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Carrying high levels of inventory can be costly and risky. While products sit on shelves, opportunities and financing might be missed. Pilferage is a potential risk. Over time, the product could become obsolete.Today, organizations are developing techniques to reduce the levels of inventory they must maintain, and their associated costs. For example, one evolving trend is to maintain showroom inventory. Approaches such as in-transit replenishment stock and point-of-sale reordering also reduce stagnant inventory costs.How have new approaches influenced inventory information delivery in your organization?Investigate and identify any significant declines in inventory costs and levels for your organization over the span of the past 20 years.How have costs of carrying high levels of inventory (such as financing, opportunity, obsolescence, and pilferage) in your organization changed?Suggest at least one reason for any apparent decreases in costs or levels of inventory.What benefits can you attribute to these declines?Discuss some of the best practices that leading companies, using unique approaches to logistics and inventory management, have embraced.
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