1. Identify the different types of inventories (raw materials, work in process, and finished goods) carried in the following organizations: gas station, hamburger stand, clothing store, and machine shop. What functions (purposes) do these inventories perform? 2. Why are stockout costs difficult to determine? Suggest an approach that might be used to estimate them. 3. What is the difference between a requirements philosophy and a replenishment philosophy of inventory management? Why is this difference important?
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