HOW LOW CAN INVENTORIES GO?

摘要

At this point during the last eco-nomic slowdown, in the early '90s, Behlen Mfg. Co. wouldn't have been caught dead with its current low level of inventories. Uncertain about the economy, the Columbus (Neb.) metal fabricator would have wanted its in-ventory-to-sales ratio to run about 1.6, or 160% more inventory on hand than total monthly sales. If demand picked up, says CEO Tony Raimondo, that's what he'd have needed to cover orders. But in this slump, that ratio is now 1.4. And by keeping a brake on supplies, Behlen hopes to be at 1.2 in six months.