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If a demand planner making a plan to maintain the MSL then every time ageing is big hurdle hence I would like to know what is the best way to reduce the ageing.
Re-examine service levels, and address capacity issues.
IS ALWAYS FOLLOW THE FIFO POLICY SHOULD BE DONE TO AVOID AGEING STOCKS AND MAKE SURE THAT THE INVENTORY IS ALWAYS CORRECT.
To avoid those aging stock always follow FIFO "first in first out".
Which are the best practices across the industry for better inventory management?
Identify and dispose of worthless inventory.
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it costs your business money to have inventory lying around. Money tied up in inventory sitting on your shelves represents funds that you don't have conveniently available for expenses such as rent and payroll. In general, the less time it takes for you to turn over your inventory, the fewer cash flow hassles you will encounter. Reducing the average age of inventory involves having and accurate sense of what your customers will likely buy, as well as the rhythm of their purchases, such as whether your store tends to be busier during a particular season.
Actually , there is many points working together to reduce aging stock , like improving the supply chain and reducing the supplier lead time , also improving forecast accuracy and utilizing inter-changeability between parts we have. Of course parts ordering accuracy is the most important point.
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