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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...

Out of Stock Conditions

Never being out  of stock is like having an insurance policy with no deductible – the inventory carrying cost penalty is enormous. There are three alternative responses to unsatisfied demand – backordering, substitutions, and lost sales. The appropriate response depends on the unique characteristics of each item and customer.

Out of stock conditions can be handled with:

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