Part 2 with Excel simulation on how to reduce inventory with safety lead-times If you haven’t read ‘Part 1: how to reduce inventory with safety lead-times’ it is a short analogy on how electronic board production is like organizing a meeting between Elon Musk and 9 young new interns. Please read if you have any […]
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How-to: reduce inventory with safety lead-times (part 2)
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One year safety stock is as useless as a chocolate teapot
So, let’s talk safety stock! Let’s say allocations and component lead-times are constantly increasing, and a business unit/customer is asking you to implement a full year of safety stock. They cannot afford the production to be late anymore. And they are ready to finance it. That’s right, they agree to pay for it! But here […]
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How to reduce inventory with safety lead-times (part 1)
Part 1: how to reduce inventory with safety lead-times (Part 2 here) I discovered the electronic component supply-chain in 2008. Back then, I was in charge of a French set-top-box OEM manufacturing & supply-chain. What struck me was how complex the electronic supply-chain was compared to my previous experience in the automotive industry. The explosive […]
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