KNOWLEDGE LIBRARY

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12Jun

Unit Fill Rate (UFR)

The unit fill rate (UFR) for an item is the portion of the total number of units...

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...

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...

Red, Yellow, Green Order Release

For individual consumers, credit verification should take place before order release and inventory commitment.  Credit verification should take place on-line and in near real-time.  For large corporate customers, each customer should be classified as a:

• green-light customer (those customers without exemplary payment histories with orders released without credit checks),

• yellow-light customers (those customers with good to average payment histories having a pre-specified sample of orders checked or a check on all orders in excess of a pre-specified value), or

• red-light customers (those with poor credit histories and all orders held for credit checks.)

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