There is a view that all buffers are waste, particularly from some Lean practitioners. “If you see inventory waiting anywhere in a supply chain then it should be reduced to zero”. However, businesses should be Lean not Anorexic and buffers can be used to increase the flow of product and profit.
How do I incorporate the needs of the production department into my Make or Buy decision?
You have been tasked with the job of identifying options for purchasing products from 3rd party manufacturers. You have completed the comparisons on the basis of total supply chain costs and as a consequence of this you have decided on a supplier. This article uses an example to demonstrate how involving the production department can … Read more