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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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