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SCion : Thought Leadership in Supply Chain Management
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Thought Leadership in Supply Chain Management August 2011
We are delighted to connect with you through our Newsletters periodically to encourage a healthy knowledge sharing channel and keep you informed of Thought Leadership programs, Management Development programs and other events. The newsletter for this quarter covers Inventory Planning and Optimization. With the rising complexity of supply chains, inventory control has turn out to be decisive to supply chain excellence.
Today’s tough competition, demand unpredictability, short product life cycles, and increased outsourcing, create more challenges to manage inventory and make a choice where exactly to hold how much inventory. Too much inventory results in huge cost and on the other hand inventory which is inadequately placed can result in poor service level. Most of the firms facing inventory control problems because they fail to have proper inventory policies. Inventory Optimization policy is having the right amount of inventory, in right place, to meet customer service and revenue objectives in right time. While formulating the right Inventory Optimization strategy the company must take into account the supply, demand, and its variability across entire supply chain. .... more
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