by Don Johnston | Nov 25, 2021 | Optimisation, Replenishment
Preview in new tab http://www.inventoryadvice.com/wp-content/uploads/2021/11/InventoryControlCosts.mp4 Using a target service level to set safety stocks prevents optimisation. That is because the optimum service level is different for different items. Using the same...
by Don Johnston | Nov 9, 2021 | Inventory Strategist, Replenishment, Uncategorized
You can find out how good your reordering criteria (minimum and maximum levels) are by comparing their effects with those of near optimal criteria. There is open source software which can be used for this purpose. Instructions for downloading, installing and using it...
by Don Johnston | Mar 5, 2017 | Forecasting, Replenishment
This article contains information concerning the mathematics involved in the spreadsheets which are described in Part 1. That article was revised on 5 March 2017 and the spreadsheets were revised on 19 February 2017. It is assumed that the readers of this article have...
by Don Johnston | Feb 1, 2017 | Forecasting, Replenishment
Replenishment decisions rely on forecasts of lead times amongst other things. If the mean lead time for an item is not expected to change much then the average of recent lead times for the item can be used. Unless that item is purchased frequently, there won’t...
by Don Johnston | Jan 22, 2017 | Forecasting, Inventory Management Basics, Lead Time Reduction, Replenishment
It is easy to reduce investment in inventory if you don’t mind a deterioration in customer service. Likewise, it is easy to provide good customer service if you don’t mind having a large investment in inventory. Good inventory management is concerned with...
by Don Johnston | Dec 26, 2016 | Inventory Management Basics, Replenishment
I have developed an inventory simulation spreadsheet for educational purposes. It provides two facilities which are not provided by the online simulator which is accessed by means of the “Simulator” tab. The additional facilities are graphs and use of your own demand...
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