Three Little Words
Inventory reduction programs require alignment of technology, infrastructure and culture
By Richard E. Crandall and William “Rick” Crandall
Although the call to reduce or eliminate inventory is strong, business managers face conflicting priorities. They want enough on hand to prevent shortages, but not so much to raise holding costs or require markdowns of excess merchandise at the end of a season. Accountants call inventory an asset; practitioners call it a liability in some contexts. Most consumers want variety but can be overwhelmed by too many choices. Marketing managers desire more inventory with various models; accountants demand less; and production managers want long and standardized runs. Everyone has an opinion; yet, there are few, if any, universal solutions to the many facets of inventory management.
You must be an IIE member to have full access to this content. Please log in at the top right corner of this Web page.
IIE members visiting this site for the first time must register. As part of this process you will create a user name and password. This is a one-time process that requires your member number.
If you are not a member, join IIE now and begin enjoying benefits immediately, including full access to Industrial Engineer magazine.