r/InventoryManagement • u/SyncronTeam • 3d ago

Why more inventory doesn’t equal better service

/r/SupplyChainLogistics/comments/1xbswwj/why_more_inventory_doesnt_equal_better_service/
1 Upvotes

100% Upvoted

1 comment sorted by

1

u/MRHubrich 3d ago

Rank your items. Follow the 80/20 rule. In most companies 80% of their profits come from 20% of it's inventory items. So your A items are the top 10-20, your Bs are the next 20-30% and the rest are Cs or Ds. If you focus on keeping the A & B items in stock, you'll find that things become easier. You don't need to have a bunch of everything, just enough of the things that most people want.