Inventory cycle time is one of the most important components in production and manufacturing scheduling as well as inventory control, There are several approaches that you can take to reduce Inventory Cycle Times and thus improve production activities and increase their efficiency, and in this article will show you what an inventory cycle time is, why it is important, and how to improve it.

What Is Inventory Cycle Time?

Inventory cycle time is defined as the total time your company needs to be able to bring the digital products or services it offers to market.

and includes all the time taken from the manufacturing activities of the product or service to its end.

Optimizing Inventory Cycle Time

inventory cycle time

A company strives to maintain its reputation and provide the best experience for its customers,

And the fact that customers are on waiting lists or lack quick sales due to defects in the production process or inaccurate orders can cause serious damage and costs to the company.

They also lead to rapid customer losses, and there are many digital tools that can help companies improve inventory cycle time by:

  • Data management based on cloud systems and automation.
  • Data transparency which enables companies to identify and correct errors and other shortcomings.
  • Monitor workflow using artificial intelligence.
  • P2P inventory control which improves inventory cycle time.
  • Analyze central data to gain insights into opportunities that improve.
  • Real-time tracking and data analysis helps reduce stock outs and maintain high levels of efficiency.
  • Preparing financial reports and financial planning periodically.

Why is cycle Time inventory important?

is of great importance as the less time it has, the more efficient your organization will run.

And is important in its effective role in reducing costs and reducing lead time in delivering goods.

This increases profitability and ROI and thus enhances customer satisfaction, and can also help you simplify manufacturing processes and thus reduce costs.

Inventory cycle time also contributes to meeting production schedules and providing materials for the process, thus enhancing task performance without any delays.

How to Calculate and Reduce Inventory by Reduced Cycle Time

inventory cycle time

As for the calculation method, it is simple and can be easily calculated using a mathematical formula.

The following is the mathematical formula for calculating the inventory cycle time:

  • Inventory cycle time = Production time + Waiting time ÷ through put.

Inventory can be reduced through Reduced Cycle Time, as it is possible to simplify the manufacturing processes as well as reduce the time spent in production activities as well.

The following are a number of methods that will help you in reducing inventory cycle times, which will positively affect inventory management:

Reducing waiting time

Which is the easiest way to assist in reducing inventory cycle times of production operations, and this can be achieved by ensuring that production schedules are met.

Running tasks in parallel

If there are multiple tasks in production, a breakdown of the work structure can help you identify the tasks that need to be run in parallel, thereby reducing inventory cycle Count.

Process re-engineering

Which is one of the best ways in which an activity can be performed by eliminating or modifying tasks dimension, thereby improving cycle time

Improve scheduling

by identifying the potential problem in production activities, and thus improving operations by revising the task schedule, which will help you in improving the time management of employees and production processes.

Employee contribution

Which can contribute to improving cycle times. When employees are involved in the core process, they generate ideas for improvements that contribute to reducing cycle times.