Inventories Are Everywhere
This morning I began the day by pouring a glass of orange juice from a half gallon container, filling a bowl with cereal, which was stored in a large box in a kitchen cabinet, taking a banana from a bunch sitting on our kitchen countertop along with many other items, slicing the banana onto the cereal, pouring milk into the bowl from a gallon container, and then sitting at a table to enjoy my breakfast. There are six chairs at my breakfast table, but, of course, I occupy only one. When taking the cereal from the cabinet, I had to choose from six different cereals we have stocked. I could have selected either low or high pulp content orange juice, since we stock both types; I could have chosen either 1% or skim milk to place on my cereal. The kitchen remains full of food items and food preparation materials that will be used at some later time. The remainder of my house contains many other types of items sitting idly, waiting to be used at a future time. My Jaguar convertible will not be used today. It is raining, so I will take the Dodge minivan to the office.
KeywordsSupply Chain Lead Time Forecast Error Item Type Demand Rate
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