Imagine that you must provide daily forecast results but can only obtain historical demand at monthly or weekly levels. Often times, granular demand data is not available. How do you proceed? Converting aggregate quarterly, monthly, or weekly data to daily data is example of the time series dissaggregation problem. Dr. Willemain will discuss current solutions to this problem and press an improved solution.
- 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 T…How 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…Epicor 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. […]
Pursuing best practices in demand planning, forecasting and inventory optimization
- The Supply Chain Blame Game: Top 3 Excuses for In…Blog, Inventory control, Inventory Optimization, Operational AnalyticsThe 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. […]
- Managing Inventory amid Regime ChangeDemand Planning, Inventory OptimizationIf you hear the phrase “regime change” on the news, you immediately think of some fraught geopolitical event. Statisticians use the phrase differently, in a way that has high relevance for demand planning and inventory optimization. This blog is about “regime change” in the statistical sense, meaning a major change in the character of the demand for an inventory item. […]
- Goldilocks Inventory LevelsBlog, Inventory control, Inventory OptimizationYou may remember the story of Goldilocks from your long-ago youth. Sometimes the porridge was too hot, sometimes it was too cold, but just once it was just right. Now that we are adults, we can translate that fairy tale into a professional principle for inventory planning: There can be too little or too much inventory, and there is some Goldilocks level that is “just right.” This blog is about finding that sweet spot. […]