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...
by Jon Schreibfeder | Feb 15, 2016 | Forecasting, Stocking Decisions
Last month we began our discussion of safety stock. Safety stock is “insurance” inventory you maintain for a product to prevent stockouts due to unexpected demand or delays in receiving a replenishment shipment. Most systems calculate safety stock quantities based on...
by Jon Schreibfeder | Feb 15, 2015 | Forecasting, Stocking Decisions
“Lean” is a popular word in commerce today. There are a lot of books, articles and seminars that will tell you how to get the “fat” out of your business. Last week I read an article that advised every distributor and manufacturer to practice “just in time” (JIT)...
by Jon Schreibfeder | Sep 15, 2014 | Stocking Decisions
To avoid a possible stockout, a product should be ordered as soon as its replenishment position or net available quantity (i.e., On-Hand – Committed on Current Customer Orders + Current Replenishment Orders) falls down to its reorder point or minimum stock quantity....
