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Your client is an FMCG company with $2 billion in revenues that manufactures frozen dough. They have been experiencing a high spoilage rate for the last four years, despite implementing a FIFO inventory system that reduced spoilage from 10 percent to 7.5 percent last year. The industry average spoilage rate is 2.5 percent. The client wants you to identify the causes behind the high spoilage rate and recommend ways to reduce it.

Identify the key causes behind the client’s high spoilage rate of frozen dough and recommend operational improvements to reduce it.