Inventory Forecasting is the process in which the historical sales data, historical purchasing data, current demand planning, planned production, and distribution resource plan data are used for predicting inventory levels in a future time period.
Scientific and system-driven Inventory Projection facilitates a quick decision-making process and enables a prompt analysis of alternative what-if scenarios. The following are the top 7 benefits of system driven inventory projection.
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.
Striking the balance between overstocking and understocking should not always be a guessing game.
One of my favorite Holiday songs growing up was “The 12 Days of Christmas.” There was something about Christmas having 12 days that put me in the holiday spirit.
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.
What's the effect of customer order lead time in inventory management and safety stock calculations?
A look at how you can use product and customer ABC segmentation for Inventory management.
In an ideal world, your products would have on-shelf availability whenever your customer needs them. However, this is often not the case for many businesses. It’s also essential to note that, not all stock outs or out-of-stock(OOS) carry the same severity levels or require the same form of actions. In this blog post, we’ll discuss a simple coding system using descriptive analytics that can help you easily identify different severity levels for your stock out.
I discussed some of the possible pitfalls when using inventory turnover as a measurement for effective inventory management. In this post, I’ll describe a simple technique for measuring inventory effectiveness.