What is the correct level of inventory

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Reference no: EM131152480

Even though in theory, Lean is the directive that supports zero inventory, realistically, all companies must maintain a certain level, even if it only safety stock (alpha risk).

Many think that Lean inventory may imply zero inventory, but in fact, represents methods to reduce, not eliminate inventory.

The quandary is, however, what is the correct level of inventory?

Reference no: EM131152480

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