The Smart Forecaster
Pursuing best practices in demand planning, forecasting and inventory optimization
What is to blame for having too much of the stuff you don’t need and not enough of the stuff you do need? Demand and supply variability are often blamed. These problems are significant and seems impossible to overcome leaving many organizations to simply accept misallocated stock as a cost of doing business. However, the real problem it isn’t simply late supplier deliveries and unpredictable demand. These are supply chain planning “facts of life” and it’s how your company addresses them that counts. Watch Greg Hartunian’s vlog to hear his thoughts and what you can do about it.
Smart Inventory Planning and Optimization automatically calculates the stocking policy that yields the best return for your business considering holding costs, ordering costs, and stock outs. To see it in action, register below to watch a 12 minute demonstration.
Safety stock is a critical component in any system of inventory management. Indeed, some inventory software treats safety stock as the key decision variable in the quest to balance inventory cost against item availability. Unfortunately, that approach is not the best way to strike the balance.
The 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.
When setting a target service level, make sure to take into account factors like current service levels, replenishment lead times, cost constraints, the pain inflicted by shortages on you and your customers, and your competitive position.