1. Why is inventory management important to the efficiency of the purchasing function? the purchasing function is directly influenced by inventory management decisions. Before inventory productivity can be improved, one must take a careful and critical look at the specific business entity. In the area of inventory management, the purchasing professional should make explicit decisions regarding the following: What to stock. The purchasing professional, at the very minimum, must meet the requirements and needs of the manufacturer or distribution operation. How much to invest. The purchasing professional must first review the level of capital support for inventory. This decision is usually made at the vice president level. How much service to offer. What level of protection against stock-outs is acceptable for the competitive environment? It