by Jon Schreibfeder | Mar 15, 2017 | Forecasting
Determine the Best Forecast Formula Last month, we discussed the fact that a single forecast formula will not accurately predict future usage for all your stocked products. But how do you determine the best forecast formula to use for each item? We have found that...
by Jon Schreibfeder | Feb 15, 2017 | Forecasting
Understanding the Elements of a Forecast A demand forecast is a prediction of the quantity of a specific product that will be sold or used in an upcoming time period (usually a month). The accuracy of your forecast is a determining factor in whether or not you will...
by Jon Schreibfeder | Jan 20, 2017 | Forecasting
Monitoring Your Forecast Accuracy Replenishment capabilities in most computer software packages answer two vital questions: When a stocked item needs to be reordered to avoid a stockout? How much of the product should be ordered? A critical factor in...
by Jon Schreibfeder | Dec 16, 2016 | Forecasting
Most organizations are continually buying new products. Unfortunately, part of the quantity of many of these items is “D.O.A.” or dead on arrival. That is, you do not sell the entire initial purchase quantity. For example, you might buy a case of 48 pieces of an...
by Jon Schreibfeder | Nov 15, 2016 | Stocking Decisions
It is amazing how many organizations are filled with reactive buyers. They spend their days going from crisis to crisis. Often these “emergencies” involve issuing or expediting a purchase order for a product that should have been on the shelf and available for...
by Jon Schreibfeder | Oct 15, 2016 | Stocking Decisions
How often does a salesperson tell you that a customer wants you to stock a certain product? They probably will dictate the number of pieces of the item that should be kept in inventory. You buy the product, place it on the shelf, and forget about it. Twelve months...
by Jon Schreibfeder | Sep 16, 2016 | Order Cycles, Physical Inventory – Cycle Counting
Recently our articles have concentrated on inventory management. That is, the planning process: making sure you have the right quantity, of the right item, in the right location, at the right time. Successful inventory management leads you to reorder products when...
by Jon Schreibfeder | Aug 15, 2016 | Forecasting
Often the best sources of this information are your customers. Indeed, the term “collaborative forecast” refers to a cooperative effort between you and your customers to derive an accurate demand forecast. But, we have found that collaborative information from many...
by Jon Schreibfeder | Jul 15, 2016 | Forecasting, Stocking Decisions
Most computer systems forecast future demand of products based on past usage history. These systems assume that what you sold or used in the past is a good indication of what you will sell or use in the future. But this isn’t always true. For example: ...
by Jon Schreibfeder | Jun 17, 2016 | Purchasing
Often vendors offer a bigger discount or other considerations for placing a larger order. It is tempting to always increase the size of a replenishment order to “get the extra five percent discount” or “qualify for free freight”. Sure, buying at a lower unit cost...
