Lean inventory management can reduce costs associated with transportation, capital expenses, and storage by minimizing excess stock and streamlining processes. Personal inventory management examples include regular grocery shopping for perishable items, which can lead to spoilage and waste; applying lean principles could improve efficiency in these situations. Organizations, such as a major airline call center, must consider aggregate planning decisions carefully, evaluating whether a chase strategy is suitable based on demand variability and resource availability.

1. Lean Inventory Management
1. Why do you think lean inventory management can decrease
transportation, capital expenses, and inventory storage?
2. List some products in your personal or family "inventory."
How do you manage them? (For instance, do you constantly run
to the store for milk? Do you throw out a lot of milk because of
spoilage?) How can lean inventory change your way of
managing these SKUs?
3. Identify a goods-producing or service-providing organization
and discuss how it might make aggregate planning decisions.
4. Provide an argument for or against adopting a chase strategy
for a major airline call center.