User:Supplysideguy/sandbox

The PIM model or Partnerized Inventory Management modelis a business term used to define an inventory management technique often used in deterministic – inventory systems in which a significant portion of the total inventory regularly becomes more stochastic in nature due to slowing and/or low demand.

In cases where a manufacturer maintains inventory to supply future maintenance of their in-service equipment, for instance, traditional inventory management techniques break down. As demand for Finished goods approaches zero, liquidation of inventory is indicated in most revenue management models. Zero inventory to service products in the field, however, fails the organization on many levels far beyond the immediate financial concerns that are remedied by liquidating inventory entirely by scrapping or discarding it as waste,

Just as scrapping essentially returns inventory to the market as raw materials, Partnerized Inventory Management (PIM) returns inventory to the market as either intermediate goods to be used in production of other goods or non-capital spare parts to be used to service existing products. . An organization that uses the PIM model benefits by retaining as-needed mutual access to inventory through the marketplace for an indeterminate time rather than losing access immediately and irrevocably through scrapping or discarding the inventory as waste.