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- Active_destocking abstract "Active destocking in supply chain management is an active decision to reduce the inventory-to-sales ratio of a company. The inventory can include finished products, raw materials and goods in process. In general Active destocking is done following an autonomous, often financial decision by a company to improve its efficiency, free up cash and reduce its costs. Decisions for Active destocking in general are made by financial executives or general managers.Active destocking should be distinguished from Re-Active destocking. Re-Active destocking is a reduction of the inventory when expected demand goes down. When a company is only doing Re-Active destocking the inventory-to-sales ratio remains unchanged. Re-Active destocking in general is done by the operational managers of the logistical activities, without additional instructions.The terms Active destocking and Re-Active destocking were first used in an article about the Lehman Wave, published by Dutch researchers in 2009.A Lehman Wave refers to an economy-wide fluctuation in production and in economic activity with a wavelength of between 12 to 18 months, driven by a sudden major disruption of the economic system. The Lehman Wave is a dampened, wave-like fluctuation around equilibrium. The amplitude of the Lehman Wave is larger for a business that is further away from its end market than for a business that is closer to its end market, which difference is caused by cumulative destocking of the intermediate supply chain.The first described Lehman Wave was caused by global Active destocking and Re-Active destocking after the financial panic following the bankruptcy of Lehman Brothers on September 15, 2008. The Lehman Wave can have strong effects on the sales volume and therefore on the profitability of companies higher in the value chain.".
- Active_destocking thumbnail Lehman_Wave_curve_and_economic_cycle_curve.jpg?width=300.
- Active_destocking wikiPageID "30748818".
- Active_destocking wikiPageRevisionID "577916808".
- Active_destocking hasPhotoCollection Active_destocking.
- Active_destocking subject Category:Business_cycle.
- Active_destocking subject Category:Economic_crises.
- Active_destocking type Abstraction100002137.
- Active_destocking type Attribute100024264.
- Active_destocking type Condition113920835.
- Active_destocking type Crisis113933560.
- Active_destocking type Depression114489113.
- Active_destocking type Difficulty114408086.
- Active_destocking type EconomicCondition114488594.
- Active_destocking type EconomicCrises.
- Active_destocking type Situation114411243.
- Active_destocking type State100024720.
- Active_destocking comment "Active destocking in supply chain management is an active decision to reduce the inventory-to-sales ratio of a company. The inventory can include finished products, raw materials and goods in process. In general Active destocking is done following an autonomous, often financial decision by a company to improve its efficiency, free up cash and reduce its costs.".
- Active_destocking label "Active destocking".
- Active_destocking sameAs m.0gfj3gt.
- Active_destocking sameAs Q4677553.
- Active_destocking sameAs Q4677553.
- Active_destocking sameAs Active_destocking.
- Active_destocking wasDerivedFrom Active_destocking?oldid=577916808.
- Active_destocking depiction Lehman_Wave_curve_and_economic_cycle_curve.jpg.
- Active_destocking isPrimaryTopicOf Active_destocking.
