High inventory levels with low working capital turnover.
Objective
Reducing the working capital of inventories with ensuring a high level of service (from raw materials to production and finished products to customers).
Methodology used
Overview of individual material inventory levels, inputs and outputs, and deviations. Define the optimal stock, reorder point, safety stock and optimal purchase lot for each materi.
Approach
Inventory analysis, order structure analysis, supplier risk matrix, selection of made-to-stock/made-to-order products, Pareto principle.
Delivery
Working capital reduction potential with achievable service level. Inventory/non-inventory product list, Inventory products with reorder point, safety stock and order quantity,
