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Managers control the 'time period for reconciling inventory', which represents how aggressively the firm tries to correct inventory discrepancies A long 'time period for reconciling
Managers control the 'time period for reconciling inventory', which represents how aggressively the firm tries to correct inventory discrepancies A long 'time period for reconciling inventory' implies management is willing to allow a large inventory gap, while a short 'time period for reconciling inventory' implies swift corrections to eliminate a gap and bring inventory in balance with desired inventory rapidly a. To stabilize the system, should 'time period for reconciling inventory' be longer or shorter? Why? What do you mean stability? b. Pick a new value for 'time period for reconciling inventory' that you feel will increase the stability of the system, and run the model. Do the results match your expectations? c. Explain your results. Should management be more or less aggressive in managing inventories?
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Inventory Reconciliation and System Stability a Time Period and Stability To stabilize the system th...Get Instant Access to Expert-Tailored Solutions
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