Before we talk about safety stock formula and safety stock calculation we need to understand the use of safety stocks. Why we need Safety Safety Stock Calculation or Safety Stock Formula According to Brown et. al (1996), safety stocks are a quantity of stock that needs to be calculated and maintain in inventory to buffer again… Continue reading
Why Consider Inventory Management Model? One of the leading problems in SCM is the optimization of inventory. Inventory is actually a consequence of other business parameters and policies, such as: Company goals and objectives: sales target, fill rate goals, purchase price variance, etc Operational policies and parameters: lead times, lot sizes, change over times, safety… Continue reading
In most of the business it is often the same people, who are doing the same job. When purchasing materials, the same routines are used on each occasion, even if each and every one of these purchases may be unique, so why we need supply chain policy or procedure ? Similarly, the steps of booking… Continue reading
In supply chain most of us has been performing ABC inventory analysis for many years and in many different ways. This method has served us well and gives us several advantages. However, most supply chain analyst perform ABC analysis on value as you can see in this Wikipedia article and YouTube video. Over the years I… Continue reading
In a JIT supply chain, reliable suppliers will reduce supply uncertainty and make the supply chain more effective, therefore supplier selection is crucial. However, Purchasing in JIT environment is different and therefore it requires a slightly different mindset for selecting suppliers who can survive in JIT Supply Chain long term. Researchers1 suggested that the selection… Continue reading
2017 is about to start with new set of goals and challenges; it can be hard to know where you should first focus your efforts and what your supply chain strategic plan for coming year should be. After all, by now you’ve probably read so much about supply chain strategic plans that you’re left feeling… Continue reading
The supply chain industry must constantly evolve alongside the audiences it attempts to reach. I’ve often said that the one main secret to my success is my possession of an unquenchable thirst for knowledge and curiosity. Without that, it’s hard to stay relevant in a space that changes so rapidly. That being said, where can… Continue reading
There are so many different facets and books for Supply Chain Management; it can be overwhelming when it comes to actually choosing which reference book(s) to purchase. To help readers I have recommended these 7 Supply Chain Management books for beginners. Some readers have asked me can I recommend Logistics Management books which leads me… Continue reading
Many businesses do some kind of forecast, due to its importance to benefits it provides. However, most business also complains about accuracy of their forecasting process and want to how they can improve forecasting accuracy? Supply Chain Management is a broad umbrella of complex functions which are aligned to meet one common goal –… Continue reading
As most of us know, finance is an important function to any organisation as the company has to know how viable its balance sheet and profit and loss (P&L) statement is. The head of this function generally titled as Finance Manager is amongst the key supply chain stakeholders in my opinion. Generally finance managers are… Continue reading
is a Manufacturing Operations, Procurement and Supply Chain leader from international multi-site manufacturing experience in Electrical, Hydraulics and Internet industries
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