Discussion Post: Managing Inventory Levels
The following represent the four primary reasons why inventories are held:
• to take advantage of price discounts
• to take advantage of economic lot sizes
• to provide a certain level of customer service
• because production requires some in-process inventory
For this discussion activity, select one primary reason above and evaluate its value to inventory management. Include within your rationale at least one real-world example.
When responding to your fellow classmates' posts, discuss how their real-world examples apply to other industries. Identify an industry, outline its inventory management issues, and describe its effectiveness of holding the inventory or not.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.