What are the variances for meat products in inventory management?

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In inventory management, particularly for meat products, variances represent the acceptable thresholds for fluctuations in stock levels, which are crucial for maintaining freshness, quality, and optimal inventory turnover. The correct answer, which identifies a range of -1 to -1.5, suggests a controlled approach to inventory discrepancies that allows for minimal deviations below zero. This range indicates that while some negative variance can occur, it should be kept within a narrow band, ensuring that inventory levels do not fall too low, which could lead to shortages or impacts on service quality.

This stance is significant for perishable goods like meat, where maintaining an appropriate inventory is vital for food safety and customer satisfaction. Therefore, the specific variance of -1 to -1.5 allows for minor adjustments in stock without signaling major inventory management issues, demonstrating a proactive stance on monitoring and managing inventory effectively.

Other ranges might indicate either excessive potential for negative variance or be too loose in managing surplus stock, leading to potential waste or financial inefficiencies. Thus, the selected range reflects a strategic balancing of inventory control for meat products.

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