QUESTION 2 [20]

Inventory is key to profitability. Inventory velocity turns assets into profits. The faster inventory turns, the greater the profitability. Inventory is the key issue to supply chain management success. Customers demand that their orders be shipped complete, accurate and on-time. That means having the right inventory at the right place at the right time.

2.1 Provide your own understanding of inventory in supply chain. (8)

2.2 Discuss in detail, the basic categories of inventories which are typically held by organisations. (12)