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There are two types of finished goods inventory levels. The inventory levels of MTS products exist awaiting orders from customers. Some of these MTS products are slow moving and can be shifted to the MTO category. However this needs to be done in consultation with the customers of these products so that they are not inconvenienced. To simply reduce the level of the MTS products can adversely affect customer service levels, because of stock outs. In order to effectively reduce the inventory levels a greater co-ordination is required with the customers. The regional distributors need to have better forecasting techniques...
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