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Consumers do not like to wait in lines, come back later, or shop somewhere the product is often out of stock. These are the types of problems that lead to a customer walking across the street to the find a particular product somewhere else. In addition, efficient inventory management leads to a more cost-efficient operation (Reid Ch 12, 2002). The goal is to keep inventory on the shelves for the least amount of time as possible. This prevents a high percentage of capital from being tied up in inventory. Through the use of automation and computer based systems, companies are able to control their inventory based on real-time needs instead of historical projections...
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