Inventory Control Policy

As is the case in any type of system, there needs to be a reliable...

Shortage Factoring

The shortage factor (SF) for an item is the portion of the sales price lost when inventory...

Lot Size Simulation

Just as the prevailing trade press winds have blown toward lower and lower inventory, they...

Lot Sizing Introduction

To teach lot size optimization I like to use an example that is close to...

Lot Size Optimization

Efficient order quantities (EOQs) incorporate the cost to place an order ( POC ), the forecasted annual demand ( FAD ),...

Forecasting Benefits

Suppose we implement a few RightCast™ practices like forecast bias identification and minimization, individual accountability...

Data Purification

Measure true demand. Identify and eliminate outliers from the forecasting models. Utilize point-of-consumption data to...

Closed Loop Forecasting

Utilize a cross-functional team to develop a single forecast for the long, medium, and short...

Rescheduling

Forecast errors come in two directions, some guesses are higher than actual demands while others...

Highspeed Forecast Error Reaction

Design organization and control policy to insure quick reaction to forecast errors. Rank order the...

Event Calendaring

Establish and implement an event calendar to improve accuracy! The demand for many products and/or...

Forecasting

A few years ago we assisted a major sporting goods company with their inventory strategy....