![Lean Briefs Logo](images/logos/briefs1.gif) The
Newsletter of Lean Manufacturing & Factory Science
December
11,
2002
www.strategosinc.com
Inventory?
Why All The Fuss?
Inventory
reduction is a persistent theme in Lean Manufacturing; but,
why so much ado? Some of the answer is that inventory devours cash like
a black hole. Operating with less inventory frees cash for more
constructive use.
Inventory
is expensive to keep. In addition to the interest cost on money it
requires space, insurance, computers and stock-keepers. It is
susceptible to damage and obsolescence. The
total annual carrying cost often runs 20%-60% of the inventory value.
But
there is much more. The practices, techniques, policies and decisions
that reduce inventory also eliminate many other forms of waste. By
reducing inventory, your operation becomes more productive, more
profitable and more responsive to customers.
Our
latest ?White Paper? explores some of these issues and may offer new
perspectives. You can find it on our website at:
www.strategosinc.com/inventory.htm
All
The Best-
Quarterman
Lee
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