Asprova Chapter 8: Reducing Inventory

Chapter 8 Will you be able to stand the pressure of repeated demands for price cuts?

Reducing Inventory

When production lead times are shortened, the work-in-progress inventory levels between processes decrease naturally. Asprova can further reduce inventory levels of finished items and bulk-produced parts by performing pegging between sales orders and manufacturing orders. In the case that an inventory shortage appears in the schedule, Asprova can automatically replenish the inventory by generating manufacturing orders according to the lot sizing rules you specify, while continuing to minimize finished item and work-in-progress item inventory levels.

1. Auto-Replenishment Production
By setting a safety stock level for key items, you can have Asprova2003 automatically generate production orders to replenish inventory just-in-time to keep the inventory from falling below the safety stock level. Since you can schedule manufacturing orders of intermediate items, manufacturing orders of finished items, and sales orders from customers in any order, you can use this feature for any manufacturing pattern, including make-to-order, build-to-order, and make-to-stock. In this way, you can keep inventory to a minimum.

2. Sales Order Scheduling (Optional)
Using this feature, you can peg sales orders from customers to manufacturing orders generated based on a forecast. By monitoring how each manufacturing order is pegged, you can avoid overproduction while minimizing stockouts.

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