In order to control inventory in a typical aggregate operation, the producer must understand the whole process, from production through sales. Inadequate control in any one of these areas leads to inventory uncertainty and makes it more difficult to make decisions based on a strong understanding of the operation.
If you can measure it, you can manage it.
Measurements have become increasingly easier and more cost effective. In this article, we discuss the basics of aggregate inventory management and suggest best practices based on our 25+ years of industry experience.
There are a number of factors that contribute to effectively managing your inventory. It boils down to if you can measure it, you can manage it. The more frequently you measure your inventory, the more likely you are to see and understand where variances are coming from. Then, you can work to make adjustments to your operational processes so that you have lower variances. The more information you have, the easier it will be to run your operation.
Technology, like drones, has made it much easier and more cost effective to do these frequent measurements.
To continue reading about the aggregate inventory management process, click here for the full article!