fbpx

KNOWLEDGE LIBRARY

Category

MOST READ

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...

Part Number Management

Mnemonics is a key tool for use in all areas of supply chain logistics; perhaps nowhere more important than in part numbering. Part numbering schemes can be neatly sub-divided into two major groups – intelligent (i.e. with mnemonics) and non-intelligent (i.e. random without mnemonics). We have used intelligent part numbering to great advantage on many projects. One glaring example was L.L. Bean where the first three digits of the nine digit part number reference the style of the item (i.e. sweaters, pants, shirts, etc.), the second three digits represent the size (i.e. small, medium, large, extra large), and the last three digits represent the color. Using our demand pattern recognition algorithms we were able to discern that customers tend to order within the same style, within the same size, and across varying colors. That realization led to a complete re-vamping of L.L. Bean’s slotting yielding a 40% increase in picking productivity. We have also found intelligent part numbering to be very useful in bill of material management and inventory pattern recognition.

 

In addition to mnemonics, we have found the following practices to yield higher efficiencies and accuracies in supply chain logistics.

 

1. Same length part numbers

2. Unambiguous identifying part numbers

3. Consistent break points

4. Groupings of 3 and 4 numbers

5. Elimination of leading zeroes

6. File character elimination

7. Minimal character length

%d bloggers like this: