Inventory Management Advice

Making better use of the data in your inventory system

Reducing Ordering Delays

Reducing Ordering Delays

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...
Reducing Ordering Delays

What is Optimal 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...
Replenishment Cycle

Replenishment Cycle

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...