Is Inventory Still Evil?

January 31, 2009
105 Views

“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?

read more


“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?

read more
Link to original post