Is Inventory Still Evil?

“Inventory is bad, inventory is evil,” finance and operations professors intone across business schools worldwide. And every B-school graduate knows companies should balance enough inventory to meet customer needs while accommodating shifting preferences.

That said, companies face a paradox; holding too much inventory ties up valuable cash, but too little inventory is risky since some suppliers could lose their financial footing. In a global financial crisis, is inventory still evil?

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