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...
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...
