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Inventory Strategy: Maximizing Financial, Service and Operations Performance with Inventory Strategy

ISBN10: 0071847170 | ISBN13: 9780071847179

Inventory Strategy: Maximizing Financial, Service and Operations Performance with Inventory Strategy
ISBN10: 0071847170
ISBN13: 9780071847179
By Edward Frazelle

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An executive-level strategic guide to maximizing financial, service, and operations performance using the proven RightStock model of inventory management In most organizations, highly qualified professionals are required to respond to a barrage of typically uncoordinated initiatives from across the organization. Those initiatives normally include increasing SKUs, customization, and inventory availability while reducing customer response times, transportation costs, purchase costs, and manufacturing costs. Inventory Strategy arms them with a strategy for easily achieving this otherwise impossible task by presenting a proven, fact-based, balanced, and logical means of determining the proper role and level of inventory in supply chain strategy.

List of Figures ix
Preface xiii
Acknowledgments xvii

CHAPTER ONE
INTRODUCTION 1
1.1 What’s the Problem? 2
1.2 More or Less 6
1.3 Optimization 10
1.4 To(o) Lean or Not To(o) Lean? 17
1.5 The Inventory Journey 18

CHAPTER TWO
INVENTORY FUNDAMENTALS 19
2.1 Inventory Integrity 20
2.2 Inventory Philosophies 22
2.3 Inventory Types 23
2.4 Out of Stock Conditions 43
2.5 Planning Parameters 44
2.6 Financial Terms 47
2.7 Demand Terms 58
2.8 Decision Variables 60
2.9 Inventory Interdependencies 65

CHAPTER THREE
INVENTORY OPTIMIZATION 67
3.1 RightSKUs: SKU Optimization 69
3.2 RightCast: Forecast Optimization 80
3.3 RightTimes: Lead Time Optimization 84
3.4 RightLots: Lot Size Optimization 90
3.5 RightPloy: Inventory Deployment Optimization 95
3.6 RightSight: Inventory Visibility Optimization 100
3.7 RightRate: Inventory Carrying Rate Optimization 103
3.8 RightStock: Inventory Optimization 106

CHAPTER FOUR
INVENTORY IN SUPPLY CHAIN STRATEGY 109
4.1 Inventory and Logistics 110
4.2 Inventory and Customer Service 115
4.3 Inventory and Inventory 120
4.4 Inventory and Supply 120
4.5 Inventory and Transportation 124
4.6 Inventory and Warehousing 131
4.7 Inventory and the Supply Chain 135
4.8 Beyond S&OP 139

Glossary 147
Index 155

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