Many food and beverage companies struggle in their attempt to optimize finished goods inventory due to inherently complex supply chains characterized by long lead times. Complicating matters are issues brought about by manufacturing constraints, multiple and significant sources of variability, product seasonality and shelf-life constraints, and competing organizational goals and performance expectations. Overlay difficulties encountered in identifying and quantifying the impact of these issues, as well as struggles in aligning the various functions to improve coordination, and the net result can be poor inventory performance and sub-par service levels.
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