•The profitability of business depends upon the products purchased by the customers, sales volumes, prices, value-added services required and supplementary activities to develop and maintain an ongoing relationship.
•Some customers are highly profitable and have growth potential, while others do not.
•Hence, highly profitable customers constitute the core market for an enterprise and inventory strategies need to be focused on meeting requirements of such core customers.
•Inventory priorities designed to support core customers come out of effective segmented logistics.
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