While excess inventory can ultimately impact a manufacturer's bottom line, they often resort to high-overhead marketing promotions, rebates, or complete inventory write-offs to deal with it. Inventory in manufacturing is a dependent variable based on the inputs of many factors including: demand and demand variability, supply lead time and lead time variability, supply chain design, manufacturing capabilities versus customer purchase characteristics, transportation modes, and desired service levels. With such a confluence of variables, excess inventory is bound to happen from time to time where a supply chain or market correction is not evident on the horizon. The reality is that...The post The Challenges of Excess Inventory in Manufacturing appeared first on IDEAL TRADING.
