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Inventory Reduction
Inventory Reduction
Harshi 12609045
Sakshi Jain 12609011 Poonam Gupta 12609190
3/18/2014 Inventory Reduction 1
What Is Inventory ??
Inventory is the raw materials, component parts, workin-process, or finished products that are held at a location in the supply chain. Possessing a high amount of inventory for long periods of time is not usually good for a business because of inventory storage, obsolescence and spoilage costs. However, possessing too little inventory isn't good either, because the business runs the risk of losing out on potential sales and potential market share as well.
3/18/2014
Inventory Reduction
When you only carry the inventory necessary to meet near-term customer demand, you free up working capital to invest in other business needs. Prioritizing where to put money in the short-term to drive business growth is key to getting the ball rolling toward long-term financial success.
3/18/2014
Inventory Reduction
3/18/2014
Inventory Reduction
3/18/2014
Inventory Reduction
3/18/2014
Inventory Reduction
Reducing Inventory
Reduce lead times
This will allow a downward adjustment of safety stocks, and an improvement in availability. If supplier lead times can be reduced to below the required lead time to the customer, this will remove the requirement to hold stock altogether. Halving lead time should reduce safety stocks by about 30% for the same availability.
3/18/2014
Inventory Reduction
Reducing Inventory
Optimize Your Network Design
In multiple-echelon operational networks across large geographical areas, significant inventory reductions can be made through network design optimization. The fewer stocking facilities used the better, as safety stock inventory is proportional to the number of warehousing locations. Often, a reduction in the number of these facilities results in a significant decline in inventory and overall inventory costs.
3/18/2014
Inventory Reduction
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Reducing Inventory
Lean manufacturing
Making value flow at the pull of the customer, the idea of Just in Time (JIT) production. This will cause us to remove the main cause of inventory that of overproduction.
Look at factory and cell layout and balance your production processes to ensure that work in progress does not build up between processes, it is not important to run every machine as fast as it can be run, at the end of the day we only need to make things as quickly as the customer wants them, no faster; Kanban can be used to help ensure that we balance our processes and prevent the build up of inventory.
3/18/2014
Inventory Reduction
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Inventory Reduction
3/18/2014
Inventory Reduction
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3/18/2014
Inventory Reduction
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