by Jon Schreibfeder | Apr 15, 2020 | Analysis, Best Practices, Consulting, Forecasting
Inventory Management with the COVID-19 Pandemic – Part 2 Managing your Safety Stock Many of our clients are reporting that their overall revenues are far lower than they were before the pandemic while their expenses remain the same or have increased. They need to...
by Jon Schreibfeder | Apr 1, 2020 | Analysis, Best Practices, Forecasting
Inventory Management during the COVID-19 Pandemic, Part I Adjusting Future Forecasts of Products The world has changed since we sent out our last newsletter in early March. We have been answering many questions concerning how to best manage your inventory under...
by Jon Schreibfeder | Mar 5, 2020 | Analysis, Best Practices, Consulting, Forecasting, General, Order Cycles, Purchasing
Key Metrics to Measure Inventory Management Success Turn Earn Index and GMROI If a company enjoys high gross margins, it can be successful with lower inventory turns. Many companies that sell goods being liquidated justify keeping items in their warehouse for years,...
by Jon Schreibfeder | Feb 1, 2020 | Analysis, Best Practices, Forecasting, Order Cycles, Purchasing, Replenishment Parameters, Stocking Decisions, Vendor Managed Inventory, Warehousing
Key Metrics to Measure Inventory Management Success Inventory Turnover Last month we began our discussion of key inventory metrics with the customer service level. While the customer service level is probably the most important inventory measurement, inventory...
by Jon Schreibfeder | Jan 1, 2020 | Best Practices, Forecasting, Order Cycles, Purchasing, Replenishment Parameters, Replenishment Source, Stocking Decisions, Uncategorized, Vendor Managed Inventory, Warehousing
Key Metrics to Measure Inventory Management Success The goal of effective inventory management is to meet or exceed customer’s expectations of product availability with the amount of each item that will maximize your net profits. As they go through the daily process...
by Jon Schreibfeder | Dec 1, 2019 | Analysis, Best Practices, Forecasting, Order Cycles, Physical Inventory – Cycle Counting, Purchasing, Replenishment Parameters, Replenishment Source, Stocking Decisions, Warehousing
How Much You Should Buy – Part II Last month we began a discussion of the economic order quantity (EOQ) formula. The economic order quantity is a mathematical equation. It will always provide the replenishment quantity that provides the lowest total cost. That is, the...
by Jon Schreibfeder | Nov 1, 2019 | Analysis, Best Practices, Forecasting, Order Cycles, Purchasing, Replenishment Parameters, Replenishment Source, Stocking Decisions, Warehousing
How Much Should You Buy? Part 1 By Jon Schreibfeder Over the past several months we have been reviewing the basics of setting replenishment parameters to ensure that you achieve the goal of effective inventory management: meeting or exceeding your customers’...
by Jon Schreibfeder | Oct 8, 2019 | Analysis, Best Practices, Forecasting, Order Cycles, Purchasing, Replenishment Parameters, Stocking Decisions
Unrealistically Short Order Cycles Lead to Anarchy By Jon Schreibfeder The order cycle (also commonly known as a review cycle) is the length of time (usually expressed in days) between when you can issue target replenishment orders with the primary supplier of a...
by Jon Schreibfeder | Sep 30, 2019 | Analysis, Best Practices, Forecasting, Order Cycles, Purchasing, Replenishment Parameters
Managing the Frequency of Purchase Orders Over the past several months, we have been reviewing the critical components of determining when to order a product and how much to order. This month we continue our discussion with the order cycle (also known as the...
by Jon Schreibfeder | Aug 6, 2019 | Best Practices, Forecasting, Order Cycles, Purchasing, Replenishment Parameters, Replenishment Source, Stocking Decisions
Fine Tuning Safety Stock Quantities There is a simple, best practice residual inventory analysis that will help ensure that the safety stock quantity you maintain for each item is “just right”. To perform this analysis: Record for each item, the forecast...
