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The following represent the four primary reasons why inventories are held:
- to take advantage of price discounts
- to take advantage of economic lot sizes
- to provide a certain level of customer service
- because production requires some in-process inventory
For this discussion activity, select one primary reason above and evaluate its value to inventory management. Include within your rationale at least one real-world example.
When responding to your fellow classmates’ posts, discuss how their real-world examples apply to other industries. Identify an industry, outline its inventory management issues, and describe its effectiveness of holding the inventory or not.
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