What do you mean by "excess" inventory?

What do you mean by "excess" inventory?

Postby Rex » Wed Mar 10, 1999 2:19 am

Chuck,

I've been watching your inventory control articles with great interest. I must confess to not properly sourcing for optimum control, and needing to learn and do more with it. Think about this:

Yes, milk should be in a different source than canned asparagus. But what if, for example, you have all your milk products in one source, and then GM puts whipped cream on the RSG list? Does that belong in the RSG source or in the milk products source? What if the whipped cream has not met phase-in criteria? Does it go in the RSG source, the phasing-in source, or the milk products source? What if...

Is a multi-dimensional sourcing what has to happen? What I mean is, for example, with 3-digit sources, milk sources with last digit 3, RSG parts with 1st digit 8, etc.

By the way, you hit the nail on the head for my dealership: 92% of inventory with BSL less than 2, and the remaining 8% represents 30% of the dollars.

Thanks for the helpful articles.
Rex

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Rex Vandermeer
www.dspower.com

Rex
 

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