Question 4a

As a supply chain manager at an electronics factory, you are preparing a training program for a group of junior factory planners, on the importance of effective inventory management.

(a) Explain any THREE (3) reasons for keeping inventory. Use examples to support. [15 marks]

Summary of the question requirement: explain 3 reasons that company keeps inventory.

Example: to meet customer demand, transportation savings, etc. To explain these reasons with examples.

Please answer the question using the summary of the question requirement. Thank you.