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10. Computer-based Inventory Control System. Wayne Ramsey had pressed for three years unsuccessfully for a state-ofthe-art computer-based inventory-control system that would link eld sales reps,

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10. Computer-based Inventory Control System. Wayne Ramsey had pressed for three years unsuccessfully for a state-ofthe-art computer-based inventory-control system that would link eld sales reps, distributors, drivers, warehouses, and possibly retailers. The benefits of such a system would be shortening delays in ordering and order processing, better control of inventory, reduction of spoilage, and faster recognition of changes in demand at the customer level. Ramsey was reluctant to quantify these benets, because they could range between modest and quite large amounts. This year he presented a cashow forecast as part of a business case for the project. An initial outlay of $1 .2 million for the system, followed by $300,000 next year for ancillary equipment. The inows reflected depreciation tax shields, tax credits, cost reductions in warehousing, and reduced inventory. He forecasted these benets to last for only three years. Even so, the project's IRR was estimated to be 16.2 percent. This project would be classed in the efficiency category

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