A new focus on inventory performance and bottom-line profits.
This article is about a new way to measure inventory performance and about putting a dollar focus on inventory management priorities. It reviews the financial impact of inventories and shows how the information from any materiel requirements planning (MRP), MRP II, ERP, DRP, or orderpoint system can be used for setting individual objectives for inventory reduction, measuring performance by inventory segment, and monitoring continuous improvement. It will also consider the merits of paying performance bonuses to materiel planners and review some inventory reduction results.
Gossard
G
G
IQR International, Los Angeles, CA, USA.
D017046:Cost Savings; D004650:Employee Performance Appraisal; D004864:Equipment and Supplies / Q000191:economics* / Q000592:standards; D005376:Financial Management; D006801:Humans; D007182:Income; D007221:Industry / Q000191:economics* / Q000458:organization & administration; D008421:Materials Management, Hospital; D011357:Product Line Management; D012984:Software; D012985:Software Design; D017749:Total Quality Management / Q000191:economics*; D014481:United States