Free Trial

Safari Books Online is a digital library providing on-demand subscription access to thousands of learning resources.

  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 4. Types of Inventory > Decoupling Inventory

Decoupling Inventory

This is a term used sometimes instead of safety stock to establish a buffer between product demand and product supply. It is used in work-in-process inventories. As factory work orders pass from machine to machine, queues (stocks) of inventory are often planned to enable each work center (machine) to absorb variations in workload due to such things as product mix changes. These queues of work separate the operations so that each work center can produce somewhat independently from other work centers. The objective is to prevent idle time in the factory of expensive, direct-labor people. Decoupling stock is used most often in build-to-order job shops. Job shops will be discussed in Module II under the discussion of manufacturing environments.

Transportation (Pipeline) Inventory

This can be simply thought of as inventory that is being moved from one location to another. Typically it is from the factory to a stocking-point distribution center as close to the end customer as possible. Pipeline inventories also represent the finished goods of the supplier. The time the inventory spends in the “pipeline” has an impact on the lead times and inventory levels. The components of this transportation time include order entry, shipping, transportation and receiving time at the destination.


  

You are currently reading a PREVIEW of this book.

                                                                                                                    

Get instant access to over $1 million worth of books and videos.

  

Start a Free 10-Day Trial


  
  • Safari Books Online
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint