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.
RECENT POSTS
Smart Software to Present at Community Summit North America
Smart Software’s Channel Sales Director and Enterprise Solution Engineer, to present three sessions at this year’s Microsoft Dynamics Community Summit North America event in Orlando, FL.
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Smart Software to lead a webinar as part of the WERC Solutions Partner Program
Smart Software, will lead a 30-minute webinar as part of the WERC Solutions Partner Program. The presentation will focus on how a leading Electric Utility implemented Smart Inventory Planning and Optimization (Smart IP&O) as part of the company’s strategic supply chain optimization (SCO) initiative.
The Supply Chain Blame Game: Top 3 Excuses for Inventory Shortage and Excess
The supply chain has become the blame game for almost any industrial or retail problem. Shortages on lead time variability, bad forecasts, and problems with bad data are facts of life, yet inventory-carrying organizations are often caught by surprise when any of these difficulties arise. So, again, who is to blame for the supply chain chaos? Keep reading this blog and we will try to show you how to prevent product shortages and overstocking.
Recent Posts
Planning for Consumable vs. Repairable PartsWhen deciding on the right stocking parameters for spare and replacement parts, it is important to distinguish between consumable and repairable parts. These differences are often overlooked by inventory planning software and can result in incorrect estimates of what to stock. Different approaches are required when planning for consumables vs. repairables. […]
Four Common Mistakes when Planning Replenishment TargetsHow often do you recalibrate your stocking policies? Why? Learn how to avoid key mistakes when planning replenishment targets by automating the process, recalibrating parts, using targeting forecasting methods, and reviewing exceptions. […]
Extend Epicor Kinetic’s Forecasting & Min/Max Planning with Smart IP&OEpicor Kinetic can manage replenishment by suggesting what to order and when via reorder point-based inventory policies. The problem is that the ERP system requires that the user either manually specify these reorder points, or use a rudimentary “rule of thumb” approach based on daily averages. In this article, we will review the inventory ordering functionality in Epicor Kinetic, explain its limitations, and summarize how to reduce inventory, and minimize stockouts by providing the robust predictive functionality that is missing in Epicor. […]
Scenario-based Forecasting vs. EquationsTraditionally, software has served as a delivery vehicle for equations. This is fine, as far as it goes. But we at Smart Software think you would do better by trading in your equations for scenarios. Learn why Scenario-based planning helps planners better manage risk and create better outcomes. […]
Extend Microsoft 365 BC and NAV with Smart IP&OMicrosoft 365 BC and NAV can manage replenishment by suggesting what to order and when via reorder point-based inventory policies. The problem is that the ERP system requires that the user manually specify these reorder points and/or forecasts. In this article, we will review the inventory ordering functionality in Microsoft BC & NAV, explain its limitations, and summarize how to reduce inventory, and minimize stockouts by providing the robust predictive functionality that is missing in Dynamics 365. […]
Inventory Optimization for Manufacturers, Distributors, and MRO
Blanket OrdersOur customers are great teachers who have always helped us bridge the gap between textbook theory and practical application. A prime example happened over twenty years ago, when we were introduced to the phenomenon of intermittent demand, which is common among spare parts but rare among the finished goods managed by our original customers working in sales and marketing. This revelation soon led to our preeminent position as vendors of software for managing inventories of spare parts. Our latest bit of schooling concerns “blanket orders.” […]
Probabilistic Forecasting for Intermittent DemandThe New Forecasting Technology derives from Probabilistic Forecasting, a statistical method that accurately forecasts both average product demand per period and customer service level inventory requirements. […]
Engineering to Order at Kratos Space – Making Parts Availability a Strategic AdvantageThe Kratos Space group within National Security technology innovator Kratos Defense & Security Solutions, Inc., produces COTS s software and component products for space communications - Making Parts Availability a Strategic Advantage […]
Managing the Inventory of Promoted ItemsIn a previous post, I discussed one of the thornier problems demand planners sometimes face: working with product demand data characterized by what statisticians call skewness—a situation that can necessitate costly inventory investments. This sort of problematic data is found in several different scenarios. In at least one, the combination of intermittent demand and very effective sales promotions, the problem lends itself to an effective solution. […]