Know which inventory deserves attention
Use ABC analysis so high-value SKUs get the tightest control.
The move: use ABC Analysis / Pareto Classification to turn inventory noise into a specific control. Know which inventory deserves attention matters because inventory is both a service promise and a cash commitment. A weak process treats every shortage as a reason for more stock and every excess report as a reason for cuts. A stronger process asks what mechanism produced the signal. Annual usage value points to control intensity. Lead-time demand points to reorder timing. WIP and throughput point to flow time. SCOR points to process ownership. Use this as a practical sequence: name the SKU or queue, identify…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in