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Background: Jerry's Hardware's policy and procedure for inventory management calls for
Section 5.6.13 investment in inventory be kept at a level that ensures there is sufficient inventory to cover expected sales, and
Section 5.6.14 investment of funds in inventory as low a level as possible.
Your manager is concerned that the current policy and procedure is not allowing Jerry's Hardware to achieve the most efficient and effective level of investment in inventory. Your manager feels that the current policy and procedure, in particular section 5.6.13, is a barrier to achieving the best level of investment in inventory and asked you to prepare the ad hoc report in Task 3. Your manager has read the report and is now ready to discuss it with you and then move to the implementation of some improvements in inventory management.
Required discussion in role play:
Refer to the report you prepared in task 3 and discuss the current inventory policy and procedure and some changes that could be made to improve the investment levels in inventory. The meeting should cover these points:
Limitations of the current policyImprovements that could be madeAgreement on a course of action
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