Challenge #1: Reality
Reality #1: We live in an imprecise world. Challenge #1: We have flawed data and inaccurate forecasts. Misconception #1. We think the right thing to
Reality #1: We live in an imprecise world. Challenge #1: We have flawed data and inaccurate forecasts. Misconception #1. We think the right thing to
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?”
the more steps you have, the less likely your calculations will be completely predictable.
So, why are we still applying the solution when we no longer are facing the problem? There are only two possible answers to that.
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.
“We’re taking data we know is wrong and using it to predict a precise outcome that we somehow expect to be right.
The irony is two-fold. First, for all our talk about processes and process improvement, we really spend an obscene amount of time manually adjusting and firefighting to achieve the desired outcome.
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.
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
