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 | Jul 10, 2019 | Analysis, Best Practices, Forecasting, Order Cycles, Purchasing, Replenishment Parameters, Stocking Decisions
Protecting Customer Service – Part 2 Last month we began a discussion of safety stock. That is, “insurance inventory” to protect against unusually high demand or delays in receiving a replenishment shipment from the supplier of an item. Though we found...
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 | Jul 15, 2013 | Analysis
In previous newsletter articles we have discussed the customer service level. This is a measurement of the number of line items on sales orders shipped complete in one shipment on or before the date the material was promised to the customer. The customer service...
by Jon Schreibfeder | Mar 15, 2013 | Analysis
The phenomenon of “inventory creep”: a constant increase in inventory without a corresponding increase in sales. Management is often puzzled when this occurs, despite having implemented an expensive, state of the art inventory management system. The most common...
