There is nothing quite as satisfying in a distribution center as a well-balanced inventory. Orders arrive, orders are shipped, and your fulfillment and delivery flows consistently like the tides. Inventory does not become overstock to take up space and have a negative impact on cash flow. With excellent inventory control, being out of stock of any item is a rare occasion.
Sadly, the perfectly balanced inventory is somewhat of a Zen-like ideal: The moment you identify the inventory as ‘balanced’, it morphs. The best you can do to manage the factors that affect inventory to control overstock or short-stocked items on the warehouse floor.
With some careful planning and a few deft adjustments to inventory management processes, you eventually establish a balance that you can maintain.
How can this be accomplished?