How do you balance unknown demand and varying supply lead times while meeting expected service levels?
Since each facility is different, this can be a complex question to answer. However, the first step to meet this challenge is to understand what is currently being done before attempting to improve inventory management.
Although identifying key areas of inventory improvement sometimes takes a dedicated expert team, there are some pitfalls you can avoid in the meantime.
7 Pitfalls of Inventory Management
Our System Analytics team outlines seven pitfalls every facility can make the mistake of falling into. The seven pitfalls of inventory management you can easily avoid are:
- Using Oversimplified Models
- Opaque and/or Inconsistent Parameter Definition within the Inventory Management Model
- Misunderstanding the Role of Safety Stock
- Inventory Planners Ignoring Incentives
- Mismanaging the Landslide Effect
- Forecast Bias
- Multiple Classes of Inventory
To examine each pitfall and learn how to avoid them, download the white paper now.