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Inventory levels are usually maintained at high levels, due to the need to have product in stock and available when customers need it and it is turned every 6-8 months.
Michael Rothman, a Merrill Lynch analyst, said American inventory levels were 50 million barrels below normal.
"Our inventory levels are not high.
Some of the refineries are coming back on stream, and inventory levels are rising.
"Even if demand is up, inventories are still rising and inventory levels are high as it is," Weiss says.
Inventory levels are back up and sales have surged.
The inventory level is depicted in Fig. 1.
The inventory level is zero in the initial stage.
While a detailed inventory is maintained, "people do not take things.
"At a certain level, observance was maintained.
The decision making is further complicated by the lack of reliability of the production process, which imposes that an adequate, also to be designed, level of inventory of finished parts be maintained.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com