Jointly managed inventories

Inventory Decentralised Systemic approach Joint inventory Leader manages Joint inventory... 

Newer methods of vendor-managed inventories (VMI) and jointly managed inventories 0MI) are offsprings of this effort. But in all cases, the focus is placed on meeting customer demand by improving the processes and methods used to plan production and manage inventories between... 

Recognition of customer-driven substitution and joint management of inventories across substitutable products allows a supply chain to reduce the required safety inventory while ensuring a high level of product availability. 

SCDS3 Our firm and supply chain partners jointly manage inventory... 

In the remainder of this chapter, we first provide a more detailed discussion of JIT/TPS in Section 2, including its philosophy and implementation issues. In Section 3, we examine the kanban system, widely used in JIT for control of production and inventory, and present a case study of JIT/kanban implementation. Section 4 follows with an examination of JIT s relation to complementary approaches such as total quality management (TQM) and total productive maintenance (TPM), together with a case study of their joint implementation. In Section 5, we examine lean production as an extension of JIT, explore the relationship of JIT to theory of constraints (TOC), and conclude with a brief consideration of applications to service industries of JIT, TOC, and other manufacturing-based approaches. 

The implementation of CMMS and EAM will include an inventory system that totally supports the requirements of maintenance and the storeroom. Maintenance inventory wfll be managed to ensure that the right part is available at the right time without excessive inventory levels. Information from aU available sources will be used to determine optimum stock levels. A continuous review of stock levels will be made to eliminate excess inventory and obsolete parts. Inventory reductions will be achieved through more partnerships with suppliers and vendors that establish joint commitments to purchase based on responsive service and fast delivery. Positions within MRO material management and procurement wfll increase in their importance and level of technical knowledge to perform effectively... 

H. Kunreuther and Schrage. Joint pricing and inventory decisions for constant priced items. Management Science, 19(7) 732-738, 1973. 

Furthermore, one-time costs are incurred in this scenario through the need for intensive coordination efforts on the part of both supply chain players to jointly discuss and adapt the stock management policy. This involves analyses of historic consumption data, amongst others. In a further step, the involved employees in the planning departments would need to be familiarised with the new inventory management policy. All in all, one-off labour and administrative costs amoxmting to 0.02 % and 0.01 % = 0.0002, afj j = 0.0001) are likely to be incurred according... 

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