by Jon Schreibfeder | Jul 15, 2015 | Replenishment Parameters
A lot of software packages advise buyers to purchase enough stock so that the product demand is met during the “replenishment horizon”. The replenishment horizon is equal to the sum of: • Demand during anticipated lead time • Demand during the upcoming order cycle •...
by Jon Schreibfeder | Jun 15, 2015 | Order Cycles
The order cycle (also commonly known as a review cycle) is the length of time (usually expressed in days) between the issuance of target replenishment orders to the primary supplier of a product. The target order represents your vendor’s purchase requirement...
by Jon Schreibfeder | May 15, 2015 | Order Cycles
In order to avoid stock outs, you must reorder products when you still have enough stock remaining in inventory to satisfy customer demand during the anticipated lead time. You also might want to keep some safety stock just in case you sell more than you forecast or...
by Jon Schreibfeder | Apr 15, 2015 | Forecasting, Replenishment Parameters
Over the last several months, we have been discussing barriers to achieving lean inventory management. That is, having inventory arriving “just in time” when it is needed by a customer or for use in an assembly or repair. Successful lean distribution is dependent on...
by Jon Schreibfeder | Mar 20, 2015 | Forecasting
Last month, we began a discussion of evaluating your inventory based on the number of day’s supply of inventory you have in stock. That is, how long your current inventory would fulfill anticipated customer demand. The major determinants of day’s supply of inventory...
