The Smart Forecaster

Pursuing best practices in demand planning, forecasting and inventory optimization

MAX-MIN OR ROP – ROQ

MAX-MIN OR ROP – ROQ

This guest blog details the differences between Min-Max and Reorder Point- Order Quantity replenishment logic and why it is important. It is authored by Phillip Slater, Founder of SparePartsKNowHow.com the leading educational resource for spare parts management. Mr. Slater is a global leader and consultant on materials management and specifically, engineering spare parts inventory management and optimization.

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The Right Forecast Accuracy Metric for Inventory Planning

The Right Forecast Accuracy Metric for Inventory Planning

Traditional forecasting accuracy metrics aren’t applicable when the goal is to optimize inventory. It’s “service level accuracy” that matters because just setting a service target doesn’t mean you’ll actually achieve it. Poor accuracy here has extremely costly implications. The right way to measure accuracy for inventory planning is to focus on the accuracy of the service level projection. This blog explains why and details how to calculate the metric.

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Infrequent Updates to Inventory Planning Parameters Costs Time, Money, and Hurts Service

Infrequent Updates to Inventory Planning Parameters Costs Time, Money, and Hurts Service

Inventory planning parameters such as safety stock levels, reorder points, Min/Max settings, lead times, order quantities, and DDMRP buffers directly impact inventory spending and ability to meet customer demand. Ensuring that these inputs are optimized regularly will dramatically improve customer service levels and will reduce the amount of unnecessary inventory spending.

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Recent Posts

  • Smart Software and Epicor Enhance Supply Chain Planning
    Smart Software, a global provider of next generation 100% web-based demand planning, forecasting and inventory optimization solutions, announces today their enhanced partnership with Epicor Software Corporation. This collaboration for the first time brings the cloud-based Smart IP&O (Inventory Planning and Optimization) into the latest version of the Epicor enterprise resource planning (ERP) solution.
  • The Force Need Not Be With YouThe Force Need Not Be With You
    If there is ‘no try, only do or not do’, then the history of inventory management has seen a lot of not do. So what special powers are needed to turn an ordinary inventory professional into an Inventory Optimizer?”