Zero Inventory

(redirected from Zero Inventories)

Zero Inventory

A system in which a company keeps no or very little inventory in storage, simply ordering exactly what it needs to sell and receiving it in a timely manner. Zero inventory is the goal of just-in-time inventory management and the two terms are sometimes used to mean the same thing.
References in periodicals archive ?
The goals include zero waste, zero accidents, zero breakdowns, zero waste of motion, and zero inventories.
Waste is broadly defined, and it includes the goal of zero accidents, zero breakdowns and zero inventories.
The Internet may actually allow us to address the concept of zero inventories, not lust within the four walls of a manufacturing facility, but in an entire industry or economy.
It includes: strive for a level of zero inventories, produce items at a rate required by the customer, eliminate all unnecessary lead times, reduce setup costs to achieve the smallest economical lot size, optimize material flow from suppliers through the production process to the point of sale of the finished product, so that inventories are minimized, ensure high quality just-in-time delivery from suppliers, minimize safety stocks, implement a total quality control program which will minimize scrap, rework, and resultant delays in production.
Many would argue that these goals are often unattainable, that zero inventories are to be strived for and that JIT is merely a philosophy.