Chapter 6

Stocking and Distributing Your Products


check Managing your raw materials and finished products

check Storing and distributing what you’ve made

check Establishing your end-to-end transportation flow

The questions of what items you need, how much of those items you need to keep on hand as inventory, where to locate and warehouse your inventory, how to move your inventory along the production line, how to manage inventory so you can meet demands, and what to do if you run out of an item are the many aspects of inventory management that we’ll address in this chapter. Being able to manage the “whats” and “hows” effectively at any stage in your manufacturing process is both an art and a science, and requires the consideration of additional elements when manufacturing in a foreign country.

Building and Managing Your Inventory

Raw materials and work in progress (that is, partially fabricated components of your products) used during your manufacturing processes must be collected and stored before use. The amount to keep on hand must be adequate to avoid shortages, but not so much as to cause excessive cost and space. During manufacturing, decentralized storage must be maintained near ...

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