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What are the disadvantages of holding inventory control systems?
Disadvantages of holding inventory control systems:
a. Higher risk of damage, theft and deterioration
b. Higher risk of stock obsolescence
c. Opportunity cost of money or cash tied up
d. Succeeding price reductions maybe be missed
e. Storage and administration cost of assists for example, warehousing, systems and staff.
Explain the basic idea underlying the contingency view
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A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-h
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