M7D1: Managing Inventory Levels

The following represent the four primary reasons why inventories are held:

  1. to take advantage of price discounts
  2. to take advantage of economic lot sizes
  3. to provide a certain level of customer service
  4. 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.
Only needs to be 2-3 Paragraphs