What is the maximum duration for which shop stock should be maintained?

Maintaining shop stock for a maximum duration of 90 days is crucial for effective material management. This timeframe is considered optimal as it strikes a balance between ensuring that necessary materials are available for production and avoiding excessive inventory that can lead to increased holding costs.

By capping the duration at 90 days, organizations can minimize the risks associated with material obsolescence, deterioration, and changes in demand. Additionally, this period allows for regular reviews and adjustments to inventory levels, enabling more agile responses to fluctuations in requirements. Efficient stock management ensures that materials are fresh, relevant, and aligned with current production needs, supporting overall operational efficiency and cost-effectiveness.

Longer durations, such as 120 or 180 days, could increase the likelihood of inventory becoming outdated and lead to increased costs related to storage, handling, and potential waste. Hence, keeping the duration to 90 days is a practice in line with industry standards for inventory turnover and effective supply chain management.