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Methodology - Essay Example

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Many popular retailers use this method because it is so accurate and allows inventory to be forecasted so that products are always on the shelf and ready for purchasing. In order to satisfy…
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Methodology
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Download file to see previous pages Finally, the total amount of sales for the preceding period is also needed. With all these figures, it can be possible to determine a system that replenishes inventory frequently enough so that customer demand is met. The computations go as follows:
Once the cost of the ending inventory is determined, the potential amount of sales for the next period can be calculated. In order to make sure that the amount of inventory available never goes below 90%, periodic checks can be made to either increase or decrease the amount of inventory on ...Download file to see next pagesRead More
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