Top five techniques to achieve inventory optimisation
The top five techniques to achieve inventory optimization are, 1, reduce replenishment cycle time. This is one of the critical factors in deciding the required safety stock. Shorter lead time for inventory replenishment would lessen the complexity of supply chain.
However, due to global sourcing, this is becoming a great challenge. Lead time consists of three factors– time take to place the order, manufacturing time, including sourcing time, and transit time. What is critical in establishing the efficient cycle time is the accuracy or certainty.
There is no point having a shorter lead time with huge uncertainty. It would be easier to plan for longer lead time with minimal uncertainty.
Watch the video to find out the other four and then summarise what you have learned.
Operations Management: Process Mapping and Supply Chain
Operations Management: Process Mapping and Supply Chain
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