There is value in reducing forecast error for sure - the evidence comes from the fact that year-after-year companies continue to hire more demand planners and invest millions of dollars in putting together processes and software packages. Now to dissect this, let us look at the Service-Cost Balance model that we preach in our workshops. Now if we want to quantify the benefits from forecast accuracy, it is difficult to quantify the first item. What is our lost sales? What …
Category: Inventory management
In Demand Planning, Inventory management, KPI, ManufacturingTags KPI, Manufacturing KPI, performance metrics, S&OP, supply chain forecast61 Views services
Is there a single KPI for the entire organization? Possibly, two metrics qualify as good KPIs. 1. Net Profit = Total Income minus all Expenses. This is a Dollar number …
Welcome to DemandPlanning.Net’s short video presentation. In this video we will talk about a quick approach to Safety Stock Planning. …
In Inventory managementTags EOQ, forecast accuracy, forecast error, Price Hedge, quantity discount, safety stock56 Views services
If all works well, then it is a perfect world. You carry just the right amount of inventory to service your customers at 99% and get away with very minimal …