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It was not until 1987, that Kmart began to put money into its information infrastructure. However, management rejected any use of technology that could benefit them. For example, while Kmart had the capability to collect data for forecasting, it did not. Rather management still developed the forecasts themselves. Additionally, a proposal to integrate computer systems in distribution was rejected because management thought it too costly. The technology lag in the distribution centers was so bad that reorders were often based on hand tracking.
Kmart's supply chain management contributed to their problems...
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