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Question
IMPLEMENTATION PLAN:
Regarding the implementation plan, the BWC will continue to use the management's inventory system, the fixed-order period model, with an 8-week order cycle time and following the order quantity values of 5,561. Before implementing the new system with the suppliers, BWC should count their current inventory to compare the before and after the plan has already into action. The objective of the new system model is to ensure that inventory management and customer demand will refrain from having stock out. To monitor the inventories of BWC, in every ordering period, the stocks should be checked by doing physical counting to see if there are any stock outs for some brands of wines. If there are still stock outs after doing the action, BWC should change the order quantity for that brand of wine. If the implemented plan fails due to some factors, BWC should implement a pre-order system as a contingency plan to avoid further losses.
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