About: Active destocking

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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.

Attributes	Values
rdf:type	yago:Abstraction100002137 yago:Attribute100024264 yago:Condition113920835 yago:Crisis113933560 yago:Depression114489113 yago:Difficulty114408086 yago:EconomicCondition114488594 Supreme Court of the United States case yago:Situation114411243 yago:State100024720 yago:WikicatEconomicCrises
rdfs:label	Active destocking (en)
rdfs: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. Decisions for active destocking in general are made by financial executives or general managers. (en)
foaf:depiction
dcterms:subject	Economic crises Business cycle
Wikipage page ID	30748818 (xsd:integer)
Wikipage revision ID	1035347404 (xsd:integer)
Link from a Wikipage to another Wikipage	Beer distribution game Inventory Economic crises Lehman Brothers Libor Demand Damped wave Business cycle Bankruptcy of Lehman Brothers Lehman Wave Stock depth Reactive destocking Bullwhip effect Supply chain Raw materials Lehman wave
sameAs	Active destocking Active destocking Active destocking Active destocking
dbp:wikiPageUsesTemplate	dbt:Reflist
thumbnail	wiki-commons:Special:FilePath/Lehman_Wave_curve_and_economic_cycle_curve.jpg?width=300
has 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 reactive destocking. Reactive destocking is a reduction of the inventory when expected demand goes down. When a company is only doing reactive destocking the inventory-to-sales ratio remains unchanged. Reactive destocking in general is done by the operational managers of the logistical activities, without additional instructions. The terms active destocking and reactive 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 and 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 reactive 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. (en)
gold:hypernym	Decision
prov:wasDerivedFrom	wikipedia-en:Active_destocking?oldid=1035347404&ns=0
page length (characters) of wiki page	8349 (xsd:nonNegativeInteger)
foaf:isPrimaryTopicOf	wikipedia-en:Active_destocking
is Link from a Wikipage to another Wikipage of	Lehman Wave Stock depth Reactive destocking
is foaf:primaryTopic of	wikipedia-en:Active_destocking

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