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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...

Life Cycle Inventory

Life Cycle Inventory (LCI) models allocate inventory to categories based on product maturities. Typical maturities include (1) Conception, (2) Infancy, (3) Adolescence, (4) Mature, (5) Aging, (6) Decline, and (7) Discontinue. An example inventory maturity curve is depicted below. Just as inventory should be optimally allocated to buckets and status types; inventory should also be optimally allocated by maturity.

An example life cycle inventory optimization recently developed for a F&B client is illustrated below. The first figure is a Life Cycle Inventory Profile. The figure highlights that the client has done an excellent job managing the number of SKUs in each phase of maturity. The second figure highlights that the client is under invested in the infancy, adolescent, and mature categories.

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