by Jon Schreibfeder | Jul 15, 2017 | Replenishment Parameters
When you replenish the stock of an item, you must decide how much you should order. Many computer systems utilize the economic order quantity (EOQ) formula in helping to make this decision. The formula was originally developed by Ford W. Harris in 1913. Since that...
by Jon Schreibfeder | Jan 15, 2016 | Replenishment Parameters
In the current series of articles we are working through how to optimally 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...
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 | 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 | 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 | Nov 12, 2012 | Replenishment Parameters
I was reviewing replenishment parameters for several inventory items with a client this week. We ran across an item where a buyer had established a minimum stock level of 10 pieces and a maximum stock level of sixty pieces. The item is typically sold 10 pieces at...
