substituted , because they had both options , or many options , available .”
It ’ s a profoundly different approach to inventory management in chain-type supply .
“ In a chain ,” she says , “ the role of inventory is to close the gap between supply lead times and customer service lead times . If a company ’ s demand is in central London but it ’ s bringing goods in from Poland then the job of inventory is to close the gap between delivery and consumers ’ expectation that they ’ ll get their product immediately ”.
Rey-Marston stresses that in a DRN , companies must be disciplined about harnessing demand signals from the market . “ They must align in closer and better ways with their sales and marketing functions . Supply can no longer operate in isolation if it wants to respond to demand . They must connect with the elements of the network that are able to support demand response .”
Does just-in-time inventory fit the dynamic supply approach ? So where does all of this leave the two main approaches to inventory management - Just In Time ( JIT ) and Just In Case ( JIC )? How do these fit into the DRN model . Do they fit in at all ?
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