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Balance Inventory Cost and Availability

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Your question is Balance Inventory Cost and Availability. Take a moment with it on the right.

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Problem

Scenario

You are responsible for inventory planning for a manufacturing operation where missed material can stop production, but excess inventory ties up cash and increases obsolescence risk. You need a clear approach for deciding where to hold more stock, where to run leaner, and how to make those trade-offs visible to operations and finance.

Question

How do you balance the trade-offs between minimizing inventory holding costs and ensuring high production availability?