Compare and contrast these inventory methodologies

Assignment Help Operation Management

Reference no: EM132300715

Traditionally, companies have built up their inventory levels to:

Accommodate for uncertainties in demand

Take advantage of economies of scale

Accommodate for unreliable suppliers

Accommodate for quality issues

Accommodate for production and scheduling errors.

Yet, JIT and Lean Manufacturing philosophies state that inventory is considered waste and should be eliminated as much as possible.

1. Compare and contrast these inventory methodologies and choose the methodology you feel is the most beneficial and why?

2. Now play devil’s advocate and make a case for using the other inventory methodology.

Reference no: EM132300715

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