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Inventory Optimization

idea generation for working capital efficiency

shinichi hayami

on 5 December 2012

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Transcript of Inventory Optimization

There are NPI !!!
(Non-Productive Inventory) Inventory Monitoring Safety Stock
Under QC
Trial Product
Inferior products
Slow moving
NPI Production/Operation Process Capability (Supply, PLM, Sales, ...) Monitor
Execute Root Cause Analysis &
Corrective Actions Forecast Accuracy
Safety Stock Level
Forecast Consumption Risk Factor
Internal Spec.
Statistic Analysis Forecast Accuracy Improvement Leading Indicator
Demand Sensing
What else ? Gate Keeper - reduce our working capital efficiency
- losing capital cost
- meaningless carrying cost
- more ... visible things are tip of iceberg need immediate action for Inventory Optimization Product Rationalization - Portfolio Management
- Phase-out
- $/Hr
Full transcript