Inventory Management

This Ain’t Your Parents’ Inventory Cycle

Speculation has been mounting that the inventory cycle is back. Profit warnings by major American companies such as GAP, Walmart, and Target that had taken on excess inventories and now needed to run them down raised concerns that a concerted drawdown of stocks could make a likely U.S. recession worse.

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Don’t Blame Lean Manufacturing

Lean manufacturing has been blamed for the recent supply chain crisis, with critics claiming lean and just-in-time (JIT) manufacturing encouraged extremely low inventories of raw materials and components. When the pandemic arrived, and supplies were disrupted, manufacturers had to stop production due to material shortages. This had cascading effects all the way down the supply […]

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