The Three Bucket Theory --Dickeson

I'm saying that Fig lag is an UNACCEPTABLE constraint on cash flow. If you measure and report the Fig weekly it will eventually go away due to the nausea of seeing useless cash waste every Monday morning. But, your A/R inventory may increase if you don't accelerate your collection process!

We haven't said anything about raw materials inventory. Most of us think that's what Just In Time is about. That's only partly right. We want to keep our DMOH for raw down by receiving materials as near scheduled production time as possible. But we put in some safety buffers for raw materials that are too extended. Like wearing both a belt and suspenders to hold up our Dockers. There's both a global and local view of Raw DMOH. The local drill down is by lot and type. How many days or hours has that lot been on hand?