Retail Inventory management & Control Retail Inventory management & ControlPresentation Transcript 1. Retail Inventory Management. 2.

Managing Facilitating Goods Customer Replenis ment Replenis ment Replenis ment !rder !rder !rder !rder Factory " olesaler #istri$utor Retailer Production #elay Customer % ipping #elay % ipping #elay Item "it dra&n " olesaler #istri$utor Retailer Inventory Inventory '. T in( ))) " at and " ere is t e PR!*+,M .. " at is Inventory /. 0 1s t e cost o2 logistics increases retailers and manu2acturers are loo(ing to inventory management as a &ay to control costs. 0 Inventory is a term used to descri$e unsold goods eld 2or sale or ra& materials a&aiting manu2acture. 0 T ese items may $e on t e s elves o2 a store3 in t e $ac(room or in a &are ouse miles a&ay 2rom t e point o2 sale. In t e case o2 manu2acturing3 t ey are typically (ept at t e 2actory. 0 1ny goods needed to (eep t ings running $eyond t e ne4t 2e& ours are considered inventory. 5. " at is Inventory Management 0 Inventory management simply means t e met ods you use to organi6e3 store and replace inventory3 to (eep an ade7uate supply o2 goods & ile minimi6ing costs. 0 ,ac location & ere goods are (ept &ill re7uire di22erent met ods o2 inventory management. 0 8eeping an inventory3 or stoc( o2 goods3 is a necessity in retail. 0 Customers o2ten pre2er to p ysically touc & at t ey are considering purc asing3 so you must ave items on and. In addition3 most customers pre2er to ave it no&3 rat er t an &ait 2or somet ing to $e ordered 2rom a distri$utor. 0 ,very minute t at is spent do&n $ecause t e supply o2 ra& materials &as interrupted costs t e company unplanned e4penses.1. 9mar :. " at is Inventory Control 0 Inventory control is t e tec ni7ue o2 maintaining t e si6e o2 t e inventory at some desired level (eeping in vie& t e $est economic interest o2 an organi6ation.1. 9mar ;. Types o2 Inventory1. 9mar <. Type o2 Inventory Reason 2or olding t e Inventory =1> Ra& materials To reap t e price advantage availa$le on seasonal ra& materials. =2> "or( in progress To $alance t e production 2lo&. ='> Ready made components " en t e components are $oug t rat er t an made. =.> %craps T ey are disposal o2 in $ul(.1. 9mar =/> Finis ed Goods +ying in stoc( rooms and &aiting dispatc es 1?. Purpose o2 inventory management @ %toc(ing t e RIGAT PR!#9CT @ 1$le to +!C1T, t e products @ Maintain !PTIM9M +,B,+ o2 inventory1. 9mar

11. Reasons to Aold Inventory 0 Meet variations in customer demandC @ Meet une4pected demand @ %moot seasonal or cyclical demand 0 Pricing relatedC @ Temporary price discounts @ Aedge against price increases @ Ta(e advantage o2 7uantity discounts 0 Process & supply surprises @ Internal D upsets in parts o2 or our o&n processes @ ,4ternal D delays in incoming goods1. 9mar 12. !$Eective o2 Inventory Management 0 To maintain a optimum si6e o2 inventory 2or e22icient and smoot production and sales operations 0 To maintain a minimum investment in inventories to ma4imi6e t e pro2ita$ility 0 T e / RFsC ,22ort s ould $e made to place an order at t e rig t time &it rig t source to ac7uire t e rig t 7uantity at t e rig t price and rig t 7uality1. 9mar 1'. 1n ,22ective Inventory Management % ould G 0 ,nsure a continuous supply o2 ra& materials to 2acilitate uninterrupted production 0 Maintain su22icient stoc(s o2 ra& materials in periods o2 s ort supply and anticipate price c anges 0 Maintain su22icient 2inis ed goods inventory 2or smoot sales operation3 and e22icient customer service 0 Minimi6e t e carrying cost and time 0 Control investment in inventories and (eep it at an optimum level1. 9mar 1.. 1n !ptimum Inventory +evel Involves T ree Types o2 Costs !rdering costsCH Carrying costsCH 0 Iuotation or tendering 0 "are ousing or storage 0 Re7uisitioning 0 Aandling 0 !rder placing 0 Clerical and sta22 0 Transportation 0 Insurance 0 Receiving3 inspecting and storing 0 Interest 0 Iuality control 0 #eterioration3 s rin(age3 0 Clerical and sta22 evaporation and o$solescence %toc(Hout cost 0 Ta4es 0 +oss o2 sale 0 Cost o2 capital 0 Failure to meet delivery commitments1. 9mar 1/. #angers o2 !verHinvestment 0 9nnecessary tieHup o2 2irms 2und and loss o2 pro2it D involves opportunity cost 0 ,4cessive carrying cost 0 Ris( o2 li7uidityH di22icult to convert into cas 0 P ysical deterioration o2 inventories & ile in storage due to mis andling and improper storage 2acilities1. 9mar 15. #angers o2 9nderHinvestment 0 Production oldHups D loss o2 la$or ours 0 Failure to meet delivery commitments 0 Customers may s i2t to competitors & ic &ill amount to a permanent loss to t e 2irm 0 May a22ect t e good&ill and image o2 t e 2irm1. 9mar 1:. Ma4imum %toc( +evel Iuantity o2 inventory a$ove & ic s ould not $e allo&ed to $e (ept. T is 7uantity is 2i4ed (eeping in vie& t e disadvantages o2 overstoc(ing; Factors to $e consideredC 0 1mount o2 capital availa$le. 0 Godo&n space availa$le. 0 Possi$ility o2 loss. 0 Cost o2 maintaining stores; 0 +i(ely 2luctuation in prices; 0 %easonal nature o2 supply o2 material; 0 Restriction imposed $y Govt.;1. 9mar 0 Possi$ility o2 c ange in 2as ion and a$it. 1;. Minimum %toc( +evel 0 T is represents t e 7uantity $elo& & ic stoc(s s ould not $e allo&ed to 2all . 0 T e level is 2i4ed 2or all items o2 stores and t e 2ollo&ing 2actors are ta(en into accountC 1.+ead timeH 2. Rate o2 consumption o2 t e material during t e lead time.1. 9mar

1<. ReHordering +evel 0 It is t e point at & ic i2 stoc( o2 t e material in store approac es3 t e store (eeper s ould initiate t e purc ase re7uisition 2or 2res supply o2 material. 0 T is level is 2i4ed some & ere $et&een ma4imum and minimum level.1. 9mar 2?. Managing %mall Items 0 Inventory control is simply (no&ing o& muc inventory you ave. It is a means to control loss o2 goods. 0 *usinesses t at use large 7uantities o2 small items o2ten use an J;?K2?L or 1*C rule in & ic t ey (eep trac( o2 2? percent o2 t e largest value inventory items and use it to represent t e & ole. J1L items are t e top valued 2? percent o2 t e companys inventory3 $ot in terms o2 t e cost o2 t e item and t e need 2or t e item in t e manu2acturing or sales process. 0 Controlling t is top 2? percent &ill control ;? percent o2 t eir inventory costs. J*L items are t ose o2 midHrange value and JCL items are c eap and rarely in demand. 0 T e retailer or manu2acturer can no& categori6e all items in t e inventory into one o2 t ese t ree classes and t en monitor t e stoc( according to value. M1M items &ould $e counted and trac(ed1. 9mar regularly3 & ile M*M and MCM items &ould $e counted only mont ly or 7uarterly. 21. Counting Current %toc( 0 1ll $usinesses must (no& & at t ey ave on and and evaluate stoc( levels &it respect to current and 2orecasted demands. 0 Nou must (no& & at you ave in stoc( to ensure you can meet t e demands o2 customers and production and to $e sure you are ordering enoug stoc( in t e 2uture. 0 Counting is also important $ecause it is t e only &ay you &ill (no& i2 t ere is a pro$lem &it t e2t occurring at some point in t e supply c ain. 0 " en you $ecome a&are o2 suc pro$lems you can ta(e steps to eliminate t em.1. 9mar 22. Cyclical Counting 0 Many companies pre2er to count inventory on a cyclical $asis to avoid t e need 2or s utting do&n operations & ile stoc( is counted. 0 T is means t at a particular section o2 t e &are ouse or plant is counted at particular times3 rat er t an counting all inventory at once. 0 In t is &ay3 t e company ta(es a p ysical count o2 inventory3 $ut never counts t e entire inventory at once. 0 " ile t is met od may $e less accurate t an counting t e & ole3 it is muc more cost e22ective.1. 9mar 2'. Controlling %upply and #emand 0 " enever possi$le3 o$tain a commitment 2rom a customer 2or a purc ase. 0 In t is &ay3 you ensure t at t e items you order &ill not ta(e space in your inventory 2or long. " en t is is not possi$le3 you may $e a$le to s are responsi$ility 2or t e cost o2 carrying goods &it t e salesperson3 to ensure t at an order placed actually results in a sale. 0 Nou can also (eep a list o2 goods t at can easily $e sold to anot er party3 s ould a customer cancel. %uc goods can $e ordered &it out prior approval. 0 1pproval procedures s ould $e arranged around several 2actors. Nou s ould set minimum and ma4imum 7uantities & ic your $uyers can order &it out prior approval. 0 T is ensures t at you are ma4imi6ing any volume discounts availa$le t roug your vendors and preventing overHordering o21. 9mar stoc(. It is also important to re7uire preHapproval on goods &it a ig carrying cost. 2.. 8eeping 1ccurate Records 0 1ny time items arrive at or leave a &are ouse3 accurate paper&or( s ould $e (ept3 itemi6ing t e goods. 0 " en inventory arrives3 t is is & en you &ill 2ind $rea(age or loss on t e goods you ordered. 0 Inventory leaving your &are ouse

must $e counted to prevent loss $et&een t e &are ouse and t e point o2 sale. 0 ,ven samples s ould $e recorded3 ma(ing t e salesperson responsi$le 2or t e goods until t ey are returned to t e storage 2acility. 0 Records s ould $e processed 7uic(ly3 at least in t e same day t at t e &it dra&al o2 stoc( occurred.1. 9mar 2/. Managing ,mployees 0 *uyers are t e employees & o ma(e stoc( purc ases 2or your company. Re&ard systems s ould $e set in place t at encourage ig levels o2 customer service and return on investment 2or t e product lines t e $uyer manages. 0 "are ouse employees s ould $e educated on t e costs o2 improper inventory management. *e sure t ey understand t at t e lo&er your pro2it margin3 t e more sales must $e generated to ma(e up 2or t e lost goods. Incentive programs can elp employees (eep t is in perspective. " en t ey see a di22erence in t eir payc ec(s 2rom poor inventory management3 t ey are more li(ely to ta(e precautions to prevent s rin(age. 0 ,ac stoc( item in your &are ouse or $ac( room s ould ave its o&n procedures 2or replenis ing t e supply. Find t e $est suppliers and storage location 2or eac and record t is in2ormation in o22icial1. 9mar procedures t at can easily $e accessed $y your employees. 25. ContdG 0 Inventory management s ould $e a part o2 your overall strategic $usiness plan. 0 1s t e $usiness climate evolves to&ards a green economy3 $usinesses are loo(ing 2or &ays to leverage t is trend as part o2 t e J$ig pictureL. 0 T is can mean reevaluating your supply c ain and c oosing products t at are environmentally sound. 0 It can also mean putting in place recycling procedures 2or pac(aging or ot er materials. 0 In t is &ay3 inventory management is more t an a means to control costs; it $ecomes a &ay to promote your $usiness.1. 9mar 2:. "ater Tan( 1nalogy 2or Inventory Inventory +evel %upply Rate *u22ers #emand Inventory +evel Rate 2rom %upply Rate1. 9mar #emand Rate 2;. *ull& ip e22ect #emand in2ormation is distorted as it moves a&ay 2rom t e endHuse customer. Aig er sa2ety stoc( inventories to are stored to compensate1. 9mar 2<. T&o Forms o2 #emand 0 #ependent @ #emand 2or items used to produce 2inal products @ Tires stored at a Goodyear plant are an e4ample o2 a dependent demand item 0 Independent @ #emand 2or items used $y e4ternal customers @ Cars3 appliances3 computers3 and ouses are e4amples o2 independent demand inventory1. 9mar '?. Independent and #ependent #emand Inventory Management 0 #ependent demand D JRe7uirementsL K planned D Materials Re7uirements Planning K Oust in Time 0 Independent demand D 9ncertain K 2orecasted D Continuous Revie& K Periodic Revie&1. 9mar '1. Reasons To Aold Inventory 0 Meet variations in customer demandC @ Meet une4pected demand @ %moot seasonal or cyclical demand 0 Pricing relatedC @ Temporary price discounts @ Aedge against price increases @ Ta(e advantage o2 7uantity discounts 0 Process & supply surprises @ Internal D upsets in parts o2 or our o&n processes @ ,4ternal D delays in incoming goods1. 9mar 0 Transit

'2. Reasons P!T To Aold Inventory 0 Carrying cost @ Financially calcula$le 0 Ta(es up valua$le 2actory space @ ,specially 2or inHprocess inventory 0 Inventory covers up Jpro$lemsL G @ T at are $est e4posed and solved #river 2or increasing inventory turns =2inis ed goods> and lean productionKOust in time 2or &or( in process1. 9mar ''. Inventory Aides Pro$lems *ad #esign +engt y Poor %etups Iuality Mac ine Ine22icient 9nrelia$le *rea(do&n +ayout %upplier1. 9mar '.. To ,4pose Pro$lemsC Reduce Inventory +evels *ad #esign +engt y Poor %etups Iuality Mac ine Ine22icient 9nrelia$le *rea(do&n +ayout %upplier1. 9mar '/. Remove %ources o2 Pro$lems and Repeat t e Process Poor Iuality +engt y %etups *ad Mac ine #esign Ine22icient 9nrelia$le *rea(do&n +ayout %upplier1. 9mar '5. Inventory Cost %tructures 0 !rdering =or setup> cost 0 Carrying =or olding> costC @ Cost o2 capital @ Cost o2 storage @ Cost o2 o$solescence3 deterioration3 and loss 0 %toc( out cost 0 Item costs3 s ipping costs and ot er cost su$Eect to volume discounts1. 9mar ':. Typical Inventory Carrying Costs Costs as Q o2 Inventory Balue Aousing costC @ *uilding rent or depreciation 5Q @ *uilding operating cost ='Q H 1?Q> @ Ta4es on $uilding @ Insurance Material andling costsC @ ,7uipment3 lease3 or depreciation 'Q @ Po&er =1Q H .Q> @ ,7uipment operating cost 'Q Manpo&er cost 2rom e4tra andling and supervision ='Q H /Q> Investment costsC @ *orro&ing costs 1?Q @ Ta4es on inventory =5Q H 2.Q> @ Insurance on inventory Pil2erage3 scrap3 and o$solescence /Q =2Q H 1?Q>1. 9mar !verall carrying cost =1/Q H /?Q> ';. Inventory Management %ystems 0 Functions o2 Inventory Management D Trac( inventory D Ao& muc to order D " en to order 0 Prioriti6ation 0 Inventory Management 1pproac D ,!I D Continuous K Periodic1. 9mar '<. 1*C Prioriti6ation 0 *ased on JParetoL concept =;?K2? rule> and total usage in dollars o2 eac item. 0 Classi2ication o2 items as 13 *3 or C o2ten $ased on R volume. 0 PurposeC set priorities 2or management attention.1. 9mar .?. 1*C Prioriti6ation 0 S1 itemsC 2?Q o2 %89s3 ;?Q o2 Balue 0 S* itemsC '? Q o2 %89s3 1/Q o2 Balue 0 SC itemsC /? Q o2 %89s3 /Q o2 Balue 0 T ree classes is ar$itrary; could $e any num$er. 0 Percents are appro4imate. 0 #angerC Money use may not re2lect importance o2 any given %89)1. 9mar .1. 1nnual 9sage o2 Items $y #ollar Balue Percentage o2 1nnual 9sage in Total #ollar Item 9nits 9nit Cost #ollar 9sage 9sage 1 /3??? R 1./? R :3/?? 2.<Q 2 13/?? ;.?? 123??? ..:Q ' 1?3??? 1?./? 1?/3??? .1.2Q . 53??? 2.?? 123??? ..:Q / :3/?? ?./? '3:/? 1./Q 5 53??? 1'.5? ;135?? '2.?Q : /3??? ?.:/ '3:/? 1./Q ; .3/?? 1.2/ /352/ 2.2Q < :3??? 2./? 1:3/?? 5.<Q 1? '3??? 2.?? 53??? 2..Q Total R 2/.3:2/ 1??.?Q1. 9mar .2. 1*C C art For Previous %lide ./.?Q 12?.?Q .?.?Q 1??.?Q Cumulative Q 9sage '/.?Q 1 * C Percent 9sage '?.?Q ;?.?Q 2/.?Q 5?.?Q 2?.?Q 1/.?Q .?.?Q 1?.?Q 2?.?Q

/.?Q ?.?Q ?.?Q ' 5 < 2 . 1 1? ; / : Item Po. Percentage o2 Total #ollar 9sage Cumulative Percentage1. 9mar .'. 1*C Classi2ication 0 Class 1 @ 2? Q o2 Inventory @ ;? Q o2 value 0 Class * @ '? Q o2 Inventory @ 1/ Q o2 value 0 Class C @ /? Q o2 Inventory @ / Q o2 value1. 9mar ... 1*C 1nalysis ,4ample 1?? T UClass C UClass * <? T Percentage o2 dollar value Class 1 ;? T :? T 5? T /? T .? T '? T 2? T 1? T ?T 1? 2? '? .? /? 5? :? ;? <? 1??1. 9mar Percentage o2 items ./. Inventory Management 1pproac es 0 1Hitems D Trac( care2ully =e.g. continuous revie&> D %op isticated 2orecasting to assure correct levels 0 CHitems D Trac( less 2re7uently =e.g. periodic revie&> D 1ccept ris(s o2 too muc or too little =depending on t e item>1. 9mar .5. Item Iuality Iuantity order C ec(ing 1 Costlier +ess Regular system to see t at t ere is no overstoc(ing as &ell as t at t ere is no danger o2 production $eing interrupted 2or un&anted material. * +ess costlier !rder may $e on Position $eing vie&ed revie& $asis. in eac mont C ,conomical +arger !rder in large 7uantity so t at cost can $e avoided1. 9mar .:. ,conomic !rder Iuantity =,!I> Model 0 #emand rate # is constant3 recurring3 and (no&n 0 1mount in inventory is (no&n at all times 0 !rdering =setup> cost % per order is 2i4ed 0 +ead time + is constant and (no&n. 0 9nit cost C is constant =no 7uantity discounts> 0 1nnual carrying cost is i time t e average R value o2 t e inventory 0 Po stoc(out allo&ed. 0 Material is ordered or produced in a lot or $atc and t e lot is received all at once1. 9mar .;. ,!I +ot %i6e C oice 0 T ere is a tradeHo22 $et&een lot si6e and inventory level. @ Fre7uent orders =small lot si6e>C ig er ordering cost and lo&er olding cost. @ Fe&er orders =large lot si6e>C lo&er ordering cost and ig er olding cost.1. 9mar .<. ,!I Inventory !rder Cycle #emand rate !rder 7ty3 I Inventory +evel ave V IK2 Reorder point3 R ? +ead +ead Time time time !rder !rder !rder !rder Placed Received Placed Received1. 9mar 1s I increases3 average inventory level increases3 $ut num$er o2 orders placed decreases /?. Total Cost o2 Inventory D ,!I Model1. 9mar /1. 1ns&er to Inventory Management Iuestions 2or ,!I Model 8eeping trac( o2 inventory @ Implied t at &e trac( continuously Ao& muc to order- @ %olve 2or & en t e derivative o2 total cost &it respect to I V ?C H%#KIW2 U iCK2 V ? @ I V s7rt = 2%#KiC> " en to order- @ !rder & en inventory 2alls to t e JReorder PointHlevelL R so &e &ill Eust sell t e last item as t e ne& order comes inC @ R V #+1. 9mar /2. ReHorder Point ,4ample #emand V 1?3??? ydsK year +ead time V + V 1? days " en inventory 2alls to R3 &e order so as not to run out $e2ore t e ne& order comes in. RV-1. 9mar

/'. ReHorder Point ,4ample #emand V 1?3??? ydsKyear #aily demand V 1?3??? K '5/ V 2:.. ydsKday +ead time V + V 1? days R V #X+ V =2:..>=1?> V 2:. yds =usually can neglect issues o2 &or(ing days vs &ee(ends3 etc.> #onFt 2orget to convert to consistent time units)1. 9mar /.. ,!I %ummary Ao& muc to order- @ I V s7rt=2#%KiC> " en to order- @ R V #+1. 9mar //. Inventory Control %ystems 0 Continuous system =2i4edHorderH 7uantity> @ constant amount ordered & en inventory declines to predetermined level 0 Periodic system =2i4edH timeHperiod> @ order placed 2or varia$le amount a2ter 2i4ed passage o2 time1. 9mar /5. Iuantity #iscounts Model 0 Price per unit decreases as order 7uantity increases Co # CcI TC V U U P# I 2 & ere P V per unit price o2 t e item # V annual demand1. 9mar /:. Iuantity #iscounts Model !R#,R %IY, PRIC, ? H << R1? TC V =R1? > 1?? D 1<< ; =d1> 2??U 5 =d2> TC =d1 V R; > TC =d2 V R5 > Inventory cost =R> Carrying cost !rdering cost I=d1 > V 1?? Iopt I=d2 > V 2??1. 9mar /;. Iuantity #iscounts Model I91PTITN PRIC, Co V R23/?? 1 H .< R13.?? Cc V R1<? per computer /? H ;< 131?? # V 2?? <?U <?? 2Co# 2=2/??>=2??> Iopt V V V :2./ PCs Cc 1<? For I V :2./ Co# CcIopt TC V U 2 U P# V R2''3:;. Iopt For I V <? CcI Co#1. 9mar TC V U 2 U P# V R1<.31?/ I /<. ,!I ,4ercise 0 Po& you do it 0 %ee ,4cel %preads eetC ,4celZInvZ,4amples.4ls3 ,!I ta$ 0 Compute t e values o2 R and I and compare to t e simulation 0 Pe4t see & at appens & en you ave volume discounts =,!I & #iscount Ta$>1. 9mar 5?. %a2ety %toc(s 0 %a2ety stoc( @ $u22er added to on and inventory during lead time 0 %toc(out @ an inventory s ortage 0 %ervice level @ pro$a$ility t at t e inventory availa$le during lead time &ill meet demand1. 9mar 51. Perpetual Inventory %ystem It is a met od o2 recording stores $alances a2ter every receipt and issue3 to 2acilitate regular c ec(ing and o$viate closing do&n 2or stoc( ta(ing. H" eldon1. 9mar 52. Factors & ic are elp2ul to ma(e system success2ul 0 %tores ledger3 stores control3 cards or $in cards are properly maintained ; 0 Iuantity $alance store s o&n in t e store ledger; stoc( control and $in cards are reconciled; 0 ,4ploring t e cause o2 discrepancies i2 any p ysical $alances and $oo( $alances.1. 9mar 5'. #aily Inventory *alance Record Product Mont Near 1 2 ' . / 5 : #ay !pening P ysical #eliveries Meter %ales Inventory % ould *e P ysical Inventory Bariation Today Bariation T is Inventory Mont 1 2 ' . / 5 : ; < 1? 11 12 1' 1. 1/ 15 1: 1; 1< 2? 21 22 2' 2. 2/ 25 2: 2; 2<1. 9mar '? '1 T!T1+% 5.. #aily Readings Product Mont Near Pump 1 Pump 2 Pump ' Pump . Total Tan( 1 Tan( 2 Total Meter #ip Inventroy "ater #ip #ip Inventroy "ater #ip P ysical #ay Readings %ales Readings %ales Readings %ales Readings %ales %ales cm. litres cm. cm. litres cm.

Inventory 1 2 ' . / 5 : ; < 1? 11 12 1' 1. 1/ 15 1: 1; 1< 2? 21 22 2' 2. 2/ 25 2: 2; 2< '?1. 9mar '1 5/. Mont ly %ummary Product Product Product %torage Capacity %torage Capacity %torage Capacity Total Bariation Total Bariation Total Bariation Q +oss Q +oss Q +oss Mont %ales 2or Mont %ales 2or Mont %ales 2or Mont 1. 9mar 55. Inventory Turnover Met od It means o& many times a companys inventory is sold and replaced =2inis ed product> 0 Generally calculated asC %alesK Inventory 0 Ao&ever it may also $e calculated asC Cost o2 goods soldK 1verage Inventory1. 9mar 5:. Reduce your inventory P!"))) 0 T ings you can do to 2ree up some cas rig t no&C 0 1dEust sa2ety stoc( 0 Reduce sa2ety lead time 0 Cut P! 7uantities in al2 and dou$le t e num$er o2 receipts 0 Implement supplier (an$an =its not t at ard> 0 Re$alance your 13 *3 C items and cut $ac( on t e Cs 0 Put Purc asing on a strict diet D limit mont ly spend to 1K1? o2 t e annual plan 0 Revise t e annual plan to re2lect current reality 0 %uppliers are ungry3 so loc( in s orter lead times 0 +i7uidate your slo& moving stoc(C ave a %ale 0 Reduce production lot si6es1. 9mar 5;. T an( NouG1. 9mar