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Leon Has Been Watching Some of the Workers on His

question 217

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Leon has been watching some of the workers on his shift sort and put inventory in storage bins. It appears to him that much time and effort are being wasted. Leon decides to analyze the workers' overall task and then select and train workers for specific parts of the job so as to increase workers' productivity. Leon is applying the principles of ___.


Definitions:

Re-Order Point

A predetermined inventory level at which new stock should be ordered to replenish supplies before reaching a critically low or stock-out situation.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

ABC Analysis

A method of categorizing inventory into three classes, A, B, and C, based on their value, volume, or frequency, to prioritize management focus and resources.

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