Reactive destocking

Reactive destocking in supply chain management is a reduction of the inventory when expected demand goes down. When a company is only doing reactive destocking, the desired inventory to sales ratio, remains unchanged. Reactive destocking in general is done by operational managers of the logistical activities, without additional instructions. The inventory can include finished products, raw materials and/or goods in process. The terms "reactive de-stocking" and "active de-stocking" were first used in an article about the Lehman wave, published by Dutch researchers in 2009.

Reactive destocking

Reactive destocking in supply chain management is a reduction of the inventory when expected demand goes down. When a company is only doing reactive destocking, the desired inventory to sales ratio, remains unchanged. Reactive destocking in general is done by operational managers of the logistical activities, without additional instructions. The inventory can include finished products, raw materials and/or goods in process. The terms "reactive de-stocking" and "active de-stocking" were first used in an article about the Lehman wave, published by Dutch researchers in 2009.