Just-In-Time (JIT) is a manufacturing and inventory management philosophy that aims to produce and deliver goods or services at the exact moment they are needed in the production process or by the customer. The goal of JIT is to minimize inventory levels, reduce carrying costs, and eliminate waste, while ensuring that production remains efficient and […]

ABC analysis, also known as Pareto analysis or the 80/20 rule, is a widely used inventory management technique that categorizes items based on their relative importance in terms of value or frequency of consumption. It helps organizations prioritize their inventory management efforts and allocate resources more efficiently. The analysis derives its name from the three […]

Inventory management refers to the process of efficiently and effectively overseeing the acquisition, storage, tracking, and utilization (ASTU) of an organization’s goods or products. It involves maintaining the right quantity of items at the right time (RQ@RT) to meet customer demands while avoiding overstocking or stockouts. The primary objectives of inventory management are to: Ensure […]

https://www.manutan.com/blog/en/glossary/what-is-the-kraljic-matrix

1. Identify the inefficient processes/bottleneck in your organizations procurement cycle and work to remove them 2. Rationalize your supply base. Some place you have to increase vendor; some places you have consolidate vendors to get best from your suppliers 3. Improve supplier relationship, establish fair practices with supplier 4. Standardize your procurement processes. Implement centralized […]

Safety stock describe a level of extra stock that is maintained to mitigate risk of stock-outs. It acts as a buffer stock in case sales are greater than planned and/or the supplier take more time to deliver ordered units than its average lead time. where, α is the service level, Zα =1.65 for 95% service level. E(L) […]