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KNOWLEDGE LIBRARY

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27Jun

Warehouse Occupancy Percentage

Optimal storage utilization helps enforce healthy inventory management. In our early work with Honda their...

02Jun

Efficient Procurement Inventory

Efficient procurement inventory (EPI) is often required to realize steep discounts when a special opportunity...

02Jun

Inventory Carrying Rate

The inventory carrying rate (ICR) is the percent of the unit inventory value used to...

26Jun

Inventory Activity Profiling & Data Mining

Suppose you were sick and went to the doctor for a diagnosis and prescription.  When...

27Jun

Inventory Performance Measures

Inventory performance measures include financial, productivity , quality, and response time indicators for evaluating the efficiency and...

ABC Days-on-Hand Profile

The figure is an example ABC Days-On-Hand Inventory Profile.  The profile illustrates the average days-on-hand of inventory in ABC item tegories. Days-on-hand reporting is often more effective than percentages or turns because of the mental comparison that is easily made between days-on-hand and typical item lead times.nThe example is typical, where C items may have nearly a year or sometimes many more days-on-hand.  In the example, nearly 70% of the items have an average of 230 days-on-hand (more than 6 months worth of supply).  Depending on the type of business (this was a retail business), this often represent a dramatic opportunity for inventory reduction through item elimination and/or outsourcing the supply of those items.

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