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...
by Jon Schreibfeder | May 15, 2016 | Order Cycles
Last month we discussed calculating the order cycle (also commonly known as the review cycle). That is, how often you should place replenishment orders with a vendor. Another way of defining it is how often you sell or use enough of a particular vendor’s products to...
by Jon Schreibfeder | Apr 15, 2016 | Forecasting, Stocking Decisions
This month we will begin to examine the last of the parameters used to determine when to reorder a product, the order cycle (also known as the review cycle). The order cycle is the normal time between issuing replenishment orders with a supplier that meet that...
by Jon Schreibfeder | Mar 16, 2016 | Analysis, Forecasting
Over the last several months, we have been discussing various ways of calculating safety stock quantities. If safety stock quantities are too low, they will not provide adequate insurance to prevent stockouts in case of unusually high demand or delays in receiving a...
by Jon Schreibfeder | Feb 15, 2016 | Forecasting, Stocking Decisions
Last month we began our discussion of safety stock. Safety stock is “insurance” inventory you maintain for a product to prevent stockouts due to unexpected demand or delays in receiving a replenishment shipment. Most systems calculate safety stock quantities based on...
