tag:blogger.com,1999:blog-7108456.post-37242324979947765952008-04-01T08:04:00.000-05:002008-04-01T08:04:00.000-05:002008-04-01T08:04:00.000-05:00You are right, Ian. Even in a factory setting, learned from a sensei "first job -- keep the line running. second job -- keep inventory low."<BR/><BR/>Too many companies have made low inventory the overriding priority and sometimes suffer higher costs from downtime and other problems caused by high inventory. Now, that's not an excuse to ignore or excuse high inventory levels.<BR/><BR/>For hospitals, the costs of stocking out cannot be calculated at times. If you're stocked out on a missing med and someone dies... well, you don't want that to happen of course.<BR/><BR/>So, some "excess and expired" meds may be a necessary cost of providing high service levels, but we use Lean methods (frequent deliveries and kanban control) to prevent excessive overordering.Mark Grabanhttp://www.blogger.com/profile/07953086531083611251noreply@blogger.com