by Jon Schreibfeder | Oct 15, 2017 | Stocking Decisions
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. Like most other types of insurance, it is an expense and there is no “right” or optimum...
by Jon Schreibfeder | Apr 15, 2017 | Forecasting, Stocking Decisions
What Affects Forecasts Other Than Past Usage Most computers systems calculate forecasts of future demand based on past sales or usage. The theory is that what you sold or used in the past is a good indication of what you will sell or use in the future. But there are...
by Jon Schreibfeder | Nov 15, 2016 | Stocking Decisions
It is amazing how many organizations are filled with reactive buyers. They spend their days going from crisis to crisis. Often these “emergencies” involve issuing or expediting a purchase order for a product that should have been on the shelf and available for...
by Jon Schreibfeder | Oct 15, 2016 | Stocking Decisions
How often does a salesperson tell you that a customer wants you to stock a certain product? They probably will dictate the number of pieces of the item that should be kept in inventory. You buy the product, place it on the shelf, and forget about it. Twelve months...
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...
