The Smart Forecaster

Pursuing best practices in demand planning, forecasting and inventory optimization

Riding the Tradeoff Curve

Riding the Tradeoff Curve

In the supply chain planning world, the most fundamental decision is how to balance item availability against the cost of maintaining that availability (service levels and fill rates). At one extreme, you can grossly overstock and never run out until you go broke and have to close up shop from sinking all your cash into inventory that doesn’t sell.  At the other extreme, you can grossly understock and save a bundle on inventory holding costs but go broke and have to close up shop because all your customers took their business elsewhere.

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Stop Leaking Money with Manual Inventory Controls

Stop Leaking Money with Manual Inventory Controls

An inventory professional who is responsible for 10,000 items has 10,000 things to stress over every day. Double that for someone responsible for 20,000 items. In the crush of business, routine decisions often take second place to fire-fighting: dealing with supplier hiccups, straightening out paperwork mistakes, recovering from that collision between a truck and the loading dock.

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5 Considerations When Evaluating your ERP system’s Forecasting Capabilities

5 Considerations When Evaluating your ERP system’s Forecasting Capabilities

Consider what is meant by “demand management”, “demand planning”, and “forecasting”. These terms imply certain standard functionality for collaboration, statistical analysis, and reporting to support a professional demand planning process.  However, in most ERP systems, “demand management” running MRP and reconciling demand and supply for the purpose of placing orders

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The 3 Types of Supply Chain Analytics

The 3 Types of Supply Chain Analytics

The three types of supply chain analytics are “descriptive”, “predictive”, and “prescriptive.” Each plays a different role in helping you manage your inventory. Modern supply chain software lets you exploit all three helping you to reduce inventory costs, improve on time delivery and service levels, while running a more efficient supply chain.

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Recent Posts

  • Stock service balanceRiding the Tradeoff Curve
    In the supply chain planning world, the most fundamental decision is how to balance item availability against the cost of maintaining that availability (service levels and fill rates). At one extreme, you can grossly overstock and never run out until you go broke and have to close up shop from sinking all your cash into inventory that doesn’t sell.  At the other extreme, you can grossly understock and save a bundle on inventory holding costs but go broke and have to close up shop because all your customers took their business elsewhere. […]
  • Quantum atom software illustrationQuantum Inventory Theory?
    Physics at the quantum level is quite weird – not at all like what we experience in our usual macroscopic life. Among the oddities are “superposition”, “entanglement”, and “quantum foam.”  Weird as these phenomena are, I cannot help seeing analogs in the supposedly different world of supply chain management. […]