Wednesday, February 6, 2019

Metrics from The Goal: Inventory

The second important factory metric from the book The Goal is Inventory.

Inventory is defined as "all the money the system has invested in purchasing things which it intends to sell".

The book demonstrates that the best approach is to reduce inventory. Inventory is product sitting somewhere in the factory: it can go obsolete, become damaged, or simply tie up cash that could be better used somewhere else.

No comments:

Post a Comment