Whether a business is big or small, the concept of replacement parts is applied according to the principle of never being in short supply.  How many times have we heard this?  Do you know how much this could cost your business?  Abitibi-Bowater was undergoing its restructuration process when a great quantity of electric motors were found in its inventory.  Enough motors to supply all its factories for a twelve-year period.  ’Man’ is an emotional being that does not enjoy being caught short.

A storekeeper is not different from other people.  He wants to avoid outbursts from his boss, colleagues or friends resulting from a shortage of parts or backorders.  For him, the best way to ensure availability of parts (service wise) is to increase inventories without taking into account the demand, criticality or costs.  However, did you know that it is possible to increase the level of serviceable parts and at the same time decrease the entire inventory?

Today’s high performance data processing systems can achieve mathematical calculations that can be applied to inventory management.  Access to an expert in inventory management is now available at your fingertips and he also speaks your language.