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Decreased operational availability (Ao) can result from equipment failures, inadequate maintenance, or inefficient processes, leading to increased downtime. This decreased availability often forces organizations to maintain higher inventory levels to mitigate disruptions, which can bloat costs and storage requirements. Additionally, delays in production and supply chain disruptions can exacerbate these issues, further straining financial resources and operational efficiency.

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2mo ago

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Decreased operational availability increased costs and bloated inventories may result from?

Decreased operational availability, increased costs, and bloated inventories may result from supply chain disruptions, inefficient processes, or poor demand forecasting. When operations are not running smoothly, it can lead to delays and heightened expenses, which in turn can cause companies to overstock inventory as a buffer against uncertainty. Additionally, lack of visibility and communication across the supply chain can exacerbate these issues, leading to increased waste and inefficiencies. Ultimately, these factors can hinder overall business performance and profitability.


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