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KNOWLEDGE LIBRARY

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27Jun

Warehouse Occupancy Percentage

Optimal storage utilization helps enforce healthy inventory management. In our early work with Honda their...

02Jun

Efficient Procurement Inventory

Efficient procurement inventory (EPI) is often required to realize steep discounts when a special opportunity...

02Jun

Inventory Carrying Rate

The inventory carrying rate (ICR) is the percent of the unit inventory value used to...

26Jun

Inventory Activity Profiling & Data Mining

Suppose you were sick and went to the doctor for a diagnosis and prescription.  When...

27Jun

Inventory Performance Measures

Inventory performance measures include financial, productivity , quality, and response time indicators for evaluating the efficiency and...

Efficient Procurement Inventory

Efficient procurement inventory (EPI) is often required to realize steep discounts when a special opportunity to procure arises yet requires a large purchase quantity to negotiate the deal. One of our clients is a large confectioners company. The main raw materials for their chocolate candy are sugar and cocoa. Using highly advanced weather forecasting systems and highly technical analysis of sugar and cocoa futures prices our client picks the optimal price point and time to buy mega quantities of both ingredients. Those mega quantities are housed in large storage facilities and are fairly quickly consumed in production. Since the shelf life for chocolate candy is fairly long and the risk of obsolescence is fairly low, these large buys and conversions are their most profitable inventory and supply chain strategy.

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