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 | 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...
by Jon Schreibfeder | Dec 15, 2015 | Forecasting, Replenishment Parameters
In the current series of articles, we are looking at how to best set parameters in your replenishment software. There are four critical factors that determine how successful you are in having the right quantity of the right item at the right location at the right...
by Jon Schreibfeder | Oct 15, 2015 | Forecasting, General
Many computer software packages today rave about their advanced forecasting and replenishment capabilities. If these systems are so good, why do so many buyers still make all of their replenishment decisions by “S.W.G.” (Scientific Wild Guessing)? We have identified...
