Question

A company is experiencing a poor inventory management situation and receives alternative research proposals. Proposal 1 is to use an audit of last year’s transactions as a basis for recommendations. Proposal 2 is to study and recommend changes to the procedures and system used by the materials department. Discuss issues of evaluation in terms of:
(a) Ex post facto versus prior evaluation.
(b) Evaluation using option analysis and decision theory.



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  • CreatedSeptember 17, 2014
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