The use of standardized components typically leads to fewer inventory items and inventory levels due to the following reasons:
* Simplification of Inventory Management: Standardized components reduce the variety of parts needed, simplifying inventory management.
* Economies of Scale: Purchasing standardized components in larger quantities can reduce costs and streamline procurement processes.
* Reduced Stock Keeping Units (SKUs): Fewer unique components mean fewer SKUs to manage, which simplifies tracking and storage.
* Inventory Reduction: With standardized parts, companies can maintain lower safety stock levels due to more predictable usage patterns.
References:
* Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management.
McGraw-Hill.
* Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.
Pearson.