Such are active management
can be successful from the service performance point of view if
the company’s inventory management is performing well ,but
nevertheless it can be come very expensive for the whole chain.
The reason for this is that the optimization of a single stocking
echelon or a member of the distribution chain in a large
distribution network produces sub-optimal results for the whole
supply chain.It can actually decrease the whole chain’s performance, for example if some storage locations change their
replenishment behavior int heir benefit so that demand types
change from stable to unstable in the distribution center.These
are the examples of why then arrow scope of reactive management is not sufficient if there is a need to increase distribution chain performance without generating excessive inventory levels and costs.