How to Reduce Inventory in 10 steps

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See now our easy, unique, tested and successful method to reduce inventory in your company.

Let us imagine you have to reduce the inventory of tapes you need during your process.

Here the steps to follow:

Step 1)
How many tapes (on average) you need every week?

Step 2)
Set the space to contain maximum 2 weeks of tapes.

Step 3)
Create a Visual Management tool to understand the 2 weeks level (green) and 1 week level (red).

Step 4)
Determine who is the responsible and the accountable for replenish tapes on weekly bases.

Step 5)
Start by replenish the space with 2 weeks inventory and then every week refill the space and monitor the quantity ordered and its gap from the average.

Step 6)
Now you have a fixed inventory in the shop and a statistical data set to work on.

Step 7)
If the accountable is regular in his work, now the supplier could give tapes on weekly bases.

Step 8)
Set a minimum (i.e. 2 weeks) and maximum level (i.e. 4 weeks) in the warehouse.

Step 9)
Now you have fixed maximum inventory in the company for tapes.

Step 10)
Start again from point 1 halving the stock space and doubling the frequency of the replenishment.

Following these steps you will reduce your inventory in a consistent way for your company.

LeanLab Staff.



my name is Mark Anderson a 20+ year Lean Expert.
I have created LeanVlog because I want to spread Lean Thinking worldwide and I think the video is the most effective way to teach, learn, and spread knowledge.

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