Money Transfer Supply Chain Analogy
Your goal is to maximize the money kept in the Saving’s account. And therefore, minimize the money in your Checking account. But don’t let the checking balance drop below zero.
Your goal is to maximize the money kept in the Saving’s account. And therefore, minimize the money in your Checking account. But don’t let the checking balance drop below zero.
Looking back, I don’t know what took me so long to realize that I have outgrown you. You never had an adaptable planning process – you only work if there is no variability.
Because precision is, um, well, precise, you now have a different starting point for your journey’s second leg. Which means all the future plans you made will need changing.
In traditional MRP, we start with a prediction of demand called a forecast, which is typically a range. We are forced to choose one single number to represent that range which we then input into a complex calculator.
Typically, your family uses three eggs per day, so you set a safety stock level of six (two days worth). This means you never intend to have less than six eggs. That way, you should not have to rush to the grocery store just because of eggs.
Sometimes Supply Chain feels harder than Mission Impossible. Is five seconds really enough warning prior to something self-destructing?
What if we could segment the precision, with built-in connectivity between the segments, rather than forcing the entire operation into a step by step linear process?
During our phone conversation yesterday, when you asked me how long before we could ship our product to you, I went about researching the lead time for our top selling product.
It may be common knowledge among Supply Chain Professionals, but I wonder if everyone else in most companies really understands what is going on behind the software called MRP and the complexity related to bringing all of the component parts to be in the right place, right time and right quantity.
Forecast Accuracy has been a topic of discussion for decades. Just from my own time in supply chain (20 plus years), it’s always been front
On a recent trip, I tried to remain cashless. No need to exchange money. Just use credit cards everywhere. I even used my phone “wallet”
Forecast Accuracy has been a topic of discussion for decades. Just from my own time in Supply chain (20 plus years), it’s always been front
The most common situation in business. Sales: “We ran out of inventory. You need to keep enough on hand so we can sell.” Purchasing: “We
This is the way we’ve always done it. We hear it all the time. It’s often given as the most dangerous sentence in all the
The biggest lie we have ever been told: It’s not that simple. Why do we in Supply Chain accept the chaos? We complain about it,
This is a common discussion for me. People are convinced that safety stock will help them to achieve inventory management goals. But when I ask
The Demand Driven MRP methodology begins with Positioning. Inventory Positioning specifically. What is so special about positioning? It is the key to solving one of
All of us are limited by what we can imagine. And that is often influenced by what we have seen or how we have worked
