Material movement and storage activities should be fully integrated to form a coordinated, operational system that spans receiving, inspection storage, production assembly, packaging, utilizing, order selection, shipping, transportation and the handling of returns.



  1. System integration should encompass the entire supply chain. It should include suppliers, manufacturers, distributors, and customers.
  2. Inventory level should be minimized at all stages of production and distribution while respecting considerations of process variability and customer service.
  3. Information flow and physical material flow should be integrated and treated as concurrent activities.
  4. Methods should be provided for easily identifying materials and products, for determining their location and status within facilities and within the supply
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