Inventory FAQs:

Q: Is inventory to be maintained for consumption during 'variations in lead time'?

A: Yes, Lead time itself can be addressed by ordering that many days in advance.

Q: Is inventory not seen or valued by the consumer?

A: Yes, so it is simply cash sunk into the ground.

Q: Is inventory reduced?

A: Yes.

Q: Is inventory inventory whose potential to be sold at a normal cost has passed or will soon pass?

A: Yes.

Q: Is inventory sub-optimal because the money spent to obtain it could have been utilized better elsewhere, i.e?

A: Yes, to the product that just ran out.

Q: Is inventory very useful because of their simplicity?

A: Yes, and they are also fraught with the danger of their own assumptions.

Q: Is inventory displayed on a regular basis?

A: Yes.

Q: Are inventories maintained as buffers to meet uncertainties in demand?

A: Yes, and supply and movements of goods.