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Engineering

Lean Inventory Management in High-Mix Low-Volume Manufacturing

Quick fact

In high-mix low-volume (HMLV) manufacturing, traditional just-in-time rules often fail because they rely on stable, repetitive demand—but by using a 'dynamic safety stock' that recalculates based on recent demand forecast errors, some HMLV factories have cut inventory by 30% without worsening stockouts.

Why this is interesting

Imagine a factory that produces 10,000 different products, but each one only sells a dozen per year. How can you keep inventory low without running out of something a customer needs?