A practical guide to setting inventory norms by product family, and releasing working capital without hurting service levels.
Every rupee of slow-moving stock is a rupee you cannot spend on growth.
Classify before you cut
Split the range into fast, steady and slow movers, and set different norms for each.
Service level is the constraint
Agree the fill rate your customers need, then size safety stock to that, not to habit.
Review monthly
A thirty-minute monthly review between sales, purchase and finance keeps norms honest.
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