answer the two discussion questions

Article 1: OM in the News: The Post-Pandemic Inventory Dilemma NOVEMBER 10, 2021 tags: COVID-19 inventory, JIT just-in-case, supply chains by Barry Render inte inBev Alev Budweiser brewer AB InBev shared the cost of undrunk beer with its distributors during lockdowns. From undrunk beer to unfinished forestry equipment, businesses deliberate just-in-time or just-in-case inventories, reports The Wall Street Journal (Nov. 8, 2021). Companies are wrestling with how big their inventories should be, since the pandemic highlighted the dangers of having both too much and too little stored away. When the pandemic first struck, and demand for many goods dived, some companies were left holding large, costly inventories. But closed borders, strained supply chains and rebounding demand meant bigger stock buffers can prove positive. Now, the question of whether to maintain costly extra stockpiles or risk getting caught out again by disruption has emerged among the host of dilemmas businesses face, from whether to reshore production to how to best transport goods. Businesses from Nissan to PepsiCo say the decadeslong trend of hyper-efficient supply chains, called JIT manufacturing, could be ending. But many companies say they will likely return inventories to pre-Covid levels when trading conditions normalize. As we point out in Chapter 12, holding large inventories ties up capital, requires extra space and people to manage it and needs to be insured. It is also a problem for companies selling products with a sell-by date. "Cost is still the driver for companies," said a PwC exec. Inventories can be problematic going into a demand shock like a pandemic. Companies like car makers and luxury-goods brands were left sitting on stockpiles they couldn't use when demand collapsed last year. Drinks companies including Guinness maker Diageo and Anheuser-Busch InBev shared the cost of undrunk beer with their distributors to spare bars and restaurants from picking up the tab during lockdowns. Other companies say they will likely go back to normalized inventory levels, but will change how they manage them. For instance, some multinationals plan to decentralize stocks to place them closer to customers, giving them localized stockpiles to dipinto during supply-chain strain. Swiss drug giant Novartis is working to ensure each country it sells to has a second supply point for key products. "One thing we learned last year was to have strategic inventory in more places...decreasing the dependency on single locations," said Novartis' OM head. Classroom discussion questions: 1. What are the strengths and weaknesses of JIT? (Hint: see Chapter 3 of your textbook) 2. Why will many companies return to pre-Covid inventory policies