Gain a better understanding of the proper regulations needed to follow when managing inventory to best avoid consequences.
In a perfect world, a lean supply chain would have no idle inventory, material would flow continuously at the rate of customer demand. Unfortunately, even in the leanest supply chains, inbound lead times often exceed today's aggressive consumer delivery expectations. How can companies maintain the appropriate inventory levels to remain competitive? In this material, you will learn why idle inventory is considered waste and see the negative effects of having too much on hand. You will learn the importance of SKU classification (traditional ABC vs. lean thinking). We will compare the differences between cycle, buffer, & safety stock, and explain when you need each. You will not only learn new calculations for right-sizing your inventory, you will gain a deeper understanding of the inputs or levers that can be used to raise or lower inventory levels at line-side or in the warehouse.