by Narayan Laksham
This is a common dilemma that constantly plagues supply chain professionals. The traditional supply chain paradigm supports the belief that reduction of inventory will lead to increase in part shortages and subsequently lower service levels. This paradigm is constantly being reinforced by credible sources such as the Wall Street Journal as evidenced in this WSJ article by Mark Gongloff where he seems to suggest that more inventory = more growth. However, this is just not true….under the new supply chain paradigm!.