A company manufactures and sells a small kitchen appliance. The company’s customers are wholesale distributors who resell the product to retailers. There is no seasonality related to the sale of the product. The company’s manufacturing activities are all conducted domestically and all raw materials are purchased domestically. Analysis of its inventory reveals that the company’s Days Sales in Inventory is at 144 days. The company believes that 60 days of safety stock is adequate. How would you characterize the firm’s inventory management?

a.The company should reconsider its safety stock policy.

b.	Inventory management appears to be adequate. The 144 days is only a small amount higher than the company’s safety margin of 60 days.

c.	Inventory management is not efficient. The company has too much inventory to cover its sales and has its capital tied up needlessly.

d.	Inventory management appears to be adequate. The company cannot carry too much inventory because it should never run out of products and not be able to fill customer orders.