As a Newly Hired Marketing Manager for a Major Company

Essay

As a newly hired marketing manager for a major company, your boss has told you that your brand's carrying costs are at 30 percent of inventory value and has asked you to reduce these costs. Your examination of customer "fill rates" convinces you that you must maintain high inventories in order to satisfy some large customers. What can you say (and what can you quantify) that will convince your boss that the 30 percent inventory-carrying costs is an unpleasant fact but one that you must keep?