Supply Chain Illustrated

Stop Managing Chaos
Start Driving Change


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.

There must be a better way

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.

Chasing the same problems for decades

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?

A CFO, a CEO and a COO walk into a bar.

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.

Problem Solving

The Problem-Solving Dilemma

When trying to implement a culture change or a lifestyle change or any kind of a change, you need to be intentional.

Safety Stock – a misleading solution

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.

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