Abstract
Although there remains scope for further improvement, we have begun to make manufacturing inventories work more effectively. Through JIT/MRP II companies have both improved service levels and increased inventory turnover, increasing their reported ROI. Yet, looking at many of these companies, one sees unnecessarily large stock holding (mainly off-balance sheet) in consumables, maintenance spares and tooling. This paper explores the extension of P&IC methods to these “hidden inventories”, showing how cash can be released and manufacturing plans made more secure (by avoiding shortage of critical resources).
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References
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Kaplan and Johnson “Relevance Lost” Harvard University Press
In addition to the JIT literature, contrast the views on achievable inventory turnover in the Anderson, Schroeder etc., study MRP systems: State of the Art. Production Inventory Management fourth quarter 1982 and the Laforge, Sturr study in 1986
CAM-I, Cost Management Studies in the USA and UK.
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© 1992 Department of Mechanical Engineering University of Manchester Institute of Science and Technology
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Levy, J.M. (1992). It’s Time to Tackle the Hidden Inventories. In: Atkinson, J., Barrow, G., Burdekin, M., Chitkara, N.R., Hannam, R.G. (eds) Proceedings of the Twenty-Ninth International Matador Conference. Palgrave, London. https://doi.org/10.1007/978-1-349-12433-6_24
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DOI: https://doi.org/10.1007/978-1-349-12433-6_24
Publisher Name: Palgrave, London
Print ISBN: 978-1-349-12435-0
Online ISBN: 978-1-349-12433-6
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