Figure 3 – Simulated effects of reducing the Min at the DC.
- Stay the courseWe’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. […]
- Call an Audible to Proactively Counter Supply Chain NoiseYou 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. […]
- A Beginner’s Guide to Downtime and What to Do about ItIf you manufacture things for sale, you need machines to make those things. If your machines are up and running, you have a fighting chance to make money. If your machines are down, you lose opportunities to make money. […]
Pursuing best practices in demand planning, forecasting and inventory optimization
- Coping with Surging Demand During the ReboundBlog, Demand PlanningMany of our customers that saw demand dry up during the pandemic are now seeing a significant demand surge. Other customers in critical industries like plastics, biotech, semiconductors and electronics saw demand surges starting as far back as last April. For suggestions about how to cope with these situations, please read on. […]
- Six Steps Up the Learning Curve for New PlannersBlog, Demand PlanningIf you are a new professional in the field of inventory management, you face a very steep learning curve. There are many moving parts in the system you manage, and much of the movement is random. You may find it helpful to take a step back from the day-to-day flow to think about what it takes to be successful. Here are six suggestions that you may find useful; they are distilled from working over thirty five years with some very smart practitioners. […]
- 5 Demand Planning Tips for Calculating Forecast UncertaintyBlog, Demand Planning, Excellence in ForecastingThose who produce forecasts owe it to those who consume forecasts, and to themselves, to be aware of the uncertainty in their forecasts. This note is about how to estimate forecast uncertainty and use the estimates in your demand planning process. We focus on forecasts made in support of demand planning as well as forecasts inherent in optimizing inventory policies involving reorder points, safety stocks, and min/max levels. […]