Dear Respected Research Gate Members,
Nowadays, every company is interested to manage the appropriate level of inventory with demand. The inventory carrying costs are increasing on the one and not having inventory at the time of demand is a great loss. Now, everyone knows the impact of inventories on the profitability of the company. So, there are many practices to balance between the demand and the level of inventories. Few companing are even working with "zero inventory" concept. Please, share your expert suggestions on the following question.
Which manufacturing/management practices are more useful in managing inventories effectively & efficiently?
Thanks & Regards
It all started with the the manual method where companies manage inventory by taking supplier information and other data on paper. It was upgraded to the use of excel spreadsheets. The latest practice is the use of inventory management software (IMS) capable of managing multiple warehouses from inbound to outbound level. There are so many IMS e.g. Fishbowl, QM and so on.
Regards, MO.
You only get "zero inventory" when your distribution chain is all connected.
"minimum inventory" is more useful and applicable because you prevent possible mistakes in the distribution chain.
I do recommend lean/6 sigma as we use in GE Alstom successfully since many years ago. This reduces inventory in a natural way. Also connecting your IT systems with those of your suppliers may ensure the combined inventory at your plant and your own suppliers plants, is optimized.
I completely agree with Jokin.
Lean is the best way to implement it in a organized and natural way
Young people having to live in small 30 m2 apartaments have a very good sense of how to reduce inventory. Some times real life constraints may help us to manage better inventories.
Theoritically, you can find a lot of inventory management concept and practices. You have to think over your context before you choose the fittest one.
To acheive better inventory management apart from inside of factory , over ecosystem (quality of suppier ,Traffic condition ,Reliability of Electricity , Manpower ) . So culture & infrasturucre levelof country is also taken in factors while planning .JIT,TPM are methology to inplement better inventoey management
That depends on the type of inventory that we are talking about, is the raw material directly related to manufacturing, the finished product or those materials such as spare parts that are necessary to continue the manufacturing process in case of equipment failures?
The JIT works when you have the commitment of the delivery of the suppliers both in the quality and the timely reception of the product, that is, suppliers that are in the same certification as the company.
Regards
Synchronous management and the Theory of Constraints, encompass lean methodologies, align inventory with customer requirements, and keep your eyes on the objective of making money. I currently teach these methodologies in my operations, purchasing, and supply chain management courses, and I have implemented the same for 25 years with tremendous success.
Fully agree "Theory of Constraints" book from Mr. Eliyahu M. Goldratt was revealing to me. this helps not only to manage inventory but, more important, productivity to the goal of any business that is making profits, not keeping people busy or having nice metrics chatoticaly here and there.
It depends whether your inventory is based on dependent model or independent model. Both have separate working methods. Kindly specify.
It depends of the kind of industry you are talking about. You won't use the same methods in a made to order, batch, continuous, mass production (high runners / low runners). So your question must be more specific.
Lean technique with control on supply chain and logistics, location of warehouse, contractual agreements, blanket order, clear value network mapping technique can influence on better control of inventory in industries
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