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Inventory is a necessary element for customer service. However, it implies an additional cost that can become unsustainable for an organization.

Read the article Inventory-Driven Costs and answer the following questions:

Is HPs focus on minimizing inventory costs is feasible for a company operating in a market where delivery speed is an order-winning factor?
Would you pay a premium for a product or service price for an earlier delivery? For which type of products or services?

Calloni, G., de Montgros, X., Slagmulder, R., Van Wassenhove, L., Wright, L. (2005). Inventory-Driven Costs.  Harvard Business Review.  Retrieved from: https://hbr.org/2005/03/inventory-driven-costs.
Please cite at least 5 references in APA format.

 

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