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Therefore, firms – from manufacturing to wholesale to retail – are intensifying their search for more efficient and effective inventory management approaches to minimize not only their direct investments in purchased goods inventory but also the indirect costs incurred in managing such inventory.
This term paper focuses on comparison of different inventory management approaches; decision of determining how much inventory to order and when to order and the effects of inventory management.
II. LITERATURE REVIEW
In the paper “What is the ‘right’ inventory management approach for a purchased item?”, it identified and explained the critical factors that drive the decision of how a firm should decide which of four choices – i...
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