Emilio manufactures high-quality athletic cleats for soccer…
Emilio manufactures high-quality athletic cleats for soccer and other sports. He has a large storage facility at the manufacturing plant because he maintains a large inventory of shoes. He keeps them on hand so he will never be out of stock when they are requested. He also keeps a large quantity of materials on hand to rapidly make shoes if he doesn’t have the shoes that are ordered in his storage facility. The holding costs of all the storage is causing a huge financial drain on his business. Emilio has come to you for advice about how to eliminate these overhead costs. What is your best advice to him?