Question: 1. How should a manager decide the appropriate service level for finished goods items? Should some items have a 100 percent service level?
2. What is the appropriate role of inventory turnover as a measure for evaluating the management of inventory? Under what circumstances is high turnover detrimental to a firm?
3. Suppose you are managing a chain of retail department stores. As a top manager, how would you measure the overall inventory management performance of each store? How would you use this information in your relationship with the individual store managers?