by Jon Schreibfeder | Dec 15, 2017 | Stocking Decisions
I worked with a distributor last week that had over 100 locations selling directly to end users. Despite the fact that over 35% of the distributor’s inventory (based on value) was in excess of a one-year supply and that most locations were experiencing frequent stock...
by Jon Schreibfeder | Nov 15, 2017 | Stocking Decisions
Last month, we discussed safety stock as a necessary cost of doing business. It is required to help you prevent stockouts. But this insurance is expensive. We don’t want to provide a specific item with more safety stock than it needs. The deviation method of...
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...
