Every supply chain planner’s goal is to provide the highest degree of customer service while reducing inventory in the supply chain network. High customer service translates to more business for the organization, and low inventory costs mean increased working capital. Supply chain planners may struggle to balance both, but good inventory planning software would help
Whether you are a manufacturer, retailer or distributor, inventory is likely one of your largest assets – after cash of course. Managing this asset takes a cross-functional team, all (hopefully) moving in the same direction. Weak management of the inventory process results in a porous supply chain.
A lot of projects propose to deliver ROI through lower levels of inventory. Servicing the demand at desired service levels with lower inventory should save the company some money. But how, exactly?
Successful management of inventory is a hot topic in supply chain management. While it's easy to measure, the cause may be complicated to uncover.
The purpose of this blog is to explain a basic costing challenge in factories and their impact on critical SCM analysis and decisions.
In this blog are some analyses based on the Pareto principle (or as is very commonly referred to as ABC analysis) that one can do in order to determine the alignment of the inventory with the overall needs of the supply chain.
Striking the balance between overstocking and understocking should not always be a guessing game.
Wondering how inventory is modeled in supply chain planning systems? Here's what you need to know.
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