Unformatted text preview: ers concerning inventory; he or
she does not have direct control over inventory but does provide input to the
inventory management process. Differing Viewpoints About Inventory Level
Differing viewpoints about appropriate inventory levels commonly exist among a
firm’s finance, marketing, manufacturing, and purchasing managers. Each views
inventory levels in light of his or her own objectives. The financial manager’s
general disposition toward inventory levels is to keep them low, to ensure that
the firm’s money is not being unwisely invested in excess resources. The marketing manager, on the other hand, would like to have large inventories of the firm’s
finished products. This would ensure that all orders could be filled quickly, eliminating the need for backorders due to stockouts.
The manufacturing manager’s major responsibility is to implement the production plan so that it results in the desired amount of finished goods of acceptable
quality at a low cost. In fulfilling this role, the manufacturing manager would keep
raw materials inventories high to avoid production del...
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