1. Discuss several reasons why managers often neglect the true costs of holding physical inventory. What has happened to change our perspective about holding physical inventory?
2. Of the following functions of physical inventory, select the one that purchasing is most likely to be directly involved in: (a) support of production requirements, (b) support of operational requirements, or (c) support of customer service requirements. Explain your choice.
3. What problems does overforecasting demand create within a supply chain? What problems does underforecasting demand create? What can a company do to resolve the problem of forecasting inaccuracy?