Inventory management is a core operations management activity.Effective inventory management is often the mark of a well-run organization. Inventory levels must be planned carefully in order to balance the cost of holding inventory and the cost of providing reasonable levels of customer service.

To be competitive, many fast-food chains (McDonalds, Burger King, Wendy, Taco Bell, Subway, Fire House and others) began to expand their menus to include a wider range of foods. Although contributing to competitiveness, this has added to the complexity of operations, including inventory management.Specifically, in what ways does the expansion of menu offerings create problems for inventory management?