“Inventory: Endangered Species or Tempting Target?”
Industrial Management
July/August 2007, pp. 20-25
This article addresses three different ways to reduce inventory:
- Direct reduction of physical inventory—Methods here include
- Lean Production to reduce work-in-progress
- Modular Product Design to reduce the number of components
- Mass Customization to reduce finished goods inventory
- Quick-Response Systems to reduce in-transit inventory
- Accurate Perpetual Records to reduce order errors
- Supply Chain Management to reduce inventory in all forms
- Reverse Logistics to reduce waste
- Quality Management to reduce defects and waste
- Indirect reduction of physical inventory—Methods here include
- Use more efficient equipment
- Improved motor vehicle performance
- Videoconferencing for less travel
- Scheduling optimal delivery routes
- Environmental control of facilities
- Secure shipping containers to reduce packaging materials
- E-commerce to reduce forms and paper
- Reverse logistics to reduce indirect materials
- Direct substitution to reduce a physical, three-dimensional product to an electronic format—Methods here include
- Cash to checks to credit and debit cards to electronic funds transfer
- Written calendars to PDF
- Print to digital books
- Letters to e-mail
- Patient files in folders to electronic files
- Product drawings to CAD files
- Film to electronic cameras
- Clay models to simulations
- Actual to simulated testing
- Training manuals to LCD display
- Office records to portable tag
- Photocopies to flash drives
- Retail store to website
- Physical audio-recordings to downloads
- Manual tax forms to e-tax returns
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