Inventory control policies and strategies for a more profitable business
In this Video Dr. Thomas Willemain, co–Founder and SVP Research, defines and compares the three most used inventory control policies. These policies are divided into two groups, periodic review and continuous review. There is also a fourth policy called MRP logic or forecast based inventory planning which is the subject of a separate video blog that you can see here. These videos explain each policy, how they are used in practice and the pros and cons of each approach.
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![Forecast-Based Inventory Management for Better Planning](https://smartcorp.com/wp-content/uploads/2024/07/Forecast-Based-Inventory-Management-for-Better-Planning-1080x675.jpg)
Forecast-Based Inventory Management for Better Planning
Forecast-based inventory management, or MRP (Material Requirements Planning) logic, is a forward-planning method that helps businesses meet demand without overstocking or understocking. By anticipating demand and adjusting inventory levels, it maintains a balance between meeting customer needs and minimizing excess inventory costs. This approach optimizes operations, reduces waste, and enhances customer satisfaction.
![Make AI-Driven Inventory Optimization an Ally for Your Organization](https://smartcorp.com/wp-content/uploads/2024/07/Make-AI-Driven-Inventory-Optimization-an-Ally-for-Your-Organization-1-1080x675.jpg)
Make AI-Driven Inventory Optimization an Ally for Your Organization
In this blog, we will explore how organizations can achieve exceptional efficiency and accuracy with AI-driven inventory optimization. Traditional inventory management methods often fall short due to their reactive nature and reliance on manual processes. Maintaining optimal inventory levels is fundamental for meeting customer demand while minimizing costs. The introduction of AI-driven inventory optimization can significantly reduce the burden of manual processes, providing relief to supply chain managers from tedious tasks.
![The Importance of Clear Service Level Definitions in Inventory Management](https://smartcorp.com/wp-content/uploads/2024/07/The-Importance-of-Clear-Service-Level-Definitions-in-Inventory-Management-FHD-1080x675.jpg)
The Importance of Clear Service Level Definitions in Inventory Management
Inventory optimization software that supports what-if analysis will expose the tradeoff of stockouts vs. excess costs of varying service level targets. But first it is important to identify how “service levels” is interpreted, measured, and reported. This will avoid miscommunication and the false sense of security that can develop when less stringent definitions are used. Clearly defining how service level is calculated puts all stakeholders on the same page. This facilitates better decision-making.