Managers require information on the INVENTORY STATUS in the
various locations, relationships with transportation providers, and
estimates of demand by location and item (forecasting).
• Satisfying customers requires to BALANCE the level of inventory
against the level of service to the customers A trade against the level of service to the customers. A trade-off between
the inventory costs and the level of service must be made.
• IMPROVEMENTS can be made by having better knowledge of
demand, + rapid transportation alternatives, speedier production,
more flexibility