A new director of logistics has been appointed in your electronics consumer products company and you have been asked to write a briefing report about the inventory held within your supply chain. He asked that the report meets the following requirements:
a) Discuss and define the types of inventory which are held at each level of the supply chain and give justifications for the necessity of holding the stock.
b) Compare the costs of holding this stock with the risks of the supply chain breaking down and justify the inventory policy employed.
c) Demonstrate how this inventory policy supports the overall company financial objectives and the performance measures that illustrate this.