SUPPLY INVENTORY PLANNER JOB DESCRIPTION

Find detail information about supply inventory planner job description, duty and skills required for supply inventory planner position.

What does an inventory planner do?

An inventory planner is a tool that can be used by an organization to develop and manage inventory plans. An inventory planner helps you determine the necessary levels of materials needed to complete a specific order for a particular product. This information can then be used to create production schedules that ensure that the resources necessary to complete an order are available at the right time.

Is inventory planning a good career?

An inventory planner career can be a great way to start your career in logistics. As an inventory planner, you'll be responsible for creating and maintaining the optimal stock levels of products in order to meet customer demand. In addition to this, you'll also be responsible for creating and managing the inventory system, which is important in order to ensure that products are always available when needed.

What does a planner do in supply chain?

A supply chain planner is responsible for managing global inventories, forecasting sales and production levels, and handling capacity planning and various logistics projects. They are typically skilled in monitoring and managing global supply chains, as well as creating forecasts for delivery performance and response time. They can be a valuable asset in any business.

How do I become a supply planner?

A supply planner is someone who spends their time understanding the supply chain and how it affects businesses. They can help with planning and implementing strategies to ensure that supplies are always available when needed and that costs are minimized. A supply planner's knowledge of manufacturing processes and materials makes them ideal for helping with the development of new products or expansions.

What are the 4 types of inventory?

The four main types of inventory are raw materials/components, WIP, finished goods and MRO. Raw materials/components include everything that is not being used in the product. This could be anything from metal parts to screws. WIP is the process of designing and testing a product before it is released to the market. This could involve designing everything from the packaging to the labeling. Finished goods are products that have been completed and are in their final form. This could be an article that has been designed, made, and tested; or a product that has been produced but has not yet been sold. MRO stands for Merchandise Redesign which is a method of improving sales by redesigning products

What is the difference between supply planning and demand planning?

Demand planning is a process of forecasting customer demand while supply planning is the management of the inventory supply to meet the targets of the forecast. Demand planning can help businesses to anticipate needs and plan for future growth. By understanding customer demand, businesses can make better decisions about how best to allocate resources and produce goods and services.

What skills are required for inventory management?

Looking for a talented inventory manager to help manage your store's inventory? Monster has you covered! With skills in leadership and management,verbal and written communication, organizational and logistics, as well as problem solving, this individual will be a great asset to your business. Are you looking for an opportunity to lead and manage a team? Look no further than Monster!

What education is needed to become an inventory manager?

If you're looking for a career in inventory management, it might be a good idea to consider a degree in business administration. This field provides you with the experience and skills you need to manage your inventory, as well as your supply chain. A business administration degree can help you find a job in a company that needs your skills, and it can also give you the knowledge and skills to run your own business.

Is supply chain a career future?

In today's world, the logistics and supply chain management field is one that is quickly emerging as a highly desirable sector for employment. This industry is home to some of the most exciting and cutting-edge technology, which allows companies to manage their operations more efficiently and effectively. As a result, this field can provide an exciting and high-tech career path for those who are interested in working in this area.

Why do a supply planner?

A company's production plan addresses the production and manufacturingmodules within a company. The objective is to balance supply and demand in a manner that achieves the financial and service objectives of the enterprise. Production planning can help to achieve this by identifying the necessary resources and equipment needed for a particular project, as well as byocating these resources to create the most efficient production process.

Are supply chain jobs in demand?

Logistics and supply chain management are some of the fastest growing fields nationwide. The Bureau of Labor Statistics projects that employment of logisticians will grow by 30 percent from 2020 to 2030. This is due in part to the increasing demand for goods and services, as well as the advancement of technology. Logisticians have a wide range of skills and knowledge that they can use to help businesses achieve their goals.

Is supply planning hard?

"I love working in a supply chain. It's such a fast-paced, demanding and competitive industry. It's important to come to work and give it your all. The logistics industry is so fast-paced that it can be pressurepacked at times. However, I love the challenge of trying to make every move in the company and helping contribute to the success of the team." - source.

How do you prepare inventory?

As the owner of a small business, one of the most important things you can do is keep track of your inventory. yourself and your staff can spend hours trying to figure out how to best use what you have, but it's important that you have a clear way to track inventory so that you can make informed decisions about where to allocate your resources. One way to do this is through an inventory report. This report will help you identify which items are in high demand and which ones may need to be replaced soon. You can also use this report as a way to communicate with your customers and employees about how much stock they will need in order to meet their expectations.

What are 5 types of inventory?

Inventory can be a one word term that describes the various items in a business's stock. It can either be physical items such as raw materials, component parts, or work in progress, or it could be software items such as software applications or manuals. The main types of inventory are raw materials, maintenance, repair, and operating (MRO) inventory, decoupling inventory, and finished goods inventory. Raw materials inventory is the most important type of inventory for any business. This is because it stores the most essential ingredients for making products. It can include anything from metals to plastics to software applications. Maintenance, Repair, and Operating (MRO)inventory is another important type of inventory for businesses. This includes items that need to be done regularly in order to keep the business running well. These items might include repairing machines or systems, setting up new systems, or changing out old equipment. Decoupling Inventory is another common type ofinventory used by businesses. This means splitting an entire batch of products into different containers so that they can be sold separately instead of together. This can help businesses save money on shipping costs and make sure that they have enough product to meet their needs when demand increases.

What is supply chain inventory?

Inventory is a critical element in the supply chain because it stores goods and materials in anticipation of selling them to customers for profit. Inventory management is the process of tracking inventory from manufacturers to warehouses and from these facilities to a point of sale. This ensures that all items are at the correct level and that troops have enough supplies for when they need them.

What is supply planner?

A supply chain planner is responsible for predicting stock levels and ensuring the business runs smoothly. They work with the company's engineers to design effective logistics solutions that keep customers happy.

How do I get a job in inventory management?

Most warehouse jobs are customer service and stocking jobs. They may require some basic computer skills. The pay is good, and the hours are flexible.

What are the interview questions for inventory management?

Inventory management is an important task that requires expertise in many different areas. Inventory calculation is one such area, and Breezy HR can provide you with the necessary tools to help you do your job effectively. Calculating inventory value is a simple task that can be completed with a few steps. First, determine thequantity of items in the store and then subtract the price of those items from the total amount of inventory. This will give you the total cost of goods sold. Next, determine how much space is available for selling products. This can be done through crawling or searching through customer records. Once space has been determined, multiply the cost of goods by the number of products to find the average price per item sold. Finally, add all of these costs together and calculate the inventory value. Breezy HR can help you with all of these calculations, so it's important to call us if you need assistance calculating inventory values and other critical business information. They would be happy to help you get started on your next warehouse management project!

What is the main role to manage inventory?

As an inventory manager, you are responsible for ensuring that your business has the correct amount of stock in order to meet customer needs. You lead a team of employees to receive and record new stock as it is delivered and shipped out. By analyzing different suppliers, you can ensure that your business is getting the best possible value for its stock.

Is inventory management a skill?

An inventory manager must be able to communicate effectively with their team, as well as customers. They need to be able to keep up with changes in the industry, and be organized in order to make sure everything is accounted for. This position can also require some good organizational skills, as well as the ability to write clear and concise reports.

Who is responsible for inventory control?

An inventory management solution can make your life a lot easier. An inventory manager is responsible for ensuring that your organization has the right amount of stock to meet customer needs and also to avoid overstocking items, which creates storage issues. With an inventory management solution, you can keep your business running smoothly and avoid any problems.

What is your experience with inventory management?

Inventory management is a critical task in any business. It?s important to be able to understand and manage the flow of inventory, as well as the storage of goods. This can help manage your business?s expenses and make sure that you have enough products to meet customer demand.

Is supply chain a high paying job?

In the year 2021, supply chain salaries remain solid even during a global pandemic. The typical salary for individuals entering supply chain is $60,000. The median salary is $86,000 and $90,000 for professionals with APICS/ASCM certifications. Supply Chain professionals have plenty of opportunities to make a good income and enjoy a successful career.

Is supply chain management stressful?

In today's business world, there are a lot of demands on companies' resources. Sometimes the demands can be too much for some people, and that's where supply chain management comes in. Supply chain managers need to be able to handle stress and keep morale high. Supply chain management is a job that involves handling a lot of different tasks, from shipping products to stocking inventory. It can be difficult to stay organized and on top of things, but supply chain managers need to be able to do just that in order to keep the company running smoothly. If you're looking for a career that will require you to make difficult decisions and work under pressure, then supply chain management may be the right option for you. With experience in this field, you'll be well-equipped for any situation that comes your way.

Is supply chain a good degree?

Many businesses require a supply chain management degree or certificate in order to be successful. This degree can provide you with a great career with an impressive salary and plenty of opportunities for advancement.

Do you need a degree for supply chain management?

supply chain management is the process of ensuring that products and materials entering a company are adequately stocked, processed and delivered to customers in a safe and efficient manner. Supply chain managers must have a strong understanding of both the business of the company and the logistics involved in shipping goods. They must also be able to manage multiple sources of communication, including people, technology, and production.

How do you prepare for a supply chain interview?

prepared for a phone screen When you go to the interview, you'll be asked to take a job. You'll need to dress appropriately, and you should be prepared for the questions that will be asked. You should also practiceInterviewing, so that you're ready when the time comes.

Is supply chain management a dying career?

The current supply chain is being disruptions, but it's not dead or dying. It's evolving, just as it has since its inception.

Is supply chain an easy job?

As a supply chain and logistics management professional, you'll be able to make a real impact in your work. With the right skills and education, you can help businesses operate efficiently and safely, while also contributing to the growth of your industry.

Does supply chain management use a lot of math?

A recent study found that a majority of companies use mathematical models to optimize their supply chains. By using mathematical models, companies can better predict where and when shortages will occur, and make choices accordingly. This allows them to maintain control over their production and minimize waste.

Why is supply chain a good career?

A supply chain career is an excellent option for anyone who is interested in finding a career that they can grow in and use their skills for. There are so many different paths that you can take, and as your goals change you can easily change to fit the needs of your company.

How do I become inventory planner?

An inventory planner is a professional who helps manage and track inventory in a business. This person has experience with data modeling, data set analysis, and inventory control standards. An inventory planner can help improve the efficiency of a business by tracking the stock of products and ensuring that needed supplies are always available.

What do you do in an inventory job?

Maintaining and Updating Records Keeping track of records is essential for any business. Records help to ensure that transactions are logged and recorded, helping to improve efficiency and organization. It is also important to keep accurate records of inventory, materials, and equipment in stock. If discrepancies are found between physical counts and computer records, then it is necessary to correct them. In addition, it is important to receive and inventory stock. This will help ensure that all necessary supplies are available when needed.

What does an inventory analyst do?

Inventory analysts help the retail, wholesale, distribution, and manufacturing sector by analyzing purchasing data to help the organization make the right decisions about what to buy and when to buy it. This information can help the company produce more efficiently and accurately. Inventory analysts are also known as purchasing managers.

What is a stock planner?

When it comes to sales, no one can beat the team of experts at the Sales Desk. They are responsible for ensuring that products are stocked in a way that meets customer needs, and that sales potential is maximised. This is done by coordinating the purchase of bought in finished goods, as well as providing support to the Sales Desk and customers on stock availability issues. This position is important because it allows for efficient planning when it comes to production output and co-ordination of buying power against acceptable inventory levels.

Is inventory a hard job?

Taking inventory can be a time-consuming and difficult process, but using the information you gather from taking inventory to benefit your restaurant can be much more efficient. By using the figures you gather, you can create accurate lists of equipment and supplies needed for your business. This way, you can plan your menus and create a better overall strategy for running your restaurant.

What is the difference between demand and supply planner?

Demand planning is a process that helps entrepreneurs and business owners to understand their customers? needs and anticipate when they might want to buy something. This can help them to plan their production in advance and ensure that they have enough inventory to meet customer demand. Supply planning is a more important process in the business world. It helps managers to predict how much inventory they will need to produce a product, and how much will be available at any given time. This can help them decide whether or not to produce a product, and whether or not to sell it out early.

How can I be a good supply chain planner?

In today's economy, businesses of all sizes are increasingly looking to outsource their supply chains. This move can be a great decision for several reasons: first, it can save you money on costs; and second, outsourced supply chains can often be more efficient and transparent than those within your own company. A successful supply chain manager must have strong math skills combined with strong analytical and statistical capabilities to understand supply and demand issues. They must also be able to use data to track orders and shipments, sales trends, demand and any weaknesses and inefficiencies. If you're looking for someone who can help your business outsource its supply chain, look no further than a successful supply chain manager. These individuals are essential in ensuring that your supplies arrive on time, without any problems; that your products are of the highest quality possible; and that your customers are satisfied with the products they purchase from you.

What is a job inventory?

An inventory list of equipment, inventory and other materials to be installed at a specific project or job site is not reflected on the balance sheet of the Loan Parties. This allows for more accurate pricing and avoids potential conflict over who should have access to the equipment and materials.

What qualifications do you need to be an inventory clerk?

Inventory clerks typically need only a high school diploma or a General Educational Development (GED) certificate. However, many companies also seek a candidate who has several years of inventory experience in their particular field, such as retail or manufacturing. Inventory clerks are responsible for pack and unpack products into and out of stores, tracking sales and inventory levels to ensure that products are available when customers need them. Because they handle large amounts of inventory, it is important for Inventory clerks to have good attention to detail and be able to work independently.

Is inventory control a skill?

The Inventory Controller is responsible for ensuring that the company has a regular inventory level. This is done by developing plans to track inventory, conducting regular audits and organizing shipments. This skill allows the controller to ensure that the company always has a stock of what it needs.

How does Inventory Optimization work?

Inventory optimization is the process of maintaining the right amount of inventory required to meet demand, keep logistics costs low, and avoid common inventory issues such as stockouts, overstocking, and backorders. Inventory optimization can help reduce costs associated with inventory management including shipping and handling, manufacturing costs, and lost sales. One way to optimize your inventory is by using a variety of methods such as weighted average cost of goods sold (WACSO), price per unit (PPU), or average cost of goods used (ACOGU). These methods allow you to take into account factors such as demand, price sensitivity, and product distribution. By using these tools, you can make informed decisions about how much stock to keep on hand and when to order additional supplies.

What is multi echelon inventory optimization?

There are many different ways to optimize your inventory levels, but the most common method is called multi-echelon inventory optimization. This involves combining all of the distribution levels to help improve your inventory levels overall. This can help you save money and improve your customer service.

What inventory means?

The store had an inventory of books and magazines that they were selling. They had a large selection of books that they were selling for a very low price. They also had a large selection of magazines that they were selling for a very low price.

What is a supply plan?

Planning is the entire process which includes distributing, manufacturing, and procurement operations according to demand forecasts, considering capacity constraints and material availability. It is important for businesses to have a clear understanding of what they need in order to produce the goods they need and when they will be able to produce them.

What are the 3 major inventory management techniques?

Most businesses use the push technique to meet customer demand. This strategy involves putting pressure on suppliers to ship more products quickly. business owners use this technique to guarantee that their products are in stock and that customers will not wait too long for their favorite items. The pull technique is used when businesses want customers to select a specific product from a catalog. This strategy allows businesses to ensure that they are meeting customer demand and ensuring that they do not run out of stock. The just-in-time technique is used when businesses want to minimize the amount of time they spend on inventory management. This strategy involves stocking only the necessary items and having them delivered to customers as soon as possible.

What is the best way to manage inventory?

Inventory management is an important part of any business. It ensures that your business has the appropriate supply of the items it needs to function properly. There are a number of ways to optimize your inventory, and depending on your business, one method may be more effective than another. One way to manage your inventory is by tracking all product information. This will allow you to understand which products are selling and which products are not being sold as expected. Additionally, you can use this information to plan future stock sales. Another way to manage your inventory is by using the 80/20 rule. This rule states that 80% of the time something is used, it should be replaced. Therefore, if you have a lot of item X in your inventory but only use 20% of them, then you should replace all the items in order to make space for new stock. Finally, it is important to be consistent with how you receive stock. If you are not receiving stock regularly, then it can lead to lost sales potential and decreased customer satisfaction levels.

Why is inventory management so difficult?

Predicting how much stock a business will need can be difficult, but knowing what services it offers and how quickly it might need new inventory can help. By understanding the company's needs and then crafting a plan to meet them, businesses can avoid overstocking or costly mistakes.

What does a inventory manager do?

The Inventory Manager is responsible for ensuring that businesses have the necessary inventory to meet their needs. They lead a team to receive and record new stock as it's delivered or shipped out by analyzing different suppliers, recording daily deliveries, and evaluating new shipments. By managing the inventory levels, businesses can ensure that they are supplied with the products they need at the best possible price.

What makes a good inventory manager?

An inventory manager is important in any business. They should be proactive, not reactive. A good inventory manager should be able to research the current situation with inventory, make forecasts for the future, and always have a backup plan for emergency cases.

Is working in supply chain fun?

In the supply chain industry, you meet incredible people who are constantly working together to make things happen. The industry is fast-paced and critical-thinking, which can be fun and stressful. The people you meet are amazing and make the experience so much more fun.

Is supply chain a high demand job?

Many industries rely on supply chains to manage goods and components in order to create a product that is reliable and consistent. By understanding the different aspects of the supply chain, businesses can optimize their processes and ensure that they are meeting customer needs. In the supply chain management field, there are a number of different areas that may be of interest. One such area is supply chain management, which deals with the entire process from finding and sourcing goods to delivering them to customers. It is important to note that this field encompasses not just manufacturing but also service sectors such as IT and retail. Another important aspect of the supply chain is transport management. This involves ensuring that goods are moved safely and efficiently between factories and customers. It is also important to understand how transportation affects demand in order to optimize production plans. In terms of logistics, it is important to understand how goods are transported from one place to another in order to make sure they are delivered on time and without any problems. This includes understanding how shipping containers work, as well as measuring distances between locations in order to minimize delivery times.

What is S&OP supply chain?

Sales and operations planning (S&OP) is a process for better matching a manufacturer's supply with demand by having the sales department collaborate with operations to create a single production plan. The broader goal is to align daily operations with corporate strategy. Sales reps and managers work together to create a plan that will help manufacturers meet their target sales goals while optimized for efficiency. By aligning daily operations with corporate strategy, manufacturers can improve overall performance and maintain control over their manufacturing process.

Why demand and supply planning is important?

Businesses that are well organized and have a plan for meeting customer demand can be more profitable and satisfied customers. This process begins with knowing what the customer's wants are and then creating products that meet those needs. Additionally, having excess inventory can be avoided by managing resources efficiently and ensuring that products are always available to meet customer demand.

Why do you want to work in supply chain interview questions?

In the supply chain, there is a delicate balance between production and consumption. This means that when one party exceeds their original forecast, the other must balance their own needs with the increased production. To ensure that this doesn't happen, companies need to have a clear plan for managing their inventory and ensuring that they are not running out of products. A key part of this plan is ensuring that products are delivered in a timely manner so that consumers can have their product before it runs out. Another important part of the supply chain is ensuring that goods are properly packaged and stored so that they do not get damaged or contaminated during shipment. Overall, the supply chain is an important part of any business, as it helps to ensure that products are brought in stock at the right time, and that consumers receive the product they ordered.

Is supply chain management a skill?

Most important project management skills for a supply chain leader are the ability to negotiate successfully for resources, budgets, and schedules. A high degree of personal organisation is also essential, as is a proactive approach to risk management. With these skills in hand, a supply chain leader can help manage their company?s projects with relative ease.

What skills are required for supply chain managers?

In a future supply chain, managers will need to have strong Project management skills as well as technical understanding of different systems. They will also need to be able to understand financial statements and be able to identify potential problems with e-commerce or e-procurement systems. Additionally, they will need to be able to understand cross-cultural and global issues in order to make informed decisions about where to allocate resources.

What do you call a person who does inventory?

The Inventory Clerk is responsible for keeping track of the inventory in a store or warehouse. They must sign off on shipments, count the number of available products, and place orders for more inventory according to demand. The Inventory Clerk is an essential part of any business.

What is a skills inventory list?

A skills inventory is a comprehensive list of all the experiences, professional skills, and educational qualifications of employees in an organization. It can be helpful in understanding the needs of employees and determining which skills are necessary for the job.

What do you put on a resume for inventory?

Inventory management is a critical role at many companies. It oversees the stock of goods and services in an organization so that it is available when needed and can be sold when desired. Inventory management typically falls into two main categories: on-the-job tasks and off-the-job tasks. On-the-job tasks include things like stocking shelves, organizing shelves, and counting inventory. Off-the-job tasks include things like ordering supplies from suppliers, tracking inventory, and managing barcodes. One of the most important aspects ofinventory management is ensuring that the correct amount of inventory is present at all times. This can be done by checking stocks daily, ordering supplies from suppliers on a regular basis, or tracking inventory in a computer program. A great way to show your skills in inventory management is to have Experience Inventorying Goods & Services - United States Patent & Trademark Office (USPTO). A minimum of three years should be spent Inventorying Goods & Services - USPTO as a technician or manager before being able to take on aninventory role at a company.

What is supply chain inventory optimization?

Supply chain inventory optimization is a method of balancing the manufacturers' capital investment constraints and goals along with the defined service-level goals over a large assortment of stock-keeping units (SKUs) while considering all demand and supply volatility situations. By doing so, it allows for greater flexibility and efficiency in manufacturing products.

What is inventory planning in retail?

Retail inventory management is the process of ensuring you carry merchandise that shoppers want, with neither too little nor too much on hand. By managing inventory, retailers meet customer demand without running out of stock or carrying excess supply. By managing your inventory, you can ensure that you have enough products to satisfy customer demand while reducing the overall cost of your business.

What is Meio in supply chain?

MEIO is a time-tested advanced mathematical algorithm that accurately models inventory flows through the interdependent stages and locations of a supply chain, and analyzes historical behavior under all conditions. This information can help to optimize inventory levels and improve the overall efficiency of the supply chain.

What is meant by cycle inventory?

The Cycle Inventory for a company is the inventory of products, materials and raw ingredients that a company keeps to fulfill its minimum production quotas. This important inventory helps the company run its business smoothly by ensuring that it has enough items to meet its production needs at all times.

How do I start a career in inventory management?

It is no secret that many finance jobs are in demand. For those who have the qualifications, there is always a great opportunity for a career in finance. associate degrees in finance or accounting can provide you with the necessary skillset to pursue a career in this field. Experience in warehousing or inventory control is also essential, as this will give you an understanding of how companies operate and how to keep their inventory at a manageable level. Database and inventory management software is another essential skill set for a career in finance. This software can be used to manage financial data, track sales and inventory, among other things.

What is inventory management job description?

The Inventory Manager is responsible for managing the inventory levels of a business. They lead a team to receive and record new stock as it's delivered or shipped out by analyzing different suppliers, recording daily deliveries, and evaluating new shipments. This position is a essential part of any business, and with the right skills, this position can help your business run smoothly.

What is product inventory management?

Inventory management is a process of ordering, storing, using, and selling a company's inventory. This includes the management of raw materials, components, and finished products, as well as warehousing and processing of such items. Inventory can be a challenge because it can affect the company's overall financial performance.

What skills make you great at what you do as an inventory specialist?

The Inventory Specialist skillset that this company desires are those who are comfortable working with data entry and ERP systems. They know how to use these systems to create accurate and efficient reports. This particular skillset is necessary for companies that do a lot of manufacturing work, as well as those in the food industry.

How do you write a supply chain plan?

When it comes to business, nothing is more important than having a well-oiled supply chain. This means having the right ingredients in the right location at the right time so that your products can be sold and delivered on time.

How do I calculate inventory?

Usually, when businesses calculate ending inventory, they add back in any supplies that have been ordered but not yet received. This way, they know their final inventory count is always positive. However, if a business has made any sales or purchases in the meantime, then their final inventory count will be negative.

What is the job title for inventory?

Inventoryclerks are responsible for keeping track of the stock in a store or warehouse and managing orders to facilitate sales or production. They may also sign off on shipments, count the number of available products, and place orders for more inventory according to demand.

What are the 4 types of inventory management?

It is important to understand the different types of inventory management so that you can effectively manage your inventory and ensure accuracy in your sales records. Raw materials, work-in-process, and finished goods are all different types of inventory. Raw materials are materials that have not been processed yet and must be delivered to the plant ready for production. They include raw materials such as wood, metal, cloth, or plastics. Work-in-process is when a company is producing products but has not yet completed the manufacturing process. The products will still be in the raw material stage until they are finished and packaged. This process can take weeks or even months. Maintenance is when something needs to be done to keep a product in good condition so it can be used again. These may include cleaning, lubrication, and calibration. The last type of inventory management is Repair and Operations which includes repairs to products as well as taking down machines or altering production processes in order to fix problems with products.

What are the 3 types of inventory?

Inventory can be a challenge for manufacturers because it affects their business development and profit margins. Raw materials, work-in-progress, and finished goods can all be difficult to keep track of and manage. Manufacturers must be careful not to overspend on inventory or they will have to reduce their production or face decreased profits.