by Don Johnston | Sep 10, 2016 | Forecasting, Inventory Management Basics, Replenishment
This article provides an overview of inventory management simulation and its use for testing algorithms. If you want to use a particular algorithm for demand forecasting or reordering then it is desirable to simulate the effects first in order to avoid unpleasant...
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 | Dec 20, 2015 | Replenishment
Introduction Claims that particular software packages provide optimal inventory management are commonplace. Such claims, by themselves, are meaningless. They only become meaningful if there is a full description of the theoretical assumptions involved and of the...
by Don Johnston | Dec 7, 2015 | Inventory Management Basics, Replenishment
Consider what I will refer to as the “net quantity” of an item which is the quantity on hand plus the quantity on supplier order minus the quantity on customer back order. Reordering takes place when the net quantity falls strictly below a level known as the reorder...
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