In inventory management items often get ordered in an ‘economic’ order quantity so that the cost per item is at a minimum. This is seen to be economic because the subsequent issue cost of the item is reduced and the business, operational or project budget therefore records a lower cost.
5 Myths of Inventory Reduction
Spare parts inventory reduction has been a major focus of supply chain improvement initiatives for many years and success requires the application of both inventory fundamentals and good practice process. However, it is the encouragement of appropriate spare parts management behaviors that delivers truly sustainable results. And it is in
A Spare Parts Inventory Optimization Trap
Recently I had an interesting experience with a client that I thought that I should share. This client has been through our inventory optimization and reduction training using the Inventory Cash Release (ICR) Inventory Reduction Program but was not making progress at a rate which satisfied me or their senior management.