Elaborate on the working and benefits (or otherwise) of inventory pooling in the overall system of multiechelon inventory with focus on highest /least benefits by combining the two. Concept Introduction: A system of inventory having more than one level of warehouses to the retail store is called a multiechelon inventory system e.g. a number of regional warehouses supply to local warehouses which supply to retail stores is a three eichelon system. One of the methods of reducing/eliminating risks due to uncertainty of consumer/retail demand is to combine (pool) the demands of a number of retail stores. This method is called inventory pooling (aka risk pooling). Inventory pooling and multiechelon inventory systems can work in tandem but may maximize or minimize benefits as per specific situations.

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“Implementing a Performance Management Communication Plan at Accounting, Inc.” Evaluate Accounting Inc.’s communication plan. Specifically, does it answer all of the questions that a good communication plan should answer? Which questions are left unanswered? How would you provide answers to the unanswered questions? “Implementing an Appeals Process at Accounting, Inc.” If you were to design an appeals process to handle these complaints well, what would be the appeal process? Describe the recommended process and why.

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Chapter 6.9, Problem 22P

Summary Introduction

Interpretation:Elaborate on the working and benefits (or otherwise) of inventory pooling in the overall system of multiechelon inventory with focus on highest /least benefits by combining the two.

Concept Introduction:A system of inventory having more than one level of warehouses to the retail store is called a multiechelon inventory system e.g. a number of regional warehouses supply to local warehouses which supply to retail stores is a three eichelon system.

One of the methods of reducing/eliminating risks due to uncertainty of consumer/retail demand is to combine (pool) the demands of a number of retail stores. This method is called inventory pooling (aka risk pooling).

Inventory pooling and multiechelon inventory systems can work in tandem but may maximize or minimize benefits as per specific situations.

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