Conditional Probability Made Easy – Heart of Machine Learning

Probabilities are persuasive in supply chains and analytic methods – especially in machine learning where conditional probability is a dominant underlying structure that makes or breaks the success of an application. In this blog, we will learn how to take the mystery out of the term ‘conditional probability’.

“Optimized” Inventory Forecasting a Co-Product of Optimized Central Planning

In a recent blog on Inventory Forecasting the core challenges and business importance of estimating inventory are outlined. A projected inventory position across time (plan) is a natural co-product of most central or master planning models that match assets with the demand to create a projected supply line linked to demand. 

Impact of right-sizing inventory on EBITDA

Supply chain planning projects are often approved on the back of the promise of lower inventory levels. In a recent conversation, I was asked a more nuanced question: whether right-sizing inventory via better supply chain planning improves earnings before interest, tax, depreciation, and amortization (EBITDA). This blog tries to address this question.

By |2019-08-07T11:15:12-04:00August 7th, 2019|Inventory Management|0 Comments

Creating Detailed Customer Order Allocation Data for Yearly Volume Contracts

A guide on how to improve material planning using a more detailed volume allocation of customer orders. It is a common business practice to write up yearly contracts for the volume. Very often, this is done to extend volume discounts to the customer. That is obviously a benefit to the customer. The supplier benefits by knowing how much to budget for in terms of production through the year. They can also count on the revenue coming in.

By |2019-04-13T23:09:03-04:00August 21st, 2018|Inventory Management|0 Comments

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