Article ID: | iaor1990846 |
Country: | United States |
Volume: | 28 |
Start Page Number: | 16 |
End Page Number: | 22 |
Publication Date: | Oct 1987 |
Journal: | Production and Inventory Management Journal |
Authors: | Ware Norman, Keown Brian |
A company experiencing unacceptably high inventory levels determined by analysis that lot size and safety stock levels had been set without the application of inventory theory suited to its operating environment (accurate cost data needed for such a theory were not immediately available). Using available data on current lot sizes, product demand rates, and production rates, inventory levels were significantly reduced by instituting common cycle scheduling and using statistical inventory theory to set safety stock levels.