2. Focus on operation Forget about financial calculation of inventory turn. Only forward-looking counts. Strike a balance between operation and financial burden Work on both customer & supplier side Determine the visibility of inventory model – how many weeks to look after?
3. Connotation Sharing of information Not only a model for MRP but also for asset management Use the same measurement for inventory management Decision factor for best inventory level Target inventory weeks Alert for excessive inventory Alert for loss of sales – order fulfillment Alert for obsolete inventory
4. There is no perfect state Target inventory weeks needs to be set in concerted effort Target inventory weeks can be different for different categories of materials Maximization subject to constraint Define availability of materials Define the focus of work Re-define workflow of planning & ordering Planning vs. Ordering
5. Next Project Availability of raw materials affect production schedule Change of production schedule in turn affect materials requirement