1. Aggregate inventory data suggest that while overall average inventory levels are declin¬ing, the relative percentage being held by manufacturers is increasing. Explain why you think this observation is either true or false. Describe how such a shift could benefit the operations of the entire channel and how manufacturers could take advantage of the shift.

2. Consumers are expressing increased demand for product customization in the form of features, labeling, color, or packaging. What is the impact of this trend on supply chain inventory? What strategies can firms and supply chains use to mitigate this impact?

3. Many of the retailers and in some cases wholesalers are driving their suppliers to pro¬vide vendor-managed inventory and consignment inventory at no additional cost to the customer. In effect, the customer is looking to shift inventory risk and responsibility to the supplier without paying for il. Describe initiatives that the supplier can use to recoup some value when they have to follow these customer requirements.

4. You have been asked to establish an inventory carrying cost percent to supply your firm's supply chain planning inifiatives. Identify and describe the carrying cost com¬ponents. Review the various approaches to determine the opportunity cost component and provide the rationale for each. As part of the assignment, you must recommend which approach you would use and why?