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Relationship between customer service and inventory levels

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What is the relationship between customer service and specific levels of inventory? How does that relationship impact cost? How can that cost be minimized while still maintaining desired customer service levels? How do integrated logistics systems provide customer value?

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Solution Summary

The relationship between customer service and specific levels of inventory are discussed. How to minimize cost while still maintaining desired customer service levels is determined.

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There could be a positive relationship or negative relationship between customer service and specific levels of inventory. In order for customer service to be at a high level, the employees must have the supplies and products that they need at the right times in the right quantities. If they do not have products that are ordered or the right products to do their job, there will not be as high of a level ...

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