Safety Stock vs DDMRP Buffer
And since I imagine none of you would be happy without a gas gauge, then I ask you, “Why do you think Safety Stock is sufficient to manage millions of dollars’ worth of inventory?”
And since I imagine none of you would be happy without a gas gauge, then I ask you, “Why do you think Safety Stock is sufficient to manage millions of dollars’ worth of inventory?”
“We’re taking data we know is wrong and using it to predict a precise outcome that we somehow expect to be right.
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.
I asked a group of supply chain purchasing and planning professionals a simple question. I asked them how they decide just when to place an order and just how much.
Reduce Inventory, they said. And they’re still saying it. We’ve been working on the same things for decades. How is it possible that we are chasing the right things, but not achieving the goal?
If you have product available, then sales will result. You will only maintain that level of sales if you have the capability to produce to the customer demand. And if you produce only what the customer is buying, then you will have the money to pay bills, including worker salary.
When trying to implement a culture change or a lifestyle change or any kind of a change, you need to be intentional.
Sometimes Supply Chain feels harder than Mission Impossible. Is five seconds really enough warning prior to something self-destructing?
I was mapping what I thought my own Work-Life balance should include, based on one current methodology. Physical, Emotional, … and then I went off the rails. Because I started thinking about the viewpoint of the company and how aligning the company’s Work-Life balance offering with the individual’s Work-Life balance requirements will make a huge difference in achieving that balance.
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
