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There are no specific level of inventories which are more desirable as they are allowed to fluctuate so that production can be adjusted to its most efficient level. (Meredith & Shafer. 2007)
Effective inventory management is important to the operations department which holds the responsibility to control the firm's inventories. And this control of inventories must be through the value chain which includes the suppliers, the company, distribution centers and the customers.
A lack in inventory information can cause major issues for the company such as an excess in stock. Companies with large inventories such as Cameron Balloons may still run out of materials because they may have too much of one particular material and not enough of others...
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