The Smart Forecaster

 Pursuing best practices in demand planning,

forecasting and inventory optimization

We are often asked what the difference is between these two important performance metrics for inventory planning. While they are both important for measuring how successful a business is in meeting demand, their meaning is very different.  If not understood and incorporated into the strategic inventory planning process, inventory will be inefficiently allocated resulting in lower customer service and higher carrying costs.  We’ve illustrated the difference in this 4 minute recording using Microsoft Excel.

 

 

 

Graphic to approach is advocated nearly universally for assessing forecast accuracySmart Operational Analytics automatically calculates historical service levels & fill rates across any item.  To see how you calculate these and other operational metrics including inventory turns, supplier performance, and more register below to watch a five minute demonstration.  The demo will show how our cloud platform continuously calculates and reports these metrics across thousands of items helping you identify opportunities for service level improvement and inventory reduction.

 

    Your Name *

    Company Name *

    Work Email *

    Work Phone


     

    Leave a Comment

    Related Posts

    Call an Audible to Proactively Counter Supply Chain Noise

    Call an Audible to Proactively Counter Supply Chain Noise

    You know the situation: You work out the best way to manage each inventory item by computing the proper reorder points and replenishment targets, then average demand increases or decreases, or demand volatility changes, or suppliers’ lead times change, or your own costs change.

    An Example of Simulation-Based Multiechelon Inventory Optimization

    An Example of Simulation-Based Multiechelon Inventory Optimization

    Managing the inventory across multiple facilities arrayed in multiple echelons can be a huge challenge for any company. The complexity arises from the interactions among the echelons, with demands at the lower levels bubbling up and any shortages at the higher levels cascading down.

    Fact and Fantasy in Multiechelon Inventory Optimization

    Fact and Fantasy in Multiechelon Inventory Optimization

    For most small-to-medium manufacturers and distributors, single-level or single-echelon inventory optimization is at the cutting edge of logistics practice. Multi-echelon inventory optimization (“MEIO”) involves playing the game at an even higher level and is therefore much less common.

    Recent Posts

    • Stay the course of demand planning and optimizationStay the course
      We’ve found that a few things help new customers exploit the power of advanced analytics for forecasting and inventory optimization. One is having a champion among management, an executive sponsor, who can vouch for the commercial importance of a successful implementation while ensuring the users are supported with continuing education. […]
    • Software to Proactively Counter Supply Chain NoiseCall an Audible to Proactively Counter Supply Chain Noise
      You know the situation: You work out the best way to manage each inventory item by computing the proper reorder points and replenishment targets, then average demand increases or decreases, or demand volatility changes, or suppliers’ lead times change, or your own costs change. […]