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STAGE 0: INTRODUCTION AND ORIENTATION
STAGE 1: LOAD
STAGE 2: INVENTORY
STAGE 3: NAVIGATE
STAGE 4: KEEP
STAGE 5: EXTEND
STAGE 6: DEVELOP

4.2 Establish Policy for Days On Hand [LINKED]

4.2 – Set the policy for the Days On Hand [DOH] based on a desired inventory turnover rate and the ABC and commodity codes for each item. This is the answer to “What is the maximum inventory want to have at a location?”. “A” items are typically controlled tightly and “B” items less so. “C” items can represent less than 10% of the total inventory investment, and need to be managed with an easy and low-cost method like Kanban or Vendor Managed Inventory (VMI).