Three elements of a successful inventory management system entail supply and demand patterns, raw materials, and distribution inventory. Supply and demand patterns allow companies to estimate production needs based on sales. This element is highly important due to needing inventory based on the patterns and how sought after a good is based on the consumer. Raw materials also is a key element in a successful inventory management system as without sourcing raw materials the goods cannot be produced. "If supply met demand exactly, there would be little need for inventory. Goods could be made at the same rate as demand, and no inventory would build up" (Arnold, Chapman, & Clive, 2017). Lastly distribution inventory is a element that provides distribution throughout the company in various areas. Having this inventory will allow the companies to get the goods more efficiently to the consumer based on the area. Without these three elements inventory management would be difficult to manage, and sales would potentially suffer. The functions of inventory consist of anticipation inventory, fluctuation inventory, lot-size inventory, transportation inventory, hedge inventory, and MRO. Anticipation inventory is inventory that is built up ahead of the season, or threat of strike, or even change in production. Fluctuation inventory is unpredictable fluctuations in sourcing material or manufacturing that can change the inventory. Lot-size inventory is inventory manuf