REPLY Age of material in a stock (SD6435)

[SDMAIL Ralf Lippold]

Posted by  Ralf Lippold <ralf_lippold at web.de>

Jay's posting shows that the underlying problem is always essential 
to a qualitative and quantitative model discussion.

Due to my personal background I can say that in machinery maintenance 
it is essential to take the materials from stock in FIFO (first in - 
first out), because some materials are getting sour after a while and 
can't be used in the machinery any longer. The maintenance and storing 
policy can be quite different to that and has a significant effect on 
financial aspects as well.

@John, you are right in making the point that inventory pile up is 
equivalent to WIP (work in process). That's by the way the connection 
where SD gets close to Lean thinking where one tries to minimize the 
WIP through elimation of MUDA (non-value-adding activity in a process).

Best regards from Leipzig

Ralf 
Posted by  Ralf Lippold <ralf_lippold at web.de>
posting date  Sat, 28 Apr 2007 16:20:35 +0200