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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...

The Role of Customer Service Leadtimes

Customer response time requirements are also a significant contributor to inventory requirements. If required customer response times are longer than supplier and/or manufacturing lead times; no inventory is required. If that is not the case, then the shorter the response time requirement, the greater the inventory requirement. The increase is normally due to additional facilities required in close proximity to customers, and their associated inventory deployment requirements. As described earlier, the greater the number of inventory stocking locations, the greater the inventory requirements.

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