Week 3 Discussion Board

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It is critical that companies have effective inventory management processes to optimize their supply chain. For example, Dell is a company that carries very low inventory because they have an assemble-to-order strategy rather than a make-to-stock strategy. There are two types of uncertainty discussed, in chapter 7, demand and performance. Supply Chain Managers must be able to manage these uncertainties by understanding their inventory managing processes, reasons why safety stock levels exist and determine appropriate safety stock levels as demand fluctuates. What are the objectives of inventory management? Provide suggestions or examples of how managers should address each type of uncertainty.