Problem
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:
1) Is HP's focus on minimizing inventory costs is feasible for a company operating in a market where delivery speed is an order-winning factor?
2) 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.