by Jon Schreibfeder | Sep 19, 2012 | Replenishment Parameters
Safety stock provides protection against stock outs due to unexpected demand for a product or delays in receiving a replenishment shipment from a supplier. It is insurance – and like other types of insurance, it is an expense of doing business. Like many other types...
by Jon Schreibfeder | Sep 19, 2012 | Replenishment Parameters
Over the next few months, we will discuss setting meaningful replenishment parameters. Today’s article deals with the importance of setting accurate anticipated lead times. The anticipated lead time is the amount of time (usually expressed in days) we estimate...
by Jon Schreibfeder | Sep 19, 2012 | Replenishment Parameters
I received a call from a customer this week saying that the minimum quantities in his computer system were far too high. Joe explained, “We normally sell four pieces of product #A100 per month. The computer system has a minimum quantity set at eight pieces. If...
by Jon Schreibfeder | Sep 19, 2012 | Replenishment Parameters
A few months ago we published an article entitled “Trimming Inventory While Maintaining a High Level of Customer Service.” In that article, we suggested that you “micro-manage” your fast-moving products by ensuring that forecasts are accurate...
by Jon Schreibfeder | Sep 19, 2012 | Replenishment Parameters
Computer systems maintain the stock of inventory items with parameters such as minimum and maximum quantities. Some of these parameters are objective – that is, there is one right or optimum answer. For example, an economic order quantity balances the actual cost of a...
by Jon Schreibfeder | Jul 1, 2012 | Replenishment Parameters
Many companies today have multiple stores or branches, each stocking a number of products. When planning replenishment of products to smaller locations, buyers must decide whether to buy products directly from a supplier or to transfer quantities from a central...
