Don Johnston

Active Inventory

Active inventory is inventory which will probably be sold or used in the reasonably near future. How far into the future depends on how soon you are hoping to see the expected improvements. The reason for finding out how much active inventory there is is that only active stock can be reduced, in the near […]

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Don Johnston

Contact Form Problem Fixed

I discovered that the contact form has not been working. I have not been receiving messages from it. The problem has now been fixed. If you have tried to send me a message using the form then please do so again. I should receive it this time. Please accept my apologies for the inconvenience.

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Purchase order

Reducing Reorder Review Periods

When the computer ascertains which items should be ordered now, that is called a “reorder review”. This is often done for a single supplier at a time in preparation for sending an order to the supplier for a number of items. The amount of time between these reorder reviews is called the “reorder review period”. […]

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Don Johnston

Days Cover

Converting a quantity (e.g. stock on hand) to the number of days cover it provides is not quite as simple as dividing the quantity by the average demand per day. Consider an item which moves, on average, once per year and which is out of stock. The fact that item is out of stock does […]

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Don Johnston

Reducing Lead Times

Reducing effective lead times is a good starting point for improving inventory management. One reason is that most improvements in that regard do not require any computer programming. Another is that, even if there are major problems hindering the achievement of good inventory management, reducing lead times will reduce the impact of those problems. It […]

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Don Johnston

Where to Start

The first improvements which you should tackle are determined by their likely effectiveness and how quickly and cheaply they can be implemented. Many aspects of improving inventory management improvement will be dealt with in this blog. Don’t just concentrate on a few. In order to produce large improvements cost-effectively, you need to improve as many […]

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Don Johnston

Choosing a System

When choosing an inventory system or ERP system, the first three things you need to do are to document all of your requirements, make sure that you have documented all of your requirements and make absolutely sure that you have documented all of your requirements. The documented requirements form a check list for use when […]

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