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Predict the consumption of material

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In operations, supply chain, procurement and material courses, there is a strong emphasis on inventory management and its impact on working capital. There are number of models and formulas used to predict the consumption of material and/or goods. Assuming these are good models and formulas for inventory management, why do so many organizations lose quite a bit money due to obsolete or dated inventories? Please comment on your thoughts.

Reference no: EM132826921

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