What is the role inventory in supply chain?

Question

Accepted Answer

Inventory plays a crucial role in supply chain management by ensuring the availability of products, optimizing costs, and minimizing disruptions.

Inventory helps in meeting customer demand by ensuring product availability.
It acts as a buffer between supply and demand, reducing the risk of stockouts.
Inventory management helps in optimizing costs by balancing holding costs and ordering costs.
It enables efficient production planning and scheduling.
Inventory can be used strategically to mitigate supply chain disruptions, such as delays or disruptions in transportation.
Examples of inventory include raw materials, work-in-progress, and finished goods.

Accepted Answer

The role of inventory is basically keeping SKUs and fulfill the orders to the customers. It also plays a big role in reducing inventory costs depending on the segmentation of the products.

What is the role inventory in supply chain?

Top Tata Steel Supply Chain interview questions & answers

Popular interview questions of Supply Chain