
350 Principles of Supply Chain Management
integrated so that managing excess inventories is an ongoing part of the management
process and not a piecemeal attempt at a quick x.
A life cycle model implies excess inventory occurs as a regular part of doing business
and must be managed in a systematic manner. Managers are aware of their potential,
recognize quickly when they do occur, and have a preplanned way to dispose of them
without causing a major disruption in the business. The following discussion looks at this
life cycle in more detail.
Figure 10.3 is a diagram of the life cycle model. The left side shows the creation of excess
inventories ...