Inventory represents a significant investment of capital for most companies. Inventory ties up money
that could be used more productively elsewhere. Thus, effective inventory management offers the potential
for significant cost savings. Furthermore, quality, product engineering, prices, overtime, excess capacity,
ability to respond to customers (due-date performance), lead times, and overall profitability are all
affected by inventory levels. For example, Bal Seal Engineering used the theory of constraints to reduce
inventory by 50 percent and double profits