1. It is not true that any inventory is a sign of waste because companies need to have some inventory so
goods are available to customers when they want/need them. Do you want to arrive at a hospital,
needing blood, only to hear that the hospital has implemented a “zero inventory” policy? That said,
2. An inventory driver is something that causes companies to hold more inventory than they usually
would. Controllable inventory drivers, as the name suggests, are those that can be managed or
3. Independent demand inventory are items whose demand is determined by outside parties (typically
the final customer). Examples include items A, C, and D in the list. Dependent demand inventory is
4. A good reason to push inventory downstream is to have inventory positioned where customers need
it. A con of having the inventory downstream is that it is often very difficult to “reverse” the supply
5. According to the EOQ, lowering ordering cost would result in lower order quantities and hence lower
6. Lowering the ordering costs would result in a lower EOQ. Stabilizing the demand level means lower