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...
by Jon Schreibfeder | Oct 1, 2011 | Replenishment Parameters
For many organizations, 50% or more of their stocked inventory items have sporadic usage – that is, they are not sold or used on a regular basis. In previous articles, we have discussed how typical demand forecast techniques that predict the quantity of the product...
by Jon Schreibfeder | Jan 10, 2011 | Replenishment Parameters
A few months ago, in an article entitled “The Mysterious Cost of Carrying Inventory,” we published a questionnaire that you can fill out, return to us, and have us calculate your specific company’s inventory carrying cost percentage – that is, what...
by Jon Schreibfeder | Jan 10, 2011 | Replenishment Parameters
The carrying cost of inventory is the cost of maintaining your average inventory investment of inventory in your warehouse, storeroom, stockroom, or other location where you stock raw materials or finished goods. What costs do you incur in carrying inventory? Cost of...
by Jon Schreibfeder | Jul 1, 2002 | Replenishment Parameters
When the stock level of an item falls below the minimum quantity, it is time to reorder the product, right? But we’ve found some instances where it is difficult to maintain accurate stock levels because it is impractical to record each individual material...
