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 | Nov 1, 2016 | Forecasting, Inventory Management Basics, Lead Time Reduction, Replenishment
This article contains detailed information concerning the online Monte Carlo inventory management simulator which can be accessed by clicking on the “Simulator” tab in the menu at the top of the page. In parts of this article, it will be assumed that the reader has...
by Don Johnston | Feb 20, 2016 | Lead Time Reduction, Replenishment
Introduction The lead time for an item starts when the item should be ordered, not when the order is sent to the supplier. To find out the effect on the required investment in inventory of that time difference, see the table in the article entitled “Reducing Lead...
by Don Johnston | Sep 28, 2015 | Lead Time Reduction
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...
by Don Johnston | Sep 23, 2015 | Lead Time Reduction
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...
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