PURPOSES OF INVENTORYPURPOSES OF INVENTORY
To maintain independence of To maintain independence of operationsoperations. A supply of materials at. A supply of materials ata work center allows that centera work center allows that centerflexibility in operations.flexibility in operations.
To meet variation in product To meet variation in productdemanddemand. If the demand for the. If the demand for theproduct is known precisely, it mayproduct is known precisely, it maybe possible to produce the productbe possible to produce the productto exactly meet the demand.to exactly meet the demand.