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Managing excess and obsolete inventory remains a major challenge in most global supply chains.
The best way to manage excess and obsolete inventory is through preventive and avoidance improvement strategies.
this is not must approch , it depends on company business , in some business increasing inventory will lead to very high profit if business and inventory is related to material/products used in crises :)
It can help management to flow easily from crisis situation without increasing more market debts.
1. In crises funds must be kept in most liquid form, therefore maximum inventory should be liquidated to absorb the shocks or recession through stream flow of funds.
2. In case of closure of a business, inventories held pose a major hindrance in recovering the maximum value from the liquidated assets of the company
because it will effect on all employees, & reducing the positive work
Say if your gate and weight is controlled than no doubt u face the crisis. But during the crisis should be adopted
Strategy of Playing Safe-During Supply Chain crisis there are many factors that could affect our Overall profit in an Organization. This entire concept depend upon Demand and supply. If the Demand is very less and supply is very large, then it is very Important for the manager to maintain low levels of stock(in some cases re-order time is very large with low demand) at such times current profit is good when compared to new risky profits (It is a kind of strategy). It is very Important for managers to select specific kind of System("P" system or "Q" system), Personally I felt Q system is considered as playing safe.