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In this video, Tracy Smith, the president of Numerical Insights, addresses the challenges of inventory control faced by operations leaders and supply chain professionals. Key issues include excess inventory, shortages, and unsellable items. Smith emphasizes the importance of using inventory and sales data to understand inventory usage and plan purchases effectively. Proper inventory management is crucial, as it represents a significant cost and can impact revenue. The video highlights that inventory is an expense until sold and occupies valuable physical space in warehouses or factories. Understanding these concepts can lead to better decision-making regarding purchasing strategies.