For a client firm needing a new inventory management policy responsive to demand requirements…
Key Business Issues
- High lost sales due to frequent out-of-stock situations (~7%)
- Lack of a formal policy on how much Finished Goods inventory to maintain
- Current inventory policy does not reflect large variation in forecast and production run strategy
Services Provided
- Development of Finished Goods inventory policy reflecting current organization and systems capability.
- Three-month pilot run of new inventory policy
Solution Components
- Inventory Concepts Training
- Impact of Production cycle and Demand variation on inventory level
- Master Production Scheduling concept Training
- Impact of Quality Control lead time on inventory
Business Results
- Met fiscal year sales volume objective
