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- 1. enefits of Effective Reorder Management: By implementing these strategies, you can achieve: Reduced Stockouts: Maintain sufficient inventory to meet customer demand and avoid lost sales or customer dissatisfaction. Lower Holding Costs: Minimize the amount of inventory you hold, reducing storage, insurance, and other associated costs. Improved Cash Flow: Free up capital tied up in excess inventory for other business needs. Enhanced Efficiency: Streamline your inventory management processes and optimize ordering cycles.