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Calculate Target Inventory Quantities

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In this Roadmap we will focus on how to establish the correct material quantities for a given item, and how to calculate the target number of containers that will be needed to support the anticipated usage.

  • When too much inventory is planned for a specific location, (to minimize trips or touches, or to give Operators a sense of security) many problems are created:
  • A large container is likely to have many days of inventory, rather than hours. In general terms, large containers encourage excess inventory.
  • Large containers will take a lot more space at the line, causing all kinds of waste, like potentially making the line larger than it needs to be. Floor space does not come cheap.
  • By increasing the line’s footprint, you will require Operators to walk more to get parts. Your Material Delivery system design will dictate your plant’s productivity. When operators have their hands on the product, productivity goes up. When they do not, because they are walking to get parts, productivity goes the other way in a rush.
  • Smaller containers can be moved by means other than a fork truck. Containers like the one in the picture almost always require a fork truck to move them. In many cases that is waste.