When you are managing a complex electronics components business you need to hold inventory to offset the manufacturing lead time that it takes to supply products. For semiconductor products that manufacturing cycle time can be 12-15 weeks — so holding enough inventory to be able to supply customers is critical. The trick is to not hold too much inventory. To make it all more complex, you need to anticipate what customer demand will be long before you can have products ready to ship.
Do you know what the key metrics are for optimizing inventory management? Learn more: