Second, they figured that with a shorter forecasting time, forecasts would be more accurate, reducing emergencies and waste.”(Chase, et Al., 2005, p.588). Vendor consignment – International Rectifier, based on the researcher’s experience, uses vendor management in most of its spareparts inventory. With this approach the cost of inventory drops to 20% and saves the company for warehousing cost and freight cost due to the proximity of the warehouse...
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With this approach the cost of inventory drops to 20% and saves the company for warehousing cost and freight cost due to the proximity of the warehouse. Most of all, the delivery was reduced significantly that the parts are available almost instantaneously. However, good forecasting based on historical data is required to minimize excess inventory at supplier’s end over a period of time...
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