Any company that attempts to reduce inventory and its associated costs brings its own unique advantages and challenges to the battle. Managing for optimal inventory levels is a critical objective that requires diligent attention and daily action to maintain the hard-fought advantage. The results, however, measured through improved customer service, increased sales, reduced costs, and ultimately, more profitability, are worth the effort.

For more than 24 years, Demand Solutions has helped thousands of customers manage for optimal inventory levels. During that time, the company has encountered frequent misconceptions about inventory planning based on outdated practices, short-sighted thinking, or simply inexperience. This article identifies the 10 most common mistakes and lists their “symptoms” to make each error easier to diagnose. The symptoms are followed by practical solutions to help companies solve these problems to begin reducing inventory-associated costs and their performance-sapping consequences.

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