A form of cost allocation that…

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