by Don Johnston | Apr 23, 2016 | Announcements
Mathematical expressions are not displayed in this blog at present. The problem is that the plugin used for displaying them is not compatible with the latest version of WordPress. I am currently looking for a solution to that problem. I won’t be publishing any...
by Don Johnston | Mar 7, 2016 | Data Accuracy
Introduction Achieving good inventory management requires reliable accurate up to date data. If there are problems with data accuracy, check to see that your inventory system (or ERP system) is being used as it is designed to be used. If you try to shortcut data entry...
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 | Jan 23, 2016 | Forecasting
Introduction If there is no evidence of trend or seasonal effects then forecasting using demand history alone usually simply involves estimation of the demand rate (mean demand per unit time). All of the algorithms mentioned in this article can be used as a basis for...
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...
by Don Johnston | Nov 14, 2015 | Forecasting
Introduction In order to determine when and how much of an item to order, it is necessary to have a forecast of customer demands. The human brain is not as good as appropriate statistical analysis at interpreting statistical data. Forecasting of customer demands using...
by Don Johnston | Oct 29, 2015 | Inventory Management Basics
Pareto Principle The Pareto Principle is named after an Italian economist Vilfredo Pareto who noticed that 80% of the peas which he grew in his garden came from about 20% of the pods. He also found that, in most countries, about 20% of the population owns 80% of the...
by Don Johnston | Oct 27, 2015 | Inventory Management Basics
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...
by Don Johnston | Oct 17, 2015 | Announcements
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...
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