Tip of the month
Tip of the Month - Stock on Hand
One job I worked at years ago, in my early days of engineering. Here I was in a small company manufacturing customised vehicles at the rate of about 2 a month before we had a downturn which reduced down to one a month. Our store manager was made redundant, and after he left we questioned his actions over some of the excessive stock which was in the store. One of the items in particular, the rear licence plate light bulb was found to contain a quantity of 222. At the rate before he left we had about 9 years supply of light bulbs. On the other hand have you every been to the supermarket and found the one item you want has sold out. An item in the store which you really wanted.
There obviously needs to be a balance between running out of stock and excessive stock. Running out of stock can seriously affect production and excessive stock chews up valuable capital expenses.
Please revisit this webpage next month for more great tips.