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Few merchants today would claim to have reached the level of inventory management, as developing such a strategy can be complex. But there are compelling economic reasons to try. In most multichannel companies, inventory is the largest dollar asset on the balance sheet, which means that how well you plan, forecast, and manage inventory will to a large degree determine your profitability. Inaccurate forecasting ultimately produces backorders, and backorders can result in dissatisfied current customers; they can also turn away potential new customers.
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