Strategic use of WIP inventory: The impact of bill-of-material shape and plant type

Strategic use of WIP inventory: The impact of bill-of-material shape and plant type

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Article ID: iaor1991408
Country: United States
Volume: 30
Start Page Number: 63
End Page Number: 67
Publication Date: Feb 1989
Journal: Production and Inventory Management Journal
Authors: ,
Abstract:

Pressure to reduce work-in-process inventories is universal, and justifiably so. However, its negative impact has recently been recognised. WIP inventory has some redeeming qualities, and indiscriminately eliminating it will not necessarily result in improvement to an operation. The difference between productive and counterproductive use of WIP inventories is discussed, and a means of evaluating current uses of WIP is given.

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