But the recent rise in consumer spending has fueled inflation speculation, foreshadowing an inventory carrying cost upswing in the form of rising short-term borrowing rates. Couple that with a truck driver shortage and the resulting upward pressure on freight rates, 2015 may challenge CFOs of product-based companies to guide financial policy through turbulent waters.

To effectively manage supply chains, one must tame the three-headed trade-off monster. Or, simply put, balance service levels, capital and operating expenses.

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