Struggling with Multi-Echelon Inventory Adoption

The benefits of a multi-echelon approach to inventory are always convincing. So then why is multi-echelon inventory adaption so slow to catch-on? Dr. Bram Desmet explores single-echelon vs. multi-echelon inventory approaches, and some of the reasons behind the slow rate of multi-echelon inventory adoption.

Using Coefficient of Variation as a Guide for Safety Stocks

In one of my previous posts, I wrote about using coefficient of variation (CV) as a predictor of forecastability. In this post, I will talk about how it can be used to indicate a sensitivity of lead time towards the safety stock calculations. To quickly remind the reader first: The formula for CV = StdDev

Cycle Service Level Versus Fill Rate Service Level – Part One

Most businesses would put high customer service as one of their top business priorities. While there are many different things that make up the overall customer experience, one of the key performance indicators (KPIs) that companies measure is the timely delivery of goods to the customer. In safety stock calculations, this is typically an input

By |2019-04-13T23:09:57-04:00September 15th, 2015|Inventory Management, Safety Stock, Safety Stock|2 Comments

Eliminating Some Of The Safety Stock Mystery

In the simplest inventory situation, the only variability is in the quantity of demand for a single day.  There is no trend up or down or seasonal effect. The demand today is independent of the demand for tomorrow.  Additionally, we will assume replenishment time is zero.  That is when we place an order for additional

Is your Business in Need of Multi-Echelon Inventory Optimization (MEIO)?

In one of my previous blog posts on inventory, I used the info-graphic above to show the evolution of software to calculate safety stock. Since then, I have been asked the following question by several supply chain colleagues: How should one decide if their business needs Multi-Echelon Inventory Optimization (MEIO)? This is my attempt at

By |2019-04-13T23:10:02-04:00June 2nd, 2015|Inventory Management|0 Comments

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